- Are you happy with your current interest rate?
- Are you happy with the way the loan is structured?
- Are you happy with the level of fees you are paying?
- Are you happy with the relationship you have with your bank or lender?
If you have answered NO to any of these questions, then refinancing is something you should definitely consider.
WHAT IS REFINANCING YOUR HOME LOAN?
Refinancing your home loan is when you either payout your existing home loan with a new home loan from a new lender, or negotiate a better loan with your existing lender.
THE BENEFITS OF REFINANCING
There are many and varied benefits of refinancing your home loan.
- The number one benefit in refinancing is usually to secure a better rate. By securing a better interest rate a range of other benefits follow such as;
– reducing the amount of interest you pay overall on your home loan,
– reducing the monthly repayment on your home loan,
– increasing your monthly cash flow that can be used in other areas.
- Refinancing can not only reduce your interest rate but can also reduce or eliminate fees associated with your home loan.
- Refinancing is also an opportunity to access the equity you have accumulated in your property. This can be used for things like renovations, investing, purchasing a new car, a holiday or any other worthwhile purpose.
- Refinancing can help you consolidate debts such as a personal loan, a car loan or a credit card on to your home loan, making your overall monthly commitments lower and your finances easier to manage.
- In lowering your monthly commitments, your cash flow increases, allowing you to make extra payments on your home loan if you wish.
- By making extra payments you effectively reduce the term of your loan, in turn saving you extra money in interest.
- Your current loan may no longer suit your needs the way it did when you first took it out. Your circumstances may have changed meaning you may now require more flexibility in your loan or you simply just want to know what’s available out there.
HOW DO YOU REFINANCE?
So, how do you go about refinancing your home loan?
You could spend hours having appointments with several lenders, but you won’t cover them all. You could spend hours searching the internet for a number of options, but you won’t cover them all. You could spend hours on the phone talking to lenders, but you won’t cover them all.
There is a better way………
THE BETTER WAY TO REFINANCE
Spend an hour or so with a Regional Finance Solutions Lending Specialist and he or she will do all that for you. Your Lending Specialist will review your current circumstances, find out what is important to you in a home loan (which may not necessarily mean the lowest interest rate) and set about finding you the best deal that suits you. They will usually come back to you with three recommendations for you to choose from.
Once you decide which loan and which lender you prefer, your lending specialist will then compile all the information required to make an application and submit the application on your behalf. They will liaise with you throughout the whole loan process.
When they obtain approval for you they will then walk you through the loan offer documents and send the documents back to the lender for you. They will also introduce you to the staff of the local branch of the lender you have refinanced with, so that you have a personal contact.
They will then keep you posted throughout the settlement process and once settled, contact you to make sure the process went smoothly or address any post settlement concerns you may have.
WHAT IS THE COST OF USING A LENDING SPECIALIST?
So how much will a Regional Finance Solutions lending specialist cost you for all that work on your behalf? Absolutely nothing. We are paid by the lender for referring them the business. How good is that? The Lending Specialist uses their years of experience to get you the best deal they can and the lenders pay for it all.
So, if you are considering refinancing for any of the above reasons, then have a chat to us first. It might just be the best hour or two you spend in relation to your home finances.
About the author: Mark Prosper has been involved in the Finance industry for 40 years. Mark is a member of the Finance Brokers Association of Australia and holds a Cert IV in Mortgage and Finance Broking. Regional Finance Solutions is also a corporate member of Mortgage Finance Association of Australia, as well as the Financial Ombudsman Service of Australia.
Mark spent 18 years with the Commonwealth Bank and a further 20 years with St George in various management and lending roles prior to joining Regional Finance Solutions.
Mark looks after the lending needs of the Port Macquarie and Kempsey region.