Refinancing loans
Refinancing a loan means replacing your current loan with a new one, often to secure the most suitable interest rate, adjust the loan term, or access home equity. It’s a smart way to reduce monthly payments, save on interest, or achieve your financial goals.
Here are the most common reasons why people refinance:
- Lower Interest Rates – Refinancing can help secure a lower interest rate, which could reduce monthly payments and save money over the life of the loan..
- Change Loan Terms – Borrowers may refinance to adjust the term of their loan, either to reduce the term of the loan or lengthening it to reduce monthly payments.
- Access Home Equity – Homeowners may refinance to take advantage of their home's equity by converting it into cash for home improvements, debt consolidation, or other large expenses.
- Switch from Variable Rate to Fixed Rate Mortgage – Refinancing can help homeowners convert a variable rate mortgage to a fixed rate mortgage, providing more stability and predictable payments.
- Consolidate Debt – Some refinance to consolidate high-interest debts into their mortgage, often resulting in a lower overall interest rate.
- Improve Loan Features – Refinancing can help adjust loan features, like adding an offset account or splitting the loan into a combination of variable and fixed interest components.
Ultimately, refinancing can provide financial relief, lower costs, and improve overall loan conditions, but it’s important to carefully evaluate the terms to ensure it’s the right decision.
Reach out to Laura today for personalised guidance and to take the next step in refinancing!
