Mortgage Refinancing and/or Debt Consolidation

Mortgage Refinancing and/or Debt Consolidation

Thinking about mortgage refinancing or consolidating your debts? Are your credit card debts getting difficult to manage?

If you have a number of loans (i.e. mortgage, credit cards, personal loan, car loan etc) then refinancing your existing mortgage or home loan may be an option for you.

Refinancing can be very effective when

• you have an existing home loan and are looking for a more competitive rate,
• your current home loan needs have changed,
• you wish to raise some cash for another property, a car or some other purpose, or
• you are planning some home renovations or maybe an extension.

If any of the above situations apply to you then mortgage refinancing may be the solution you've been looking for.

Refinancing is when a new loan is taken out on your already mortgaged property and used to pay out your existing home loan.  It is not always necessary to use a different lender, but if this is the case, the new lender will organise to payout your existing loan and Park Home Loans will work with the new lender to ensure the transition goes smoothly.

Is Refinancing Right For Me?

Refinancing isn't always a good idea for everybody.  In some cases it may be cheaper to stay with your current lender and restructure your current loan.

Do you have less than 20% equity?  If so, then you will have to pay Lenders Mortgage Insurance all over again which could add thousands to your loan.  Let us work out whether this is still cost effective for you.

If you are considering moving loans it is important that you check to see if your current lender has any hidden exit costs – such as a deferred establishment fee or a break cost if you are currently on a fixed term.

Also consider how many years of your original loan term you have already paid off.  Refinancing may not be beneficial if you have already repaid 5 or more years of your loan.