This is the question every intelligent home owner should be asking themselves at regular intervals throughout the entire period of their loan. The answer is always the same... ... NOW! So long as you do your homework and determine whether the benefits of a better interest rate package outweigh the costs and fees involved in transferring to a loan, you should always be on the lookout. To do this, the intelligent investor will have all the information regarding interest rates, exit fees and start-up fees (which we look at in a minute) in addition to ongoing fees, etc at their fingertips. This can often be time consuming and, let's be honest, a bit of hard work but if you do the groundwork, the rewards can add up to thousands and thousands of dollars in savings.
Loan Detective takes a lot of the hard work out of it and can provide you with most (if not all) of the information you need. Ok ... so where do you start? First, you need to ask your current lender for a detailed description of all the costs involved in leaving your current loan (known as exit fees). The next step you need to take is to ask the lender you are thinking of refinancing with to detail all of the start-up costs. These are usually legal fees, valuations costs, application fees and stamp duty on the mortgage. Once you have this information at hand (and remember, most of this you can get right here at Loandetective.com.au) you are ready to decide whether refinancing is right for you. Remember, so long as the benefits outweigh the costs, you should refinance.
Many home owners get used to their own lender and have the false perception that refinancing involves too much work and the rewards are not worth it. Over a 25 year mortgage, a quarter of a percent can take years and indeed thousands of dollars off your home loan!