Compare the interest rate on your current loan with the rates being offered for refinancing. If the new rate is significantly lower, it may be worth refinancing to save on interest payments over the life of the loan.

Check if the new loan term is shorter or longer than your current term. Shorter terms typically mean higher monthly payments, but less interest paid overall, while longer terms may result in lower monthly payments, but more interest paid over time.

Consider all the costs associated with refinancing, including closing costs, application fees, and any other fees charged by the lender. Calculate whether the potential savings from refinancing outweigh these costs.

Determine how refinancing will affect your monthly mortgage payments. Will they go up, down, or stay the same? Make sure you can comfortably afford the new payments.

NOTE – monthly loan repayments, should be reviewed immediately with a view of moving to weekly or fortnightly as this will not only save thousands of dollars off a mortgage, but it can also reduce the loan by up to 5 years on a 30-year term loan.

If you have an adjustable-rate mortgage (ARM), check if refinancing into a fixed-rate mortgage makes sense for you, especially if interest rates are expected to rise in the future.

Assess how much equity you have in your home. Lenders typically require a certain amount of equity to refinance, so make sure you meet their criteria.

Your credit score plays a significant role in determining your eligibility for refinancing and the interest rate you’ll receive. Check your credit score and take steps to improve it, if necessary, before applying for refinancing.

Prepayment Penalties: Find out if your current loan has any prepayment penalties for paying off the loan early. Consider whether these penalties outweigh the potential savings from refinancing.

Determine how long it will take to close on the new loan. If you need to access funds quickly or have a specific timeline in mind, make sure the refinancing process aligns with your needs.

Consider your future plans and how long you plan to stay in the home. If you’re planning to move soon, the cost and hassle of refinancing may not be worth it.