Refinancing home loan tips

Home loan refinancing is one of the most common reasons for looking for a new home loan. For mortgage holders that have their loan for up to 30 years, it is expected that you will refinance between 6-10 times during your mortgage life. It is therefore important that the refinancing process is simple, quick, easy and gets you the best home loan possible.rnWhat is refinancing?rnRefinancing your home loan is simply changing your old home loan to a new one. This may be by moving to a completely new lender or making changes to your loan with your current lender.rnWhy do people refinance?rnThe four main reasons that people refinance home loans are:rn1. To obtain a cheaper home loan rate or save money on their home loanrn2. To access additional or new features that are not currently available in their mortgagern3. To access equity or borrow additional funds for renovations or purchasing a new homern4. To consolidate other debt such as personal loans, credit cards or car loans to a lower interest raternWhat should you consider when refinancing your home loan?rn1. The different types of rates available such as basic or discounted interest rates, standard variable rates, fixed rates, split loans or honeymoon ratesrn2. The different features that are important such as free redraw, extra payments allowed without penalty, offset accounts and other features, benefits or discountsrn3. Other ongoing fees or one-off feesrn4. The new repayment amount and if this is affordable to yourn5. Taking all the above into account you should compare home loans and ensure you understand the exact amount you will save by refinancing your home loanrnWhat are our five main refinancing tips? • Understand all costs and featuresrn• Obtain a lower interest rate than what you are paying now • Ensure you have the flexibility to pay off your home loan fasterrn• Use home loan comparison tools and home loan calculators to do your researchrn• Pick three of your best home loans and compare everything one by one to completely understand the differencesrnStart your refinancing with clear goals. Whether they are to cut your mortgage repayments, free up cash or improve your home. Home loan refinance troubles start with borrowers who are refinancing without knowing why they’re doing it. Be educated as a small effort upfront can prove substantial savings in the long term. Refinance the easy way and save yourself a lot of money and stress!