A mortgage finance – the Christmas gift that will keep on giving
The best presents for Christmas are not always the ones squeezed into a stocking or wrapped up under the tree.
After another unprecedented year, the most cherished gifts this fast-approaching holiday season will be the time spent with loved ones, the opportunity to take a short vacation and the unique Yuletide traditions and memories we’ll all make with those closest to us. However, Christmas is also often a time when fiscal strains can magnify.
Therefore, if you haven’t had a mortgage health check in a while, one of the best Christmas gifts you can give yourself is to check in with a financial specialist such as AAP Finance about whether you should consider refinancing your mortgage. This strategy could save you plenty.
Check your interest rate
Many people don’t check their interest rates and therefore think they are getting a reasonable rate of 3%, especially if they have long memories of rates above 20% back in the late 1980s. However, even with rising fixed rates, many lenders still offer mortgages that start with a 2.
The fact is that you may not be getting the best rate in the market. Moreover, if you have an interest rate starting with a 3, by refinancing, you could get a lower interest rate and reduce your monthly interest repayments by hundreds of dollars, depending on the size of your loan.
This extra cash in your pocket could be helpful when the time arrives to pay off the Yuletide splurge or back to school costs. A lower interest rate on the mortgage will also save the family budget much more than phoning around to find a lower car insurance premium or energy or telephony tariffs.
Trim your debts with a consolidation
Refinancing can also help you consolidate liabilities such as credit card or personal loan debts that come with higher interest rates. As part of a refinance, you can roll your personal loan and card debts into your mortgage. This strategy can trim the interest you pay on your debts overall and help you pay them off faster, especially if you commit the extra savings to your debt reduction strategy.
After the last 18 months of record real estate price growth, a mortgage refinance could also unlock some of the equity in your home. This plan can be advantageous if you’re considering long-delayed home renovations and could mean that you can cater to more family and friends by next Christmas when it’s your turn to host the turkey lunch.
A finance specialist such as AAP Finance can help you re-evaluate your financial situation in the run-up to Christmas to determine if your current mortgage needs an overhaul or whether a different mortgage might suit your goals and circumstances better.
If you like the idea of a financial gift this holiday season, call us today as we will do all the refinancing spadework for you.