If you’re not happy with the interest rates you’re paying today on your home loan, it might be feasible to consider refinancing. Going this route gives you a chance to reorganise your loan situation and pay off your remaining balance at a more manageable rate. This is a big decision, though, and you want to make sure it’s impeccably timed.
When do you know that now’s the right time to refinance your loan? You’ve got to the study the market carefully and find the perfect moment to act. Having a good broker by your side to offer advice is also beneficial.
Finding the right interest rate
As a general rule, if you’re considering refinancing, the most important factor to consider is loan interest rates. When are they low – not just now, but at stably low levels over a stretch of a few months?
For example, in the United States, that time is now. MSNBC recently reported that refinancing applications are rising 9 per cent week over week as refinance rates continue to drop.
“From a borrower perspective, rates held steady at seven-month lows last week, providing some borrowers an opportunity to refinance,” economist Joel Kan said.
Can you find this same window of opportunity in Australia? That’s the key.
Examining your own situation closely
Of course, spotting the possibility of getting low-interest loans is only half the battle. You also have to consider your own finances. YourMortgage.com.au warned that even if rates are low, refinancing still might not make sense, depending on your circumstances.
For example, are you not planning to own the property for much longer? If so, refinancing might not be necessary. Or, are you worried that because of your credit score, you might not get as low a rate as the population at large? These are just come of the considerations to make before jumping at the chance to refinance.
We will help you make a deal
If you do decide that now’s the time to refinance, then speak to us right away. We can get you set up with a lender you’ll like at an interest rate you can afford. Talk to us today about whether this process is right for you.