Should You Be Refinancing Your Rental Property?
As with any investment, it is important to constantly be aware of any changes in the market or economic climate. The current market has changed dramatically with drastically reduced interest rates. If you are currently paying off your rental property you can potentially save thousands of dollars on interest by refinancing.
Lower Interest Rates
The number one reason you should be refinancing in current economic conditions is to take advantage of massively reduced interest rates. You can potentially save hundreds of thousands of dollars on interest with the help of our team who are highly experienced with refinancing investment properties. We’ll help you find the right loan for you but have you paying much less.
Lower Monthly Repayments
With lower interest rates come significantly lower monthly repayments. Refinancing also gives you the flexibility of opting for a loan with a later payoff date. The longer the loan term the lower the repayments can be, saving you hundreds of dollars a month on loan repayments.
Shorter Loan Term
Alternatively, if you would like to speed up your repayments and pay your loan off faster you can refinance to a loan with an earlier payoff date. Generally shorter loan terms have lower interest rates so if done right, refinancing to a shorter loan could still give you the same monthly repayments as longer terms.
Consolidate Your Debt
It is also possible to refinance to a debt consolidation home loan, where you move all your high interest debts such as credit card debt, into a single home loan where interest rates are generally lower. If you happen to have multiple high interest debts refinancing to a debt consolidation loan would save you significant amounts on interest.
Refinancing can be both a time consuming, and lengthy process but is well worth the effort if you are able to save money on the cost of your rental property.
If you would like to learn more about how refinancing your rental property could save you money, please get in touch with New Vision Financial Services today on 1300 422 506