Refinancing your home loan has numerous benefits but also some considerations to take note of which is why Free Yourself From Debt has created this article to inform you about debt consolidation in Adelaide.
What Is Mortgage Refinancing?
Will learning of this dull financial process actually improve my debt in Adelaide (it probably will)
Mortgage refinancing is—in short—a process handled by Free Yourself From Debt where you take out a second loan to pay off your first. This has several major advantages that can turn your debt situation around completely, so its imperative that you are aware of them:
Getting A Lower Interest Rate On Your Mortgage
This is one of the key ways that mortgage refinancing can save you thousands and thousands on your debt and get it paid off years faster.
Most people in debt have learned to abide the mantra ‘if it sounds too good to be true, it probably is’. But this is one case where it actually is true. The way that mortgage refinancing can save you so much money is that banks want one of two things:
- They want you to pay your debt back right now because they are worried that they will never get paid back at all.
- They want you to continue paying back your debt in instalments because it means that they get paid more in the end due to interest.
Hence if you are in either of the two cases of a high risk (a) or low risk debtor (b), your creditor will have incentive to improve the terms of your loan. They will either reward you for paying back your debt immediately or they will compete with other lending institutions for you to be their debtor. In the second case, lending institutions including your own vie for your debt by offering lower interest rates and other benefits.
Access Your Home’s Equity
When you owe money on your home, the amount that you owe doesn’t count as equity. You can’t use it in any financial negotiations with a bank such as applying for a loan to use in an investment.
However, when you refinance your mortgage, you purchase your house outright so all of it becomes your equity and this often makes future financial negotiations easier.
Access Additional Benefits Offered By Lending Institutions
This is a nice touch to the benefits that come with mortgage refinancing. When lending institutions compete for your debt they will likely offer you additional incentives (along with lower interest) to choose them. These benefits are actually usually more than a ‘nice touch’ which probably made you think of after dinner mints or a cherry on top. These benefits can include:
- A lower debt amount in total
- A ‘repayment holiday’—a break before repayments and interest starts
- An offset account
- Loan portability
How To Use Mortgage Refinancing For Debt Consolidation
How you can pay off your other debts at the same time—for added debt relief
This is where we explain how the affinity of mortgage refinancing comes into play. At the same time you refinance your mortgage (you take out a loan to pay off your mortgage), you can also pay off your other debts with that loan.
This extends the benefits of mortgage refinancing to your other debts. It can also reduce the hassles of multiple debts. Despite the financial nature of this topic, surely that sparks an interest.
What Are The Benefits Of Debt Consolidation And What Should You Know?
You could save thousands of dollars and an immeasurable amount of hassle, but you need to follow the budget
Debt consolidation is where you take out a new loan to repay multiple debts. Hence effectively combining them into one. Your mortgage can be paid off at the same time as your other debts, hence saving you the hassle of meeting multiple debt repayments around the clock.
In short: debt consolidation can reduce the interest on your debt. It can reduce your debt in total, it can save you a lot of time and hassle in managing multiple debts by having only one bill per month and save you thousands upon thousands of dollars.
Instead, Free Yourself From Debt negotiates and budgets with you to create a budget that you can easily follow to meet the monthly payments. These payments will be significantly lower than what you are paying now don’t forget. So as long as you stick to the budget, Free Yourself From Debt’s mortgage consolidation can improve your life dramatically.
Free Yourself From Debt Can Change Your Life With Mortgage Refinancing
We negotiate with financial institutions to get you the best deal on your debt
Don’t struggle under the burden of your mortgage and/or multiple debts for any longer. Free Yourself From Debt has too often seen cases of debt that doesn’t care about you, that never sat down and negotiated with you or your creditors. That’s why we decided to change that. Free Yourself From Debt can negotiate a loan situation that is adapted to your lifestyle and budget. And this means one with a low interest rate and the most benefits and debt reductions.
So to change your debt situation and your life call Free Yourself From Debt on (02) 9011 7919.