Refinancing Shellharbour

refinancing shellharbour


When it comes to the financial world, many people don't understand specific terms and phrases that are used and can be intimidated when confronted with them.

Refinancing is not a scary word, and you shouldn't feel intimidated when reading it or hearing it from your mortgage broker.

Refinancing is just renegotiating your mortgage and changing it and many people these days are choosing to this for various reasons, so it's not a new concept and it is in your best interest to know about it.

Let's be clear here, refinancing is not the same as getting a second home loan which will go on top of your existing one, but many people seem to make this mistake, and when people hear "second home loan" it scares them, so you need to know the difference here.

So now that you have a basic understanding of what refinancing is, why are more people choosing to do it? And more importantly, should you do it yourself?

Here are some of the benefits of refinancing.


Reduced rates

Maybe when you were younger you got locked into a mortgage you didn't really like, but one of the big banks talked you into, and because of this you got slapped with a high-interest rate, and you want to renegotiate your terms. Refinancing is your tool to do this and can help you get much lower interest rates on your home loan, which if you're in a bad situation financially speaking it could help.


Reduced years

Many home loans are locked in at certain years, but maybe you have come into a better paying job or inherited some money from a relative and realise you can pay it off sooner, and in doing so you will own your home forever which is always the goal. Getting a shorter mortgage is what attracts people to the idea of refinancing and yeah you might be paying more, but you will pay it off faster this way.


More money for other things

When you first get a home loan you do accept that a large amount of your pay cheque will be going towards paying your house off for the foreseeable future, and with this realisation comes the reality of not being able to afford certain things such as home extensions, vacations or home repairs and that's a scary thought. When you refinance, you can get a lower rate which means you will pay less every payment which then frees up more money for other things.

When you choose to refinance you should’t go to just any financial adviser you should be going to your local mortgage broker since they have ties to most money lenders in the area. If you're in the Shellharbour area, then Be There Finance is your best option.

Be There Finance has friendly and experienced staff who will guide you through the whole process, so give us a call on 0447 284 211 or visit our website for more details.