Refinancing

Usually, people think of refinancing due to various reasons. And some of the reasons would be,

• When the interest rates and their personal circumstances change
• If they are looking for a better home loan, etc.,

There are also cases where people don’t give a thought about Refinancing. They just fix the loan amount to be paid each month for a period and remain constant. However, if you consider Refinancing option, you could potentially save a fair amount.

Well, would you like to know more about Refinancing? Here we go...

Refinancing is nothing but reorganising your loan structure by transferring your loan from one lender to the other where you can enjoy the benefit of having more favourable terms and conditions that are in your best interest.

It is also to make your loan more flexible by having a floating interest rate or a combination of fixed and floating interest rate unlike having only fixed interest rate.

The facility is available for anyone with a mortgage.

Fixed & Floating Interest Rate

Interest rates being one of the major considerations for a customer to decide while refinancing, is important that one should have a better understanding about.

Having fixed interest rate and fixed monthly repayment is a stress-free job which one can do peacefully without paying attention to it.

Though fixed repayment amount gives you peace, there are a few disadvantages in it. Like,
Fixed rate home loans have less flexibility compared to variable/floating rate home loans. For example, in case if there is a fall in the interest rate in floating rate home loans, you may end up paying more and miss an incremental saving if you opt and stick on to the fixed rate home loans.

And undeniably, if there is an increase in the interest rate you may end up paying more in floating rate home loans. And hence they have designed a better option where you can combine both fixed and floating interest rates. This gives a vague picture of how much you need to pay every month, allowing you to take an advantage of both fixed and floating interest rates.

Other considerations while Refinancing

There are other points to be considered before refinancing your mortgage.

• Look out for the better loan with competitive interest rates, low fees and loan flexibility
• Make sure you get the right loan structure which matches your financial situation
• Check out the entry / establishment fees on the new loan before refinancing
• Entry and exit fees are common in refinancing. Also check the exit fees from the current lender before switching the lenders

Considering all these factors, refinancing your mortgage seems not to be an easy task. It makes sense to take an advice from the expert who is well versed in finance mortgage.
We at Amazon Finance, help you do all the sums, analyse your loan structure and the costs involved in refinancing, review your financial condition and check if refinancing works at your best interest.

If you are planning to refinance your mortgage from your current lender, contact our experts today, as we constantly work with the lenders and proffer you the best deal.