No matter who you are, what your income is like, or where you live, your mortgage is probably your largest expense and one that you need to take most care with. Perhaps you have been in your home for a while, your financial position has changed, you have new business plans, or perhaps there is a change in your family circumstances – it may be a good time to consider mortgage refinance.

So what should you look for when REFINANCING YOUR MORTGAGE? Are there any tricks or tips that you should be aware of in making the final decision? Here are some of the key issues that you should bear in mind when deciding to REFINANCE or NOT REFINANCE:

Below are some tips you can follow to make a start towards financial freedom:

MORTGAGE REFINANCE COSTS

Please consider all the refinance costs not just the difference between your current interest rate and the rate you will be paying on your new mortgage.
Many lenders will levy mortgage discharge fees. Depending on your original mortgage contract these costs may go into many thousand of dollars. If you are intending to keep your new mortgage for a number of years this may be worthwhile.

DEBT CONSOLIDATION AND MORTGAGE REFINANCE

If you are the proud owner of numerous credit cards, a car loan, personal loans as well as a mortgage, you have probably considered Debt Consolidation. Home owners with equity in their home can do no better than consolidating their unsecured debts into their existing mortgage. This can allow you to pay home-loan interest rates on all your other debts. In doing so you will be cutting your monthly repayments hence allowing you to put more money aside for reducing your mortgage.

TRUE COSTS of YOUR NEW MORTGAGE

When comparing home loans it is critical that you look at the Loan Comparison Rate not just the advertised rate. Some of the advertised rates can be misleading as they do not include all the loan fees and charges. If you are considering refinancing to a Honeymoon product, please be aware that a rate which looks like 5.99% in your first year may become more like 7.5% by your second year.

MORTGAGE REFINANCE vs PERSONAL LOAN

You may be quite happy with your mortgage but would like to some extra funds for a holiday, home renovation, a car, a wedding or any purpose at all. Have you considered getting a Line Of Credit or a Mortgage Refinance to gain access to the available equity in your mortgage. Of course, you may choose to take out a personal loan for the same purpose. However your monthly repayments will be much higher than using the equity in your home to do the same.

Naturally the choice of Mortgage Refinance vs Personal Loan does hinge on the amount of funds you require. If you only need $4,000, then in some cases getting a Personal Loan may be a cheaper option. This will depend on the flexibility in your current mortgage and the costs you will incur if you wish to revalue and get more funds out or refinance to another lender.