What
type of things do people refinance for?
Home
loan refinancing may be used for different reasons including:
->
Renovating your home or other home improvements such
as a pool.
-> Paying off your debts such as credit cards by
rolling them into your home loan.
-> Obtaining a cheaper rate, even if it means giving
up a few loan features.
-> To raise cash for a purchase such as a car
-> You are paying a high interest rate – for example,
if you arranged a low-start, rising-rate loan from your
homebuilder.
->
You want to switch from a variable rate to a fixed rate,
perhaps because you can want to reduce the risk of higher
repayments.
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How
will refinancing benefit me?
Refinancing
can be a smart way to manage your money. By obtaining
a lower mortgage interest rate, you may lower monthly
payments. When you refinance to lower the interest rate
you have to pay, you can significantly reduce your monthly
mortgage payment as long as you don't increase your
mortgage principal amount (as would occur with a line
of credit). Our refinancing checklistcan help you decide
if refinancing is right for you.
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Should I refinance with
interest rate rises?
When
the Reserve Bank raises interest rates, banks and other
lenders usually follow suit by increasing your mortgage
repayments. Refinancing your home loan from a variable
to a fixed rate can provide certainty with your repayments.
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I have a lot of credit
card debts and personal loans. What is the benefit of
consolidating?
By consolidating
various smaller debts like credit cards or personal
loans into one large debt, you may be able to reduce
interest rates or lower your monthly repayments. Plus
you only have one loan to keep track of.
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Why should I refinance
with a AFM broker and not my bank?
When
done properly, mortgage refinancing can save money and
work very well. However, there are drawbacks involved
– namely the cost. The reasons for refinancing should
be legitimate and the cost benefits in the long run
should definitely outweigh the short-terms costs. At
AFM we have no home loans of our own to sell, so you
can be sure we will provide you with a number of options
to suit your needs – not the needs of a lender.
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We
have access to over 700 loan products from Basic Home
Loans to Professional Packages.
Once
you have chosen which loan to go with, your assigned
and dedicated mortgage broker will then assist you through
the whole loan application to loan approval and settlement
process, plus, your broker will continue to be there
for you in the future when you need further finance,
property and loan related advice or assistance.
Contact
us today for a free consultation.
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