If you’re considering refinancing, but still aren’t 100% sure, you might need a bit more information to help steer you in the right direction and decide if it is really the best decision for you. Here are five benefits of refinancing that you might not already be aware of.
For those who prefer plain text:
If you have a $400,000 30-year mortgage at 4.55%, your monthly payment would be $2039. Refinancing with a new loan at 4.05% would reduce your monthly repayment to $1,922 and save $42,276 ($117 per month) over the life of the loan!
- Lower your fees
Refinancing could enable you to pay less in fees and interest, to help you save money over the life of the loan!
- Reduce monthly payments
Refinancing may enable you to reduce your monthly payment, or allow you to make extra payments and pay down that loan quicker! Remember fortnightly or weekly payments are better than monthly!
- More flexibility
Enjoy greater repayment flexibility. The loan you arranged 5 years ago might not be suitable for where you are today!
- Equity access
Access the equity in the home for investment (known as debt recycling) or to pay down other obligations which could have higher interest rates like personal loans or credit cards.
- Consolidate your loans
Consolidate multiple loans into a single monthly payment, or take advantage of an offset account where your pay + rent is put to reduce the interest on your loans!
Build a better relationship working with a Finance Broker like Red & Co Finance, and have access to a personal relationship manager to make managing your finances even easier!
Speak to Red & Co today about how we can help you with refinancing Ph. 1300 88 73 28