You’re probably wondering if now is a good time to refinance your mortgage. So, how do you really know when it’s time to refinance? According to most experts, it is recommended that you conduct a financial health check at least every three years and that you also review your home loan at least once a year.
But then again, how do you know if it’s time to refinance? Should it be as soon as you’ve sourced a better rate or should it be when your existing mortgage no longer matches your needs? It can really be a difficult question to answer yourself. To help you with that, this article will cover some points for you to think about before deciding on whether it’s time to refinance your mortgage or not.
The right time for you to refinance will mostly depend on your personal situation. You should probably discuss your options in detail with a specialist mortgage broker, an accountant, and a financial expert to guarantee that refinancing makes financial sense for you.
In general, it may be time to shift to a new lender when your lender’s interest rate is no longer competitive or you encounter a major financial or lifestyle change. You may want to transfer to a new lender if you’re looking for features that your existing home loan does not offer. A good example of features that your home loan may not have offered you is the ability to access the equity in existing property or the ability to make unlimited additional repayments.
Furthermore, you may also like to shift to a fixed-rate or split-rate loan to take advantage of a low-interest rate environment, especially if you believe interest rates are likely to rise in the near future. Lastly, you may need to consolidate debt.
What are the factors you have to consider?
Finding a more competitive interest rate to lower your repayments is probably one of the most common reasons to refinance your mortgage. In addition to that, there are also several lifestyle and financial factors you need to consider before making the move.
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