What is refinancing?
Refinancing refers to the process of paying out your current home loan by taking out a new loan (sometimes referred to as ‘loan switching’), either with your existing lender or through a different lender.
Refinancing lets you change your home loan to suit your new circumstances and can often be your ticket to better loan features and lower interest rates.
Home loan refinancing may be used for different reasons, including home renovations, paying off debts (by rolling them into your home loan), obtaining lower interest rates, raising cash for a major purchase, and much more.
Why refinance?
How do I refinance?
When you take out a new home loan, you use some or all of the funds to pay out your existing loan. The new loan often comes from a different lender, but many people refinance with the lender they’ve been using for years. If you move to a new lender, that lender will take care of paying out your existing loan.
At Fin Fit Lending Solutions, we are here to take care of the legwork so you can sit back and enjoy the financial benefits!
What do I need to consider when refinancing?
When done properly under the right circumstances, loan refinancing can be very beneficial. However, there are drawbacks involved – namely the cost. The reasons for refinancing should be legitimate and the long term savings should definitely outweigh the short-term costs.
