Mortgage Refinance Guide
Mortgage Refinance Savings Calculator
Calculate how much you can save by refinancing. This advanced tool compares repayments across major banks and lenders.Compare 100′s of Mortgages
Compare rates & fees for 100′s of home loan products on the market including refinance, honeymoon and interest-only rates .Refinance Information & Articles
Read info & discussion on mortgage refinance including the the pros and cons as well as effective comparison of refinance offers.Mortgage refinance is when a mortgage holder pays down the balance of an old mortgage with a new loan. Generally, this occurs when a borrower wants to lower their repayments or needs to borrow additional money. The typical scenarios are:
1. Lowering repayments by finding a mortgage with a lower interest rates or fees
2. Lowering repayments by extending the mortgage period, if the rate is the same.
3. Borrowing additional money using existing equity if available.
1. Closing your existing mortgage and taking out a new one, will incurr additional fees which must either be paid up front or added to the debt.
2. Stretching the current debt obligation over a longer period will lower your repayments but it will increase the total amount you have to repay to the lender (all things being equal)
3. Increasing the size of your loan by drawing on equity, will generally mean extending the term of the loan.
Taking cash out (home equity loans) increases your debt which means greater exposure to home price fluctuations. If the value of your home drops and you need to sell, your mortgage may greater than the cost of your home.
Mortgage refinance is a serious decision and not always the right option. Shop around and do your sums carefully considering current and future exit fees, interest rates, facilities and repayments. If you find that you are better off with an alternative mortgage, then refinancing may be a suitable option.
Other Financial Guides
For more discussion on refinancing, visit Refinance Home Loan . >Compare Home Loans: more information on how to compare home loans and using home loan calculators, please visit eRates.com.au, Mortgage Repayment Calculator and Mortgage Comparison Australia >How to compare travel insurance effectively at iinsurance.com.au.