InvestorFi

Graphicmark_IF

AUSTRALIA WIDE 25.2744° S, 133.7751°E

Investorfi - Logo

Welcome to InvestorFi. It’s good to see you.

wordmark_IF
Menu
Welcome to InvestorFi. It’s good to see you.
AUSTRALIA WIDE
BECOME A PARTNER
Scam warning - Click here to find out more scams targeting our clients
Scam warning - Click here to find out more about scams targeting our clients
Scam warning - Click here to find out more about scams targeting our clients
Investorfi - Logo
Welcome to InvestorFi. It’s good to see you.
AUSTRALIA WIDE
BECOME A PARTNER

Home Loan Refinancing: What Is It And How Does It Work?

09/28/2022

Making smart financial decisions is vital in these challenging times. You’ve probably heard about refinancing a home loan, but is it really for you? Before you decide, let’s delve deeper into the subject to better understand the basics to help you make the right decision.  

What Is Refinancing

Home loan refinancing entails replacing your current mortgage with a new one with a benefit. This can be done for many reasons, such as to get a lower interest rate or to extend the term of the loan. Refinancing can also tap into your home’s equity by taking out a cash-out refinance loan.

Reasons to Refinance Your Home Loan

To Lower Monthly Mortgage

The most common reason to refinance is to lower your monthly mortgage payments. If you have built up equity in your home, you can refinance your loan and receive a lower interest rate. By doing this, you save hundreds of dollars each month, which can be used to pay down other debts or free up some cash.

To Shorten Your Term Loan

Another reason to refinance is to shorten the term of your loan. This can save you thousands of dollars in interest over the life of the loan. If you are close to paying off your mortgage, home loan refinancing can help you become debt-free sooner.

To Get Financial Relief

You can also refinance your home if you are facing financial hardship, such as a job loss or medical emergency. Refinancing can give you much-needed breathing room by temporarily lowering your monthly payments.

To Earn More From the Property

Interestingly, refinancing can help you get top dollar for your property if you plan to sell your home soon. By securing a lower interest rate, you can make your home more affordable for potential buyers and help you get the most money possible from the sale.

To Use Equity From Your Home to Purchase an Investment Property

Saving up for a deposit for an investment property whilst paying off a home loan is difficult. If you want to purchase another home but you don’t have enough money to pay for it, then you can refinance your mortgage and access the equity in your existing home. You gain equity in your home by paying off your home loan. 

Refinancing can be a promising option but know it is only for some. Ask your financial advisor or mortgage specialist to gain better insight. Compare rates from different lenders, and check out their terms to see if it is an intelligent decision.

How Does the Process Work?

If you think the process is complex, you’ll be surprised to see it is pretty simple than purchasing a new home. 

There are several things to consider before you proceed with home loan refinancing, such as the type of loan you have, your current interest rate and the fees associated with taking out a new loan. You’ll also need to compare rates and terms from different lenders to find the best deal.

Once you’ve decided to refinance, the process is relatively straightforward. You’ll need to apply for a new loan and then use the proceeds to pay off your existing one. Make sure to shop for the best rates and terms and compare offers from multiple lenders before deciding.

Mortgage refinancing can be a great way to save money on your loan payments, but carefully consider your options before making a decision.

What Are the Benefits of Refinancing a Home Loan?

There are many benefits of refinancing a home loan. Some of the most common reasons people refinance their mortgage are to get a lower interest rate, save money on monthly payments or pay off their home loan faster.

Save You Money Each Month

If you’re paying private mortgage insurance (PMI) on your current mortgage, you may be able to cancel it when you refinance.

You may get a ‘no-closing cost’ refinance, which can save you thousands of dollars in upfront costs.

Help You Pay Off Your Home Loan Faster

If you’re looking to pay off your mortgage faster, you can refinance into a shorter term loan. By doing this, you’ll likely have higher monthly payments, but you’ll also be able to pay off your home loan in a shorter time.

