Refinancing can bring down the overall cost of servicing a loan by taking advantage of lower interest rates. But sometimes it’s not always the best, or the only, option.
There are many different factors you need to consider when thinking about refinancing a loan.
The first step is to speak to an expert, like Conquer Finance, about your needs and whether you can afford to service a different loan structure.
At this point, we will need to understand what your current and future financial goals look like, and also obtain information about your current loan including structure, repayments and costs.
We also need to consider the current value of your property, so we have access to current data which indicates what the asset is worth.
Then we will have a look at the various loan options and figure out whether it’s worth it for you to refinance.
If it’s only going to save a few hundred dollars a year, taking into consideration exit and application fees, it’s not usually worth it. However, when the savings are above $1,000 per year, it might be sensible to refinance.
Another key consideration is lenders’ mortgage insurance (LMI). If refinancing results in the need to pay LMI again, sometimes it’s not worth switching loans.
If you want to refinance just to lower lending costs, ask us to negotiate with the bank for a lower rate.
If you do decide to go down the path of refinancing, working with Conquer Finance rather than going straight to a bank has advantages because we have access to loan options from many different lenders.
We can make comparisons across multiple lenders and, if there is a better opportunity, we’re able to access it. At Conquer Finance, we are always working to give you great advice that’s in your best interests.
If you’re trying to lower the costs of your loan, contact Conquer Finance on 1300 513 467 or via email to firstname.lastname@example.org and we will provide you with the support you need.