When you first applied and got your home loans or investment loan you might have had a completely different set of circumstances to now.
Do you find yourself asking:
- Am i paying too many fees?
- Is my interest rate too high?
- Can i get out of this loan as i know there is a better one?
- Can i draw some equity out of my loan?
If you ever asked any of these, its worth a simple question to your local mortgage broker or your bank manager about your current home loan.
Its free to have a health check on your mortgage and see if there are any obvious saving to be made.
This could be as simple as combining your credit card with your home loan to use your cash flow for paying the bills later saving credit card interest.
Most mortgage brokers and all bank managers will have a mortgage payment calculator of some kind that can help you work out you budget or cash-flow projections.
This is fairly important to be able to work out what you can afford and how much you will be able to borrow in the future. The key to this exercise is being conservative, not overestimating what you may earn and not underestimating what your expenses are. Being left short with a loan you are legally obliged to pay is not a great start.
If you also decided to move homes or buy an investment property you might need to refinance to be able to draw out some equity to fund your next purchase. You current property may have grown in value enough for you to complete an equity redraw and use this capital to purchase another property or even transfer the borrowing power you have to another property. Effectively getting a new mortgage.
If you are unsure about your home loan options contact a qualified local mortgage broker to talk it through