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What does refinance a loan mean?

refinance loan penrith _ Two Red Shoes mortgage broker

To refinance a loan means (often) to switch provider or lender in order to get a better interest rate and save money.

This works because loan products change and if your loan is more than 2 years old there’s almost certainly a newer loan which will suit your needs.

Armed with your loan balance and current interest rate your broker will compare mortgage rates across their panel of lenders – including your current lender – and tell you what you could save.

My typical borrower refinancing in Penrith is saving upwards of $2,000 a year in interest, anything under this saving and I will advise them of other options we can do to save money. In fact the greatest saving I have achieved (a very proud moment I can tell you!) was $22,800 per annum saving and to get started all it took was a call from the borrower to compare mortgage rates. And that’s just one loan refinancing example, I have plenty more stories of saving.

Often borrowers refinancing are looking at other benefits too. You might consider home loan refinancing if the loan structure no longer suits you. Or perhaps you want to release equity to buy a car or go on a holiday, do an extension or a renovation…

The process itself is simple and we handle the lot – from comparing the rates, collecting your data, liaising with the lender through to settlement we are here for the whole process.

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