Scores of people all over New Zealand have found themselves in a situation where their current home loan is not serving their best interests. It is not uncommon at all for home owners to be stuck in a loan where they are paying far too much interest. Should this happen you have two options; continue paying back your mortgage and benefit the Bank or consider refinancing. While refinancing may not be possible for everyone, it is certainly something which should be looked into. Let’s explore the concept of refinancing and find out if it’s something that you should consider.
Reasons to Refinance
People decide to refinance their home loans when they feel that they are stuck with a mortgage which is less than perfect. However, there can be many different reasons to consider restructuring your mortgage payments. Some of these include:
- Reduce the length of your loan
- Lower your monthly payment
- Change from a fixed rate to a variable rate (or vice versa) or mix and match
- Access equity for other uses such as boat purchase, debt consolidation etc.
All these examples are reasons why you may want to refinance. However, they all are handled in vastly different ways. Being aware of the various different strategies for refinancing can make this process far more streamlined and easier to complete.
Am I Eligible to Refinance My Loan?
Eligibility for mortgage refinancing is very much on a case to case basis and depends on two things; your current mortgage structure and equity plus your current financial situation. If you feel you are paying too much for your mortgage and you are dismayed with the lack of available funds in everyday life, then maybe refinancing is for you.
One potential downside to refinancing your mortgage loan is the added fees which can build up from the process. Refinancing fees are an inevitable part of the process and have to be taken into consideration before you seek out refinancing. These fees and extra costs can potentially be so great that they cancel out the savings which you gain from refinancing in the first place. Luckily, it does not have to be this way. By carefully examining many different options and possibilities it is possible to find a refinancing situation which will not cause a greater burden than it is worth. This is where iLender can provide help. Our qualified Brokers are on hand to sift through the many different types of financing solutions to find one which delivers all the upside that you require.
If you’re considering refinancing, or what to explore your mortgage options, then start by talking to a professional. Call iLender today for refinancing advice and guidance. Our talented team can help you save more and feel more at ease with your mortgage situation.