Consider refinancing your home loans

You can save money if you refinance your mortgage to another loan with a better rate.

There are some great options out there to cut down on your monthly mortgage payments without spending hours studying 'How to Mortgage' books.

By doing your homework, and searching online with search terms such as ‘mortgage mortgage’ and ‘mortgage in’ you might be surprised to see just how much you can save on your monthly home loan repayment and find what mortgage is right for you.

Why consider refinancing

You can save money if you refinance your mortgage to another loan with a better rate. This involves actually leaving your current home lender and going with another one that offers a lower interest rate.

Loan home interest is calculated daily, and divided by 365 days in a year, so the lower the interest rate the more money you can pay off your mortgage and the less time you stay in a home with loan.

A successful refinance to a lower interest rate can save thousands of dollars over the life of a loan. Try to search for a mortgage and calculator to see how much you can save. A successful refinance will afford you the instant benefit of lower monthly payments.

How to refinance

Shop around online for rates. Use general search terms, such as ‘Find me a home loan’ or ‘loan and home and interest’, or ‘cheap home loan rates’.

Specifically, look at loan terms such as associated fees, interest rates, repayment terms, and customer service. From there, it is a good idea to use a home mortgage repayment calculator to find out how much your monthly payment would be with that specific loan term. Just search for ‘mortgage and calculator’ or ‘calculator for mortgage’.

Some lenders make it difficult to find their rates online. That is because the rates are usually higher and they want you to phone instead.

Of course, you will also need to go through the process of applying for the refinancing with your new lending company. This will likely mirror the same process that you went through to get approved for your initial home loan. Once you are approved, you will be amazed at how much you can save and begin reaping the benefits right away!

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