You are pretty much guaranteed to refinance your home loan at some stage throughout

the loan term. It can happens to everyone, the roof is leaking, the credit card

bills are pilling up and it is almost time for a new car. But where are you going to

get the money to do all of these things? The need for extra cash can be very

frustrating and worrisome, however if you are a home owner you have a variety of

financial options available to you that you may not even be aware of. You should look

into refinancing as a viable option to solve your financial worries.

Why Should I Refinance?

There are a few reasons for refinancing your mortgage:

* To lower monthly payments
* To shorten the length of the mortgage
* To take advantage of low interest rates
* To finance a home project or renovation
* To consolidate bills
* Reduce Risk

Refinancing your mortgage can give you a lot of options as far as the freedom of a

little bit extra cash. There are a few different ways that you can go about

refinancing and the best way for you depends on what you are hoping to accomplish and

what your own personal situation is.

When should I refinance ?

The best time to refinance your mortgage is when you have outstanding personal debts

on higher interest rates, such as credit cards and car loans. This way you are able

to get your personal debt off these high interest rates of 16% and down onto rates of

around 7%. This results in a massive saving in interest as well as freeing up some

much needed cash flow for you and the family !

Refinancing is a great time to re-assess your loan structure, as it gives you the

opportunity to get your broker to shop around for Australia\’s best home loan. An

article on a refinancing blog

http://mortgagerefinance.blogharbor.com/blog/_archives/2005/3/29/488091.html

details a few of the reasons and benefits of looking at your refinancing options over

the net.

\”Online, you can view a lot of information very quickly. After looking at a few

mortgage loan websites, you will know quickly that when you refinance you have many

options. Do you want to get cash out of your home? Do you want to borrow more than

your homes current value? Do you want an interest only loan? And, you will know right

away which mortgage companies offer these options. There are many different kinds of

refinance loans, and all of these options can be learned after a few minutes of

searching online.\”

There are a few loan structures out there on the market, which will give you

exceptional flexibility and freedom. This means that you will never have to worry

about refinancing your loan down the track, which will potentially save you on

incurring more application fees, valuation fees, solicitor fees and stamp duty !

One of the latest stats in the mortgage industry is that the average Australian

refinances their home loan every 3.9 years. Now as we all know, banks are

exceptionally clever businesses. They are able to generate profits of up to $1

million p/hour per day.

During the first 5 years of your mortgage, the majority of your repayments will go in

interest (bank profit). When you refinance your home loan to purchase a car or go on

that holiday, the banks are quite cheeky as they reset your home loan clock back to

the start of another 25 or 30 year mortgage. Hence you start all over again, having

to pay back an obscenely large amount of bank profit (interest) for the first 5

years, and the vicious cycle begins again…..