It’s never a case of ‘set and forget’ when it comes to your mortgage.
Regularly reviewing your financial and personal situation is essential if you want to take advantage of the best deals and pay off your mortgage sooner.
Even a small decrease on interest can save you thousands over the long run.
Mortgage House shares their top timing tips when it comes to refinancing your mortgage and why now could just be the perfect time for you.
You should be checking on your home loan at least once a year to ensure that it’s still the right deal for you - and if it isn’t, you should consider refinancing. However, when it comes to refinancing, many borrowers don’t realise that timing can be crucial.
There are many other factors that can influence what the best time for you to refinance will be, but getting in while conditions are optimal can make a huge difference throughout the life of a loan.
If you’re looking to refinance you can try negotiating with your current lender. Many lenders will lower their rates to retain your business. Alternatively, you can approach competitor lenders and use your current mortgage as leverage to negotiate a better deal.
Whether you approach your current lender or a competitor lender there are a few things to consider when it comes to the timing:
Is your current interest rate competitive with the industry as it stands today? Check out your options and see if you’re missing out on huge savings by paying too much interest. If it turns out you are, the perfect time to refinance could be right now.
If you’ve been employed at the same place for over a year, lenders will be more interested in taking you on. Lenders see people with steady employment as low-risk, making you a valuable prospect for them. If you’ve currently been working at the same place for a while, it might be good to handle your refinancing before anything changes.
You should consider consolidating your debts if meeting your payments is challenging. This can be an effective way to reduce repayments by paying off the debt over a longer period at a reduced interest rate. If you’re yet to consolidate or you’re having debt issues, you may want to hold off on refinancing.
If you’re going through a period of uncertainty, whether it be related to employment, lifestyle, or other, now might not be the best time to refinance.
Some examples would be a pregnancy, upcoming marriage or a potential career move. Not only will refinancing during this period add stress to your life, but you may find it hard to choose the best package available when your circumstances are likely to change.
Are you getting the best deal?
If you don’t think you’re getting the best deal then refinancing is definitely a good idea. If you time it right then you may just get an even better deal!
A home loan with a better rate and better features can provide lasting benefits so it’s worth getting it right.
Still not sure if it’s the right time to refinance? Chat with a Mortgage House Home Loan Specialist. They can advise on timing, refinance options and show you how to get the best deal. Visit the Mortgage House website or call 133 144.
The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts!
This article is brought to you by Mortgage House.