Make your mortgage work harder by refinancing
There are many reasons to consider debt consolidation or refinancing your mortgage, and it's always a good idea to have regular assessments with an expert as your life and circumstances change.
From our experience some of the main reasons people want to refinance include:
- Needing a bigger home as your family grows
- Renovating or adding value to your existing home such as with a new kitchen or bathroom
- Building a new home
- Getting a better interest and deal from another lender.
Using your home's equity to:
- Buy a business or an investment property
- Help one of your children buy their first home
- Maybe even do something fun like go on a world trip.
Whatever the reason, if your circumstances change and you need to make use of the value in your existing home, Taurus Home Loans can help.
To fix or not to fix, that is the question
No one has a crystal ball for interest rates so it can be difficult to make a choice between fixing or floating your mortgage.
Some will prefer the flexibility of a floating rate, meaning you can make additional payments to your loan and reduce it quicker. Others will want the comfort of knowing exactly how much is being paid off each month by fixing.
One good option is a mixed approach, or having a variety of mortgages at different rates and terms, and spread over fixed rates and floating. This can provide the best of both worlds by hedging.
This means you will still have surety about how much you pay each month, except for the floating portion and even if interest rates rise it will only affect part of your loan.
Our experts can help you choose the best option for your situation and find the right lender.
A revolving credit mortgage
This is a good way of saving money and paying off your mortgage quicker but it’s only for people who can stick to a budget.
This mortgage turns your home loan debt into a bank overdraft. Your pay is then credited against this overdraft to reduce the debt each month. By using a credit card to pay for any purchases the debt stays low.
If you then pay your credit card and mortgage repayments on one day each month, followed by your pay going into your account the next day, your debt stays lower for longer, reducing the amount of interest you pay in the process.
It works, as long as you pay your credit card off every month and avoid using your mortgage as a loan facility.
This structure has different names depending on the lender and only operates with floating rates. Taurus Home Loans can help to set this up if it suits your needs and you meet the criteria.
Get in touch with us if you have any questions about how refinancing your mortgage can work for you.