Monday, 10 October 2011

Why Refinance

WHY REFINANCE?

•    CHANGING FROM A NON-BANK TO A BANK OR FROM ONE BANK TO ANOTHER-PERSONAL SERVICE,POLICY GUIDELINES ARE DIFFERENT
•    UNHAPPY WITH CURRENT PROVIDER FOR VARIOUS REASONS INCLUDING:
•    BETTER INTEREST RATE-PAYING HIGHER RATES CURRENTLY
•    BETTER OVERALL LOAN STRUCTURE (FLEXIBILITY TO CHOOSE BETWEEN FIXED & VARIABLE RATE LOANS)
•    ABILITY TO MAKE SOME EXTRA REPAYMENTS
•    BUYING ANOTHER PROPERTY
•    HELPING A FAMILY MEMBER BUY A PROPERTY
•    BORROWING ADDITIONALLY TO – RENOVATE/UPGRADE/EXPAND/BUILD/IMPROVE
•    DEBT CONSOLIDATION – CAR LOAN,C/C,HP,PERSONAL LOAN,OTHERS

THERE ARE A FEW OTHER REASONS. WHEN CONSOLIDATING DEBT –WHETHER REFINANCING OR NOT- NEED 6 MONTHS REPAYMENT HISTORY OF LOANS BEING CONSOLIDATED/REFINANCED

SHOULD HAVE SUFFICIENT EQUITY TO BORROW ADDITIONALLY

SHOULD HAVE ENOUGH INCOME TO SERVICE ADDITIONAL BORROWINGS

IS PROPERTY ACCEPTABLE TO NEW LENDER?   

COSTS INVOLVED: EARLY REPAYMENT FEES IF ON FIXED RATE TERM OR EARLY EXIT FEES IF WITH A NON-BANK LENDER (CHECK LOAN TERMS), ADMIN FEES, VALUATION, SOLICITOR, and NEW SET-UP OF
AP ‘S, LENDER’S FEES, LOW EQUITY PREMIUM IF LVR OVER 80% 

SOME OF THE COSTS ARE EXPLAINED

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