Home Refinancing | Profectus Lending

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Should you refinance your home?

How often so you access your current home loan? Do you know what your interest rate currently is? Do you know how the market is currently travelling? These are the types of questions you should be asking yourself as an old or dated home loan can be costing you thousands of dollars annually. It's easy enough to call your bank and see what they can do for you in order to keep your business, but more often then not they will drop your interest rate slightly in order to keep you happy. This doesn't necessarily mean your interest rate will drop to the most competitive rate, and that where Profectus Lending As mortgage brokers it's our job to source the best possible home loan to suit your situation and needs.

At Profectus Lending, we specialise in the refinancing where comprehensive research in the most suitable home loan for you is our number one goal. Our processes over been perfected over time to make this an easy process for you, something you may not have received when getting your initial mortgage. We have an abundance of experienced brokers who have the knowledge and understanding of the industry to make this process a simple one.

What are the advantages of refinancing?

One of the main advantages of refinancing regardless of equity is reducing an interest rate. Often, as people work through their careers and continue to make more money they're able to pay all their bills on time and thus increase their credit score. With this increase in credit comes the ability to procure loans at lower rates, and therefore many people refinance for this reason. A lower interest rate can have a profound effect on monthly payments, potentially saving you hundreds of dollars a year.

Secondly, many people refinance in order to obtain money for large purchases such as cars or to reduce credit card debt. The way they do this is by refinancing for the purpose of taking equity out of the home. On the flip side of this, the equity in your home can be used to consolidate debt such as personal loans, car loans or credit cards.

How many types of refinancing are there?

You can choose to refinance for a variety of reasons including:

Cash out home equity: You can extract equity from the homes. If the equity is extracted to pay for home repairs or major home improvements the interest expense may be tax deductible.
Change loan duration: shorten duration to pay less interest over the life of the loan & own the home outright quicker; lengthen the duration to lower monthly payments.
Lower rates: if mortgage rates decline you can refinance to lower their monthly loan payments.
Change loan structure: You may have had a variable rate home loan but now feel the need to fix your mortgage for a more secure monthly repayment for a period of time.
Remove mortgage insurance requirement: Where mortgage insurance was required, they loan structures usually come with at a higher interest rate, so having the ability to move to another lender as you now have the required 20% equity in your home.