Is your New Year’s resolution to pay off your home loan quicker, save money or simply to get on top of your finances?
Whether you’re feeling strapped for cash after Christmas or your aim is to save for a holiday or major purchase in 2020, the start of the New Year is the perfect time to find a new interest rate.
How will a new interest rate benefit me?
Put simply, you could end up saving thousands of dollars in interest or fees.
If you’ve never refinanced your home loan before, you may have gone through the motions of servicing your loan repayments without giving too much thought to your interest rate – and how it impacts your hip pocket.
And if you happen to be on a variable loan, it’s likely that your lender has increased your interest rate at some stage and you’re probably paying more in interest than you need to be.
While a small spike in interest might not seem like a big deal, you might be surprised to know just how much money you can lose unnecessarily. To see just how much a small increase in interest rate impacts your bottom line, try using this online calculator.
Finding a lower interest rate by refinancing will not only help you pay minimal interest on your loan, but you will end up paying less for your home (because the interest you’ll be paying back over the life of your loan has decreased).
Refinancing for a lower interest rate can even help you pay off your home loan quicker, simply by choosing to redirect the money saved in interest towards paying off the loan’s principle.
Why is the new year the best time to refinance?
It’s always a good time to refinance, but there’s no better time to find the best deal on your home loan than at the start of a brand new year.
Realigning your mortgage to a lender that offers better rates can save you money from the get-go that will have a positive ripple effect over the rest of your finances well into the months to come.
Refinancing in January can help put you in control of your finances and start the year afresh. Getting the best possible deal on your mortgage early in 2020 will inspire you to chase your financial goals for the rest of the year and help increase your cash flow in other areas of your budget.
What does refinancing involve?
Refinancing your home loan is a quick and easy process that every savvy home owner should explore at regular intervals during their loan term.
Just as you would re-evaluate your utility company charges or compare insurance companies to find a better deal, refinancing is the equivalent of giving your mortgage a health check.
While you might have noticed comparison websites that advertise refinancing online, consumers should be aware that these sites are businesses which make money through promoted links. Comparison websites are risky when refinancing because they will only present you with options from a select group of lenders.
Brokers are best when it comes to refinancing as they have the expertise to assess your individual financial needs and find the best loan to suit your financial situation out of the hundreds of loans available. In order to refinance they might suggest loans that reduces your interest (and your loan repayments), have a better loan term or switching to a loan with little or no fees.
To see how much you could save by refinancing your home loan, engage the experts at Together Financial Services by filling in this short online form or calling our team on (03) 8761 9024.
If you can produce a recent bank statement (no older than 30 days), the experts at Together are confident that they can find you a new interest rate to make 2020 the year you take control of your home loan.