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Your home loan never has to be concrete. As your personal financial circumstances change or the economy shifts, better opportunities can always present themselves. When it comes to dealing with a home loan, this means mortgage refinancing.
The process of refinancing a home loan often seems daunting to the uninitiated – which is where your Auckland mortgage broker can help you out.
Why should you consider refinancing a home loan?
There are a few primary reasons for mortgage refinancing in Auckland. It can be used to consolidate debt, rolling credit cards and personal loans into your mortgage to lock everything in at a more appealing interest rate.
An established mortgage broker can advise on whether current interest rates will allow you to secure a better deal on your debt by consolidating mortgage finance.
You can also consider mortgage refinancing in Auckland simply to get a better interest rate on your home loan. This often occurs when the cash rate is cut and lenders follow suit. Your Auckland mortgage broker can help you find the best interest rate for your situation.
What are the benefits and risks of mortgage refinancing?
When you are refinancing for a better home loan, there can be many benefits. Lower interest rates can reduce your monthly repayments; you can take more control of your money and pay off a loan faster; you can secure a competitive product for several years; and you can save on fees and charges.
However, there are certain risks when mortgage refinancing that you must be aware of. If you cannot meet repayments in the long term, refinancing may only be a short term fix. This can also be the case if you are refinancing a mortgage in Auckland for a longer term – you can end up paying more.
Extra fees and charges may be prohibitively expensive, and there is not necessarily a guarantee of finding a lower interest rate.
Refinancing a mortgage in Auckland can make excellent financial sense, but you have to do it right – often with the help of an established mortgage broker. These are the three keys to successfully refinancing a home loan:
- Use an Auckland mortgage broker to help you shop around all lenders for the best deal.
- Make sure you understand and are aware of every single fee or charge.
- Get impartial advice on all potential mortgage refinancing options.
At Mortgage People, we have been helping people refinance to a better home loan for nearly 30 years. Get in touch to see what we can do for you.