If you’ve had your home loan for a number of years, it’s likely that your personal and financial situation has changed and now could be a good time to investigate the option of refinancing. Here are four reasons to consider refinancing your home loan:
- Reduce your monthly repayments:
Refinancing to a new lender or loan may let you take advantage of lower interest rates on offer. More competitive interest rates can help lower your monthly mortgage repayments.
- Use the equity in your home:
Refinancing allows you to access the equity in your home. You can get a line of credit based on the value of your home and the amount that you have already paid on your mortgage. This is a popular way to renovate an existing property or access money to make an investment or big purchase.
- Consolidate debts:
Refinancing can help you to consolidate debts such as a personal loan, car loan or credit card into your mortgage, to take advantage of the lower rate typical of a home loan.
- Switch between variable and fixed rate loans:
If you like the certainty that your home loan repayments will stay the same over a period of time, you may wish to switch to a fixed rate loan. Or you may decide to take advantage of a lower variable rate loan if you are willing to accept the risk that rates could increase in the future.
If you’re considering refinancing your home loan, the YML Finance Team offers a range of refinancing and consolidation loans.