Using a mortgage broker to refinance can be a good idea for a number of reasons. First of all, there will be the option to consolidate any of your existing loans into a more appealing deal. Next, there’s the ability to take advantage of the cheapest interest rates on the market. Finally there will undoubtedly be the option to use your brokers’ negotiation skills to help you to source a much more comfortable repayment option when dealing with your mortgage.
Consolidating your existing loans
Plenty of people overlook the potential to consolidate loans into one lump sum each month – and this is something that’s widely available when considering refinancing your mortgage. If you have a car loan, a home loan and a personal lending plan in place with any number of lenders; the chances are that you will be repaying what you’ve borrowed with separate amounts of interest, too. Instead of doing that, a mortgage broker could help you to come to an arrangement whereby you only pay back one loan that comprises all of the above, whilst saving you money on interest.
Comparing interest rates
One of the most common reasons that could lead a home owner to consider refinancing their mortgage is the potential to take advantage of lower interest rates. Rates can be prone to fluctuation every so often and if you’ve been paying back a fixed rate that’s now higher than the average percentage – you might want to consider your options. Where a mortgage broker comes in is in their ability to compare the different rates of interest on the market to help you to choose a fresh deal that could save you money.
Negotiation a fairer deal
Whilst on the topic of negotiation, it’s worth noting that most banks will consider new deal proposals from their customers – especially if they are backed by a trusted mortgage brokering agency. If you’re repaying a specific percentage on your interest rate then a broker might be able to negotiate a fairer one for you. Alternatively, your loan might be subjected to a couple of features that seemed good at first, but ended up being a nuisance or an expense. In these instances, your home loan broker could negotiate a more comfortable option for your needs.
A good broker can go a long way, with a variety of options to choose from and a range of services to take advantage of to help you to save your hard earned cash.