The Best Time to Switch to a New Home Loan
Switching loans or refinancing your home is a big decision to make, especially if you are unsure about the terms of a refinancing agreement.
The Existing Interest Rate is Too High
When you originally signed up to your existing home loan, you might have thought your interest rate was a good deal and signed a fixed rate contract to ensure that you could keep paying off that seemingly low rate loan.
However, if your lender brings out a new package with an even lower interest rate, it can be tempting to refinance and reap the benefits of a cheaper overall loan. Just be careful and ensure that the loan you are switching too really is a better deal. Look at additional fees and other terms of the loan before you make any decisions.
When you signed up to a home loan, you may have done everything by the book and made sure you looked at your income and outgoings before deciding which type of loan would suit you best and how much you could realistically pay back over a repayment period.
If you are earning less when you originally sign and cannot afford to pay off your loan as before, refinancing means you might be able to switch to a different loan with lower monthly payments but a longer repayment period.
I Want to Switch Loan Company
There are always going to be more appealing interest rates elsewhere - that's what loan companies are there to do - draw you in. What you need to decide is whether the lower interest rate of another company is worth the risk of harming your credit rating.
Thanks for reading: The Best Time to Switch to a New Home Loan
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