As the economy grows stronger and out of the financial crisis, for homeowners it’s a great time to refinance. With the market place changing and new opportunities available – many consumers do not realise how much they could benefit from refinancing their home loan.
Here are some new opportunities or reasons why refinance would assist you in growing your funds and moving forward.
1: Improve your Credit and Debt
Using refinance to control your debt will help you through some rough months and can help increase your credit history. By addressing the debt to income ratio before it gets reported on your credit history, you will be securing your chances of receiving credit in the future. Consolidating your credit cards into your home loan could decrease the interest you are paying by 10%, which would free up a lot of funds every month for you.
2: Take Advantage of Interest Rates
There are many consumers who don’t realise they can reduce their interest rate or get a fixed interest rate by refinancing. Switching to a fixed interest rate from a variable, will assist you in repaying your loan back sooner and secures you against industry interest increases.
Expanding your home or renovating is a great investment as it adds value to your greatest asset. Refinancing now can assist you in taking advantage of low construction costs and will boost your equity for future use.
4: Change Lenders
Many consumers are frustrated with their lender for various reasons. By refinancing you are able to pay out fully your current lender and choose a new lender with features that suite your wants and needs.
5: Start a Business / Business Investment
As the economy is evolving, now is a great time to start your own business or invest some funds into another entrepreneur. By refinancing you can pull out money on top of your home loan that will provide you with the start up funds necessary to initiate a successful business. By investing in another person’s business you will essentially buy a share and be able to make a return on their success.
Refinancing your home loan can assist you in various ways to free up funds for personal projects or to open up that dream business.
– Andrew Black has been working in the home loan industry for several years. He helps people to refinance their home loans.