How to Refinance a Home Loan

How to Refinance a Home Loan

Refinancing a home loan is performed for numerous reasons. But generally, it involves taking out a new loan to pay out your current home loan, whether with your existing lender or with a new one. For whatever reason, refinancing is frequently done by homebuyers.

Understanding Refinancing

Refinancing follows the same processes as applying for an initial loan. It may depend on your financial situation, but the process generally takes about four to eight weeks. When your lender determines that you are eligible for a loan, you may be offered a FASTRefi. 

FASTRefi is a speedy and unique refinance process that involves using title insurance to allow lenders to payout your loan account within days. It cuts through waiting for your current lender to process the discharge. 

However, even if FASTRefi slashes the time needed to refinance your loan, your lender can still make reasonable inquiries about your reasons for refinancing your current home loan. They may also inquire about the requirements, as well as verify your current financial situation. 

Refinancing Process

Refinancing your home loan follows a step-by-step process. But first and foremost, you need to decide whether it is right for you. Upon reviewing your financial situation and your current mortgage, we can explore your options and help you determine which is best for you. If it is refinancing, then you can begin the process.

First, find a home loan that suits your financial situation. Our brokers will browse through thousands of home loans and compare them with each other, weigh the pros and cons, and help you find the one that’s right for you. 

The next step works similarly to your existing home loan. After determining which home loan and lender you would like to apply for refinancing, it’ll be easier since you already know how to apply for a loan. However, if you do not want to be burdened with numerous documents and processes, your broker can do the job for you.

Your broker will assist you in every step of the process, including doing all the legwork. In addition, part of the process is your new lender revaluing your property. Once the papers are drawn, and you got your approval for refinancing, you’ll receive your settlement date. That will indicate when your new lender pays off your current loan, and you’ll receive your new home loan product.

Refinancing Your Home Loan

During the duration of your home loan, your financial situation may change for several reasons. You may have a new job or a new baby, pay additional school fees, or just want a better rate. 

When your financial situation significantly changes, you may want to revisit your home finances. Refinancing a home loan is a big move for many people, and many factors need to be considered. That includes fixed or variable interest rates, fees, and monthly payments. So before you decide, make sure you are prepared for the significant changes. 

Conclusion

The right refinancing will let you pay off your mortgage, clear your debt, and upgrade the value of your home. It is also one of the easiest ways to pay less on your mortgage. 

If you are looking for home loan refinancing in Perth, contact us today. All of the Finance Managers at FinanceCorp are fully qualified, trained, and experienced mortgage professionals who live and breathe finance. We make the process easy and hassle-free for you.