Thinking of Refinancing your Loan? Let us Help You Do It Better Dec 11, 2018 | Home Loan Types While thinking of getting your loan refinanced, you must do some research and a little comparison-shopping just like you did while taking other financial decisions. Refinancing your mortgage at a lower rate allows you to transfer your loan from higher interest rate to one with a lower interest rate, thereby resulting in more manageable monthly payments. Refinancing your loan is always a good idea as it helps you save money, both in the short and long term. While Refinancing is advised, it more important to get it done at the best home loan rates. If your finances aren’t in a good shape, then you must start working on raising your credit score and reducing your debt load before stepping into the process. Given below are a few tips that will help you grab a better refinance rate for yourself- * Maintain your credit score- You must keep a check on maintaining your credit report in a good shape even before you apply for a refinance loan. Make sure that you pay all your bills, especially your mortgage on time. Your interest rate is directly proportional to your credit score. The better your score, the lower will be your interest rate. Make sure that you don’t open or close any other credit score during this time to avoid lowering your credit score. Moreover, if you pay bigger chunks of your credit card or other debt, your score will automatically boost. * Consider a shorter loan term- Borrowing a long-term mortgage that you’ve had for several years and then refinancing it to a longer duration will drag your mortgage debt and interest rate payments over a longer period unless you sell the house even before your term ends. However, you must know that a shorter-term loan will come with a higher monthly payment. To avoid this, you might consider refinancing a fixed-rate loan to an adjustable-rate mortgage. * Shop around- You must not only run behind big banks but also look up to small lenders to get a fair deal. Gather rate quotes from various lenders, starting with your current one and negotiate for a better refinance rate. You may also look for smaller banks and credit unions in your area who may offer you the best deal. Expanding your comparison-shopping from the largest to the smallest lenders will help you gain complete knowledge of the home loans Australia and grab the best home loan rates for yourself. * Look for the best refinance rate- Mortgage rates keep fluctuating in the short term. This can be due to reasons like major economic news, policy announcements or government reports. In such a case, it is important for you to grab the deal to refinance your owner occupied or an Investment loans at the perfect time so that you may lock in to beat the increase in the rate. To grab the best deal for refinancing your loan, you may get in touch with one of the lending specialists from Your Finance Adviser. We can help you to find the best deals to Refinance owner occupied and Investment loans at the most affordable rates of interest. Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.