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Refinancing

When it comes to the financial world, many people don’t understand specific terms and phrases that are used and can be intimidated or confused when confronted with them. That’s why we at Be There Financial Services are here to help you through the process and explain everything to you in a way that is not in industry lingo.

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.

Just to be clear, refinancing is not the same as getting a second home loan which will go on top of your existing one, many people seem to make this mistake when thinking of refinancing, and when people hear “second home loan” it scares them. Refinancing is closing your current loan & opening a new loan with a new lender. Also by Craig pointing out the benefits of why we would be doing this for you, plus showing you the potential savings you will make, to have money back in your pocket & not the banks.

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 and reasons for refinancing.

Reduced rates

Maybe when you were younger you got locked into a mortgage, 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 really help and assist with cashflow.

Reduced years
Many home loans are locked in for certain periods (typically 30 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 outright faster which is always the goal. Getting a shorter mortgage is what attracts people to the idea of refinancing. You will be greater repayments over a shorter period, but you will pay it off faster this way.

Cash Out
When you first get a home loan you accept that a large amount of your pay/income will be going towards paying your house off for the foreseeable future, and with this realisation comes the reality of not being able to save the amount you’d like for certain things such as home extensions, vacations or home repair. When you refinance, you can elect to take ‘cash out’ using the equity in your home to do these things.

Transactional Banking
Given Craig’s years in all areas of banking, it’s not just about getting the best home loan for you, he also looks into the best transactional banking that will accompany & compliment your home loan. We all hate those $2.50 ATM fees, so Craig looks at the best options where again you are not charged to get your own money out. Did you know that there are some lenders / Bank out there now that have NIL ATM fees Australia wide & some with no overseas transaction fees also?
When you choose to refinance you shouldn’t go to just any lender, you should be going to your local mortgage broker, like Craig as he has access to most money lenders in the area and more.

If you’re in the Illawarra or given technology these days, anywhere where you can connect with us (e.g.) Zoom, Skype, FaceTime etc. The Team at Be There Financial Services would be more than happy to assist you with your lending needs.

Be There Financial services has friendly and experienced staff who will guide you through the whole process, so please don’t hesitate to call is or email admin@betherefs.com.au

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