What are the reasons for refinancing?
Mortgage refinancing is simply taking out a new mortgage, to replace your current mortgage. There are many reasons why people will refinance home loans, including: • to get a better deal e.g. lower interest rates, little (or no) monthly fees • consolidation of finances e.g. consolidation of credit card debt, personal loans and car loans into one loan can save money • personal life changes e.g.
There are many benefits to refinancing; it just depends on what your objectives are. Some of the most popular reasons are: • To lower your monthly payments by refinancing at a lower interest rate. • To convert a portion of your equity into cash by obtaining a new loan for a larger balance than your current loan. • To switch from an adjustable rate to the stability of a fixed rate. • To consolidate debt by refinancing a higher loan balance and using the cash difference to pay off credit cards, auto loans or other debts. • To pay off the mortgage sooner by switching to a shorter term. Speak to a personal loan consultant to find out if refinancing is right for you.
