I am amazed that people in general have little knowledge of the importance of cash flow management and lifestyle management in obtaining the best result from mortgage refinancing. The resultant improvement in cashflow achieved from a well planned mortgage refinancing, when wisely spent or invested can have a major impact on our finances and future lifestyle.
Hesitation in Mortgage Refinancing
Most of us dream of owning our home sooner rather than later and would like to live a comfortable lifestyle pre and post retirement supported by an accumulation of assets, superannuation and/or savings.
So I was baffled by a recent finding which revealed that 1 in 3 homeowners are decisively unhappy with their home mortgage loan and/or home mortgage loan lender, however they are doing nothing about it. They are prepared to sit and bear the cost of an inappropriate home mortgage loan.
Maybe the uncertainty of mortgage interest rates, weak government policy and/or negative media of the major home mortgage loan lenders has people hesitant, or maybe there is a hangover of dissatisfaction from a previous mortgage refinancing and/or feeble refinance mortgage broker service.
The major concern is that the hesitation shown by these homeowners towards refinancing their mortgage to another lender or trusting another refinance mortgage broker could be costing them a considerable amount of money.
Some reports have it that the minimal improvement or change in financial position experienced by homeowners following a previous mortgage refinancing may have created a distaste of mortgage refinancing or loathing towards their home loan lender and/or mortgage loan broker.
Homeowners Attitude towards Mortgage Refinancing
Of those homeowners surveyed;
• 46 per cent are pleased with their previous mortgage refinancing, home mortgage loan and/or refinance mortgage broker service.
• 31 per cent are thinking ‘refinancing mortgage’ but only 2 per cent are actually doing something about it! That means 29 per cent know their home mortgage loan is not suitable but are hesitant to make a move towards obtaining a better one.
• 65 per cent put forward exit fees and refinancing mortgage costs as the major deterrent to switching lenders.
Kevin Roby, Senior Mortgage Planner and Professional Credit Adviser at Community BEST Home Loans believes there to be a distinct link between the actions and thoughts of homeowners / borrowers and that of current media reporting. He also believes that many borrowers do not truly understand the full benefits of mortgage refinancing in contrast to the cost of exit fees, as the complete table of benefits are not being wholly disclosed within the mortgage negotiations and/or presentations of an average mortgage loan broker or mortgage consultant.
Of course, exit fees and refinance costs at times can be steep, but generally they are reasonable and manageable when dealt with effectively within a professionally structured mortgage refinancing plan. A well structured mortgage refinance will invariably negate the costs associated with refinancing as well as the need for future mortgage refinancing.
As a standard component of a mortgage refinancing plan, a professional refinance mortgage broker and/or mortgage planner will work out and highlight in detail the immediate and future benefits as well as potential savings associated with any mortgage refinancing. It could well be that within a few months on a new home mortgage loan the savings alone will outweigh the costs.
Mortgage Refinancing Paperwork
Another surprising reason thrown up by some homeowners as to why they will not take the steps towards mortgage refinancing is the ‘terrible ogre’ of paperwork!
Apparently, the perceived paperwork involved in switching their mortgage is so off putting that they are prepared to wear the cost of thousands of dollars of unnecessary mortgage interest charges.
What’s really crazy is that the amount of paperwork required by the homeowner for a mortgage refinancing is actually very minimal. The onus of paperwork rests mainly with the mortgage loan broker and he or she will supply that part of their service for free. Other professionals who offer a higher grade mortgage refinancing service and who can also assist with the preparation of paperwork are specialist refinance mortgage brokers and mortgage planners.
For anyone who is unhappy with their home loan or is unsure whether their homeloan is ideally suited to their needs, all they need do is invest a little bit of time with a mortgage loan broker, refinance mortgage broker or mortgage planner and then just sit back and see what better home mortgage loan deal is out there.
To find out what benefits Mortgage Refinancing may offer you, contact our Finance Centre and make an appointment to speak with one of our Refinance Mortgage Brokers. Phone 1300 448 911 or email us with a preferred time for us to contact you.