What does refinancing a home loan mean?
Are you struggling with a loan that has become too expensive?
A lot may have changed since you took up the credit
Refinancing is the process of switching home loans by applying for a new loan to pay out your existing loan.
There are a variety of reasons for this financial decision, including saving money, consolidating debt and increasing your loan amount.
Empowered Finance can help you get better terms for the old loan and shift the debt to a more manageable place.
We provide a complimentary refinance service that takes a lot of the pain out of the process.
Our service involves a comprehensive review of your existing lending in conjunction with your current individual requirements.
We have contacts with a large range of lenders to ensure you get the best deal possible. Talking to our refinancing experts about your refinancing needs can help us secure a deal that perfectly suits your financial needs.
With a mobile service that can come to your home or office, complimentary financial advice, and zero fees, we’re ready to give you a better deal.
What happens when you refinance your home loan?
- Lower payments – Refinancing can leave you with a smaller loan balance and more time to repay. This can allow you to pay lower monthly repayments than before. It can free up more money for your monthly expenses and allow for easier cash flow management.
- Save money – You can save money on interest rates by refinancing into a loan with a lower interest rate. Borrowing a larger amount on a long-term basis can give you the benefit of lower interest rates.
- Shorter loan term – Did you know that you can refinance into a loan with a shorter repayment period and lower interest rate?
- Change the loan type – Refinancing can allow you to switch from a variable rate loan to a fixed rate loan. If the rates are currently low but are expected to rise, a fixed interest rate can offer protection.
- Lost benefits – The current loan may have certain useful features that may be lost if you refinance. Fixed rate and variable rate mortgages have particular aspects and bonuses that may be lost if one opts for one over the other.
- Higher interest costs – Refinancing can involve stretching out the new loan tenure, to be paid over an extended period. As much as you may enjoy lower monthly payments, you may end up paying higher interest costs at the end of the loan tenure.
- Transaction costs – Refinancing can involve expenses like closing costs if you are refinancing a home loan, or origination and processing fees for online transactions. The transaction costs for refinancing can be expensive. Just make sure you will come out ahead before paying the transaction costs.