Restructure or Refinance? How to decide what is best for you.
Why would you consider a review of your existing mortgage structure or change lenders? Doesn’t it sound like a lot of hassle?
The answer is simple: because it can potentially save you thousands of dollars over the course of your mortgage term, and don’t we all want that?
Have you had a review of your existing mortgage structure and done the numbers on the ‘costs vs benefit’ to break any fixed term loans or restructure some to a floating facility? If you haven’t you won’t be aware of the answer to this or the potential savings available to you. For some people moving banks may not be an option as
- they’re recently self employed
- still in their 90 day probation period
- about to have or just had a child
- had some larger expenses recently
- or have too much short term debt (personal loans, vehicle finance).
When is a good time to review your mortgage?
NOW! Now is actually the perfect time to check and see if you can still save some money by reviewing the rates you have, vs what might now be available to you and the structure of your mortgage. As a specialist in ‘Smarter Mortgages’ I run the numbers on the cost vs benefits of moving from a higher interest rate to a lower interest rate. If there are any potential savings available to you, you have a couple of ways of being able to utilise them, such as putting them in your pocket by reducing the repayments to the minimum and paying less for your loan, or keep your repayments the same and using the savings to pay off the loan faster.
Why refinance?
This usually means moving lenders by the way…….If you can’t do what you want to do with your existing mortgage and lender, then moving to another one might be a better option. Some people also choose to move if they are unhappy with the services they have been receiving.
So: how can Rachael Thompson – the Smarter Mortgage Lady – save you money on your mortgage?
I use a unique process to structure your finances, creating flexibility and certainty and giving you the ability to pay off your mortgage faster – if you choose to do that – or certainty of cost and repayments to enable you to manage your budget. I believe everyone deserves to pay off their mortgage as fast as possible, while still maintaining a comfortable lifestyle.
If you approach your mortgage like a business, then you should be looking to keep your costs to a minimum and maximise any savings. It’s that simple! And it all starts by me running the numbers.
Ready to talk? Contact me today and let’s take a look at how I can save you time and money.
