Refinancing Your Mortgage: A Concise Guide to Streamlined Solutions
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Refinancing Your Mortgage: A Concise Guide to Streamlined Solutions
The process of refinancing your mortgage involves replacing your current home loan with a new one, usually to secure better loan terms or lower interest rates, either with the same lender or a different lender.
Homeowners may be able to tap into their home equity, consolidate debt, or decrease their monthly mortgage payments.
It’s important to carefully consider your specific financial goals and circumstances before deciding whether refinancing is the right move for you.
By refinancing, you’re essentially applying for a new home loan. Typically, this is done to secure a more competitive interest rate and negotiate new loan terms with the same or a different lender.
You’ll have to provide documentation to prove your income, creditworthiness, and overall financial situation. When the LVR exceeds 80%, there might be additional fees like lenders mortgage insurance to pay when refinancing your home loan.
Key Takeaways
- Refinancing your mortgage involves switching lenders for an external refinance or staying with the same lender for an internal refinance, replacing your existing home loan with a new one to usually improve loan terms or lower interest rates. Nonetheless, refinancing can be motivated by factors other than seeking a better rate, such as divorce, accessing cash for property investment, or financing home renovations.
- The process requires you to compile documentation that supports your income, creditworthiness, and financial stability, your broker will be capable of guiding you through this process.
- Depending on your unique situation, refinancing costs may include fees such as lenders mortgage insurance, which may or may not be cost effective.
Possible Reasons For Refinancing?
Potential Cost Savings
Refinancing your mortgage means replacing your existing home loan with a new one. People often consider refinancing to take advantage of a lower interest rate, reduce their monthly repayments, or access better loan features. It’s essential to understand why you’re refinancing to make the best decision for your financial situation.
Understanding the Costs and Fees
When you refinance your home loan, you’ll likely encounter several costs and fees. These may include:
- Application fee
- Valuation fee
- Recurring fees such as monthly or annual charges.
- Discharge fee
- Break fees for fixed rate loans
- Mortgage registration fee
Your mortgage broker can present you with a cost comparison report to support the decision-making process regarding the possible value of refinancing.
Unlock Equity
Another reason some people refinance their mortgage is to access equity in their property, which could be used for various purposes such as investing in the share market or property, making improvements to their home. Keep in mind that accessing equity will increase your loan balance and, usually an increase in your repayments.
Debt Consolidation
If you have multiple debts such as credit cards, car loans, or personal loans, you may consider consolidating them into your mortgage. This can help simplify your finances and potentially lower your overall interest costs.
Home Renovations
Refinancing your mortgage has the potential to provide funds for various purposes such as home renovations, improvements, or even the construction of a granny flat. This has the capacity to boost the value of your property and enrich your living space.
Home Loan Check Up
Getting a home loan review offers the opportunity to reevaluate your current home loan and ensure it remains appropriate for your needs. Working with a Pro Options Lending Solutions can help you determine if you still have the right mortgage for your situation.
Get in touch today. We promise no sales pitch or pressure.
How We Help Business Owners and other People Get A Better Refinancing Outcome
Over the past 13 years we’ve helped hundreds of self-employed business owners and other people get better finance.
The Right Loan For Your Situation
Unlike other banks and brokers that most commonly cater for wage earners (not business owners), and are restricted to selling their own or brand-approved lending products (whether they are right for you or not), we specialise in working with business owners and have access to hundreds of loan options from dozens of lenders to ensure you get the right loan for your situation.
We Help You Structure Your Loan
While other banks and brokers merely find you a loan, we look at your whole financial situation and help you structure your loans in order to set you up for the future.
We Even Do The Paperwork
Once we find the right home loan, we pre-fill all the forms to save you time and maximise your approval success. And we review everything each year to ensure you’ve always got the right home loan.
Testimonials
Other Self-Employed Business Owners and Individuals We’ve Helped
If you’ve ever tried to get a loan from your bank, you’ll know how hard (and often disappointing) it can be. But it doesn’t have to be that way. Take a look at what some of our clients say about how we helped them get finance for their home, investments, and business:
The team at Pro Options has more than 48 years of combined experience helping self-employed business owners and other indiviuals get fast approval for better finance. Here’s what some of them say about their results and experience with our team:
A Huge Thank You To Alex From Our Mortgage Options!!
A huge thank-you to Alex from Our Mortgage Options!! I came across Alex about 18 months ago when my partner and I were trying to get into the housing market as first home buyers. Thank god we found Alex and had him on board to help us with our journey. He guided us all the way from getting our pre approval to buy our land and house making everything so easy and stress free. He found us a great loan and bank, explaining everything we needed to know in plain english. He managed everything related to our bank including progress payments and inspections with his communications always prompt causing no delays. Thank-you Alex for helping us to get our first home:)
I have been working with Alex for 12 years and he has been wonderful to deal with, his knowledge and client focus have saved me thousands of dollars. Highly recommended!
Alex and his team are top notch brokers and always goes beyond the call of duty to help clients, I would recommend his service to anyone needing finance.
My Investment Refinance Journey Paid Huge Dividends!!
“As an experienced investor who has required finance for property purchases whether they be for land, units, houses or for construction both in NSW or interstate, I’m always after a better deal. Ultimately the better the deal, the more dollars I can drive back into further investments to achieve my financial freedom dreams and fund my lifestyle that includes a comfortable family home, private school fees for my children, numerous overseas trips, and stepping ever closer to leaving the rat race behind. Recently in this strange Covid-19 world, Alex at Our Mortgage Options managed to refinance my exisiting mortgages and secure me additional construction loan finance that has now paid off handsomely. I’m basically at minimum now $500 a month (or $6000 a year) better off with reduced interest rate payments meaning that the next project after this new property is built, is not that far away. The refinance journey due to financial institution compliance can sometimes be excruciatingly long and frustrating but with Alex in your corner, well worth it!!”
Alex was extremely helpful throughout our 1st home purchase. He made the process smooth and hassle free. He is well versed in his field and we would recommend his professionalism to anyone who is needing the guidance that he offered in serving us.
Great mortgage brokers. These guys will give you great advice in terms of the best home loan product. Speak to these guys before going to your bank. You won't regret it.
Our Six ‘A’ System To Help You
Get The Right Finance -- Fast
ACQUAINTANCE:
We take time to understand your needs and financial situation so we can source and structure the right loan to save you interest & fees while protecting your assets
ANALYSIS:
We compare loans from dozens of lenders and negotiate rates, fees, and conditions on your behalf – all at no cost
ALTERNATIVES:
We present you with several options, explain all the details, and give you our professional recommendation
APPLICATION:
We pre-fill and package your application (saving you hours of admin) for maximum approval success
APPROVAL:
We follow up to ensure everything goes smoothly (with no mistakes) right through to settlement day
ACTIVE CARE:
We regularly review everything to ensure you can be confident you have the right loan for your situation.
