Refinance & Mortgage Review
Refinancing or restructuring your mortgage can save you thousands in interest payments and experienced Home Loan Advisor at Essential Mortgages & Insurance can review the ways that refinancing your mortgage could save you money and help you get on a more secure financial path.
Refixing your
Mortgage
Refixing a mortgage is a method of fixing your repayments so that you pay less each month, or lower your monthly payments. In return for your loyalty, the lender will freeze the mortgage rate at a competitive level. Talk to a our Mortgage Advisor to find out whether refixing your loan is the suitable course of action for you and your family.
Get a Pre-Approval & buy with confidence
If you’re not happy with your existing mortgage, researching the market could see you find a even a better deal or even lower your repayments. A mortgage refinance gives you more flexibility over the repayments on your loan and also over interest rate. It can help you pay off your loan quicker & reduce the amount you need. Our advisor will discuss all options & explain the benefits of each option before making any decisions.
Why Choose Us
Essential Mortgages & Insurance cover every aspect of getting a mortgage step by step, so you know what’s going on at all times. We consult you throughout the process and then sit down with you at the end to discuss all your options. We won’t let you sign up for a mortgage that may cause financial problems later on & you can trust us to make sure you have a stable financial future ahead of you, whether you’re buying your first home or looking to refinance.
Frequently Asked Questions - FAQ
What happens after refinance?
Following a refinance, a number of procedures and changes occur. First, the money from the new loan obtained through refinancing is used to pay off the current mortgage. This usually entails terminating the previous loan and initiating a new one with the terms—such as interest rate, term, and monthly payments—that were negotiated during the refinancing process. Following the settlement of the previous loan, the borrower starts making payments on the new loan in accordance with the specified terms. Depending on the borrower's objectives, refinancing may result in a reduction in monthly payments, access to equity, or a consolidation of debt. Thoroughly examining the conditions and expenses linked to refinancing is crucial to guaranteeing that it complements your financial goals and ultimately enhances your financial circumstances.
What is the risk of refinancing?
Although refinancing is frequently advantageous, there are risks involved that borrowers should weigh before moving forward. The possibility of long-term cost increases is one major risk. While refinancing may initially result in lower monthly payments or better interest rates, there is a risk that the total cost of the loan will increase if the term is extended or additional fees are incurred. Furthermore, it may be difficult to comply with the new loan terms following a refinancing due to changes in one's financial situation, such as a loss of employment or a decrease in income, which could result in financial strain or default. Furthermore, shifting market conditions might affect the future availability of advantageous refinancing options. When choosing to refinance, borrowers must carefully consider these risks in relation to the possible rewards and assess their financial status and long-term objectives.
How do you benefit from refinancing?
Homeowners may receive a number of important advantages from refinancing. First of all, it offers a chance to get a better interest rate than your existing mortgage, which can save interest over time and lead to smaller monthly payments. Furthermore, you can modify your loan terms through refinancing, such as going from an adjustable-rate mortgage to a fixed-rate mortgage, which will stabilize your monthly payments. Additionally, it allows you to access the equity you've built up in your house through a cash-out refinance or by lowering the interest rate on high-interest debt consolidation into your mortgage. Refinancing can also help you shorten the length of your loan, which will enable you to pay off your mortgage and increase your home equity more quickly. All things considered, refinancing can help you financially by reducing expenses, offering flexibility, and maximizing your mortgage to better suit your present requirements and objectives.
What happens when you refinance something?
When you refinance, you basically get a new loan with better terms and conditions to replace your current one, like a mortgage or loan. Refinancing is primarily done to increase financial flexibility, lower monthly payments, or save money. When you refinance a loan, you usually use the new loan, which you may get from the same lender or from a different one with different terms, to pay off the original debt. In this process, the interest rate may be renegotiated, the loan term may be extended or shortened, or the loan type may be completely changed (e.g., switching from a variable-rate to a fixed-rate loan). Refinancing can be a calculated financial move to reduce interest rates, gain access to asset equity, reduce debt, or enhance cash flow management.
What are typical refinance requirements?
Although typical refinance requirements can change based on the lender and the borrower's unique situation, lenders frequently take into account a few standard factors. First and foremost, borrowers must have a high credit score—typically one that is above a cutoff point set by the lender. Additionally essential to proving the borrower's ability to repay the refinanced loan are a stable income and employment history. To be eligible for a refinance, a homeowner may need to have a minimum amount of equity in their property, typically 20% of the property's value. Documentation such as bank statements, tax returns, evidence of income, and details of the property being refinanced may also be required of borrowers. In order to ensure that the borrower's monthly payments on all of their debts—including the new refinance loan—do not surpass a specific percentage of their income, it is crucial to meet debt-to-income ratio requirements.
Contact Experts Now
Let us introduce you to helpful experienced experts. We will set up meetings with a financial advisor who can offer you a huge range of mortgage, home loan and insurance options specifically tailored to your needs. Contact Us Now!
5/129 Great South Road, Papatoetoe, Auckland 2025
Monday – Sunday
09:00 / 19:00