Western Sydney mortgage broker, Shahzad Idrees, based in Ermington, has warned people who are thinking of refinancing their mortgage to carefully consider the loan term before committing to a change in their home loan.
“Often, I have clients who see how much lower their repayments will be if the refinance, “ said Mr. Idrees.
“But they have not really considered that they are suddenly taking a debt they’ve spent five years making repayments on, and spreading it back out over 30 years again.”
Mr. Idrees says that such a move may make monthly repayments smaller – in some cases significantly so – but that you may end up paying more out and take longer to do it than if you had stuck with your original home loan.
“That’s not to say that refinancing is not beneficial, it most certainly can be for some people in some situations,” said Mr. Idrees.
“You just need to be mindful of what you are doing and make sure you have a plan to make the most of the new opportunities for saving money that refinancing your home loan can present.”
Western Sydney mortgage broker, Shahzad Idrees, based in Ermington, has warned people who are thinking of refinancing their mortgage to carefully consider the loan term before committing to a change in their home loan.
“Often, I have clients who see how much lower their repayments will be if the refinance, “ said Mr. Idrees.
“But they have not really considered that they are suddenly taking a debt they’ve spent five years making repayments on, and spreading it back out over 30 years again.”
Mr. Idrees says that such a move may make monthly repayments smaller – in some cases significantly so – but that you may end up paying more out and take longer to do it than if you had stuck with your original home loan.
“That’s not to say that refinancing is not beneficial, it most certainly can be for some people in some situations,” said Mr. Idrees.
“You just need to be mindful of what you are doing and make sure you have a plan to make the most of the new opportunities for saving money that refinancing your home loan can present.”
Posted on January 19th, 2010.
Categories: Finance News, Mortgage Brokers. Tags: Home Loan, Mortgage, Mortgage Broker, Refinancing, Shahzad Idrees, Western Sydney.
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