Mortgage Refinancing Sydney Debt Consolidation Solutions
Refinancing you home loan is done by people for a number of reasons, but here at Free Yourself From Debt Sydney, our main purpose of helping you refinance to consolidate your debts into easier payments. Find out more below.
What is Mortgage Refinancing?
What are the reasons for choosing to refinance your mortgage in Sydney?
Put simply, a mortgage refinance is taking out a second mortgage of the same amount to pay off your first mortgage. This is done for a range of reasons and can have massive benefits to you if done correctly.
Getting A Better Interest Rate
The biggest reason people choose to refinance their home loan is to get a better interest rate on their loan. This can be done through another bank or through the bank you currently have you loan with. Banks will often try to keep their customers especially if you have a good history of paying back your loan, this means they could offer you extra benefits or a cheaper rate compared to other banks.
Access The Equity In Your Home
Another reason is often to access the equity in your home. Equity is the difference between how much your home is worth and how much you still owe on your mortgage. Renovating your home can increase the equity available from your home, but the main way to get equity is to pay down your loan. Often your home can also increase in value, meaning you are able to access the equity from the increased value. You must remember that this will increase your loan and your monthly repayments.
To Access Home Loan Benefits
When you first start out on your home loan you may not consider the benefits that can come with one. However, if you refinancing you mortgage you can have access to a number of benefits that banks offer. This includes things like an offset account, repayment holidays, flexible repayments and loan portability. Ask you bank about added benefits of refinancing your home loan to get some great added extras on your account free of charge.
Using Mortgage Refinancing To Consolidate Your Debts
You can use mortgage refinancing to consolidate and pay off your debts
Free Yourself From Debt Sydney can help you refinance for the purpose of consolidating and paying off your debts. How does this work? When you refinance your mortgage you are doing so to secure a better interest rate. However, you can consolidate or add you other debts to your mortgage. You borrow the full amount you owe to completely pay off your debts, then all your debts will have a lower interest rate. We can also help negotiate the cost of your debt with your creditors, helping to lower your debt to an amount that you are able to pay off.
Why Should I Consolidate My Debts?
You could save thousands of dollars, but need proper budgeting and payment structures
As mentioned above, when you consolidate your debts into your home loan, you are securing a lower interest rate for all your debts. You are also making payments easier by having all your debts in one easy payment. There are risks when consolidating your debt into your mortgage. Doing this will increase the size of your mortgage, so unless you have a proper budget and payment plan you could end up paying more in the long run. It is important that you have a budget in place as if you don’t it isn’t worth repaying your mortgage. Free Yourself From Debt can help you come up with a budget plan to pay off you debt quicker and at a lower price.
Debt Negotiation Solutions
Using debt negotiation to get a better deal on you mortgage refinance
At Free Yourself From Debt, we negotiate with your lenders and creditors to lower the amount you will need to repay. We judge your financial position and get you the best deal possible for your circumstances. This is useful when refinancing your mortgage as it means you won’t be adding your full debt to your mortgage. Using the money you get from refinancing you home loan, you will be able to pay off your other debts giving you a better bargaining position when negotiating with your creditors. Call Free Yourself From Debt Today to find out more about or debt negotiation service on (02) 9011 7919.