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- In Bee Savvy - Getting the most out of your loan, First things first - Steps before applying for finance
Everyone would like to get a better deal, especially on their home loan. It’s a common reason for deciding to refinance a mortgage. So what is refinancing? When should you refinance? Is it hard to refinance a mortgage? Bee Finance Savvy is here to answer all your questions.
What is refinancing, and how does it get me a better deal?
Refinancing, is when you take out a new home loan, that replaces, and repays your existing mortgage. When you refinance, you get a whole new loan – including a new interest rate, new terms, and perhaps new features. This means it may be possible to choose a product that is better than your existing home loan.
When should you refinance?
There is no one size fits all answer to this question. The answer depends on your individual circumstances. But, generally speaking, it’s a good idea to at least investigate your refinancing options when you’ve paid off a significant portion of your home loan. When your loan to value ratio changes, (the amount you owe vs the value of your property), this means that you have more equity in your home. In turn, this means that you are potentially eligible for a home loan with a better interest rate, or different features.
Is refinancing hard?
Making sure you refinance the right way can be tricky. It can be hard to separate the marketing hype from reality when it comes to looking for a better home loan. If you’re going to go the trouble of refinancing, it’s important that you get it right the first time around. As with getting any type of home loan, making mistakes can lead to being declined. And being declined can make it harder to get approved when you try again.
At Bee Finance Savvy, we’re highly experienced with refinancing home loans. We’re able to help our clients understand what their options are – whether they can refinance, what home loans they could be eligible for, and what a new home loan will entail.
So if you’re interested in finding whether refinancing is an option for you, get in touch with us today! Our savvy broker Desiree is on hand to answer all your questions, and get you started, with an obligation free consultation.
If you’d like to hear from just some of our satisfied customers, take a look at our reviews on WOMO https://www.wordofmouth.com.au/reviews/bee-finance-savvy-miranda