Lower Your Monthly Payment

If your financial situation has changed since you originally got your mortgage, you can lower your monthly payments by refinancing into a loan with a longer term.

Consolidate Your Debt

If you have high-interest debt, such as credit card debt, you can use refinancing to consolidate that debt into your mortgage. This can help you save money on interest and get out of debt faster.

Risks of Refinancing a Home Loan

The risks of refinancing a home loan include the potential for higher interest rates, fees and closing costs. You may also be required to pay PMI if you choose to refinance with a new lender.

Aside from that, if you extend the term of your loan, you may end up paying more in interest over the life of the loan. When you are not careful, you could end up refinancing your loan more than once and paying even more fees and interest.

Refinance with Investorfi

If you’re planning to refinance but you don’t know how or where to start, we can help.

At Investorfi, our goal is to help you get the best deal. Our wealth strategists will help you assess your situation and choose the right financial lender, product and structure for your finance. Contact us for more details.

Contact Us
wordmark_IF

partner with us

Subscribe to stay update date with the latest services, and articles and news and then some.

subscribe
Graphicmark_IF

This is what we do.

We are finance strategists in the Mortgage Broking industry, helping Australians build wealth through property investment.

Our sole purpose is to reinvent ways to keep the Great Australian Dream Alive. Because we believe it’s everyone’s right to the security home ownership affords our families and community. Yes, our niche is Finance Strategy for Property Investors, but it is not what we do that makes us tick;
it’s

Because property investment is a decisive step toward financial freedom, we cultivate lasting relationships with our clients. We ain’t just a ‘whame bam, see ya later man’ kinda outfit. In fact, our business is built entirely from our lasting relationships with our clients who have suggested us to their inner circle – their family and friends. That is a pretty big tick of approval and a sure vote of confidence.

This is How we do

What separates us from the rest?

Have you ever considered the difference between Mortgage Brokers?

A Broker worth their salt has a playbook of ‘scenarios’. They are finance strategies that have worked in the past. He will offer up one, two or even three scenarios that he thinks will work best for you. 

But the great ones challenge the status quo, strategising new plays that serve your unique situation and financial goals. They will study, visualise, and fine-tune before offering only the best scenarios that build a rewarding property Portfolio.  

They never let good be the robber of the best and only play to win!

InvestorFi is a group of finance strategists that will design a unique scenario for your state of play towards your long-term game plan.

But don’t just take my word for it.

Clients like Tony F. said: I couldn’t be happier with the service. Wayne was excellent in guiding me through and delivering a great investment loan. Very responsive and savvy investment brokers. Will continue to use their services in the next purchase. 

And like Kim, Wayne is extremely dedicated, professional and a pleasure to work with. He worked tirelessly to help me secure an alternate lender before the settlement date and was extremely prompt and clear in his communications with me. 

And 

Robert wrote: Wayne is always very responsive and takes the time to lay out all the options in plain English.

Reviews like this make our souls sing. We’re in the business of helping people achieve real results that last!

So if you’re looking for a great Finance strategist like these incredible clients, you’re in the right place.

This is why we do

Gone are the days a single income could afford 2.5 kids, a pet, and a four-bedroom house in the burbs! 

At InvestorFi, our sole purpose is to reinvent the great ‘Australian Dream’. Because we believe it’s every citizen’s right to the security home ownership affords our families and community, not just for today but for generations to come.

But because it’s become so difficult, it requires complex solutions. One way is to seek finance strategy before purchasing a home. This way, you can leverage your full potential to live where you want to and invest where you can afford to. 

Property ownership has become a game of ‘finance strategy’, placing a premium on finance know-how. That is why we value education; our mantra is knowledge equals freedom, but knowledge shared is freedom multiplied.  

There is no drought; we have hit a new era with its epic challenges. Not everyone is up for the grind it takes to keep the dream alive. That’s why we also place a premium on camaraderie. We don’t see ourselves as a ‘hit and run’ service but as a hub and a way of life.