Understanding Mortgage Refinance and Refix
What is Mortgage Refinancing?
Refinancing involves replacing your existing mortgage with a new loan, often with better terms or a lower interest rate. This can lead to significant savings over the life of your loan.
Benefits of Refinancing:
- Lower interest rates
- Reduced monthly payments
- Shorter loan term
- Access to home equity
- Debt consolidation
What is Mortgage Refixing?
Refixing your mortgage means adjusting the fixed interest rate period of your existing loan without changing lenders. This can provide stability in your repayments and potentially secure a more competitive rate.
Benefits of Refixing
- Predictable repayments
- Protection against interest rate increases
- Potential for lower interest rates
- Maintain relationship with current lender
The Fundmaster Advantage in Mortgage Refinance and Refix
At Fundmaster, we understand that every homeowner’s situation is unique. Our experienced advisors provide personalised guidance to ensure you make the best decision for your financial future.
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We thoroughly analyse your current mortgage, financial goals, and market conditions. Our team examines your existing loan terms, credit profile, income, and expenses. We also explore your short-term and long-term financial objectives, such as reducing monthly payments or accessing equity. This holistic approach ensures we have a complete picture of your financial situation.
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Based on our comprehensive review, we develop tailored refinancing or refixing solutions that align with your unique needs. We create multiple loan scenarios, considering factors like interest rate types, loan terms, and special features. Our team identifies lenders whose products best fit your situation, ensuring you have a range of suitable options to choose from.
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We believe in empowering you with knowledge. Our team breaks down complex financial terms into plain English, using visual aids when necessary. We clearly explain the pros and cons of each option, demonstrating how different choices could impact your finances over time. We encourage questions and ensure you fully understand each possibility before making a decision.
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Leveraging our relationships with over 15 lending partners, we negotiate on your behalf to secure the best terms possible. Our volume of business often allows us to access exclusive rates and deals. We advocate for fee waivers and, in unique situations, can sometimes negotiate exceptions to standard lending policies. Our goal is to use our industry connections to your advantage.
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Once you’ve chosen the best option, we manage the entire process from application to settlement. We prepare and submit your application, liaise with the lender, and provide regular progress updates. Our team coordinates with all parties involved to ensure a smooth transition. Even after settlement, we remain available to answer questions and provide ongoing support.
Why Choose Fundmaster for Your Refinance or Refix?
- Expert Knowledge: Our advisors stay up-to-date with the latest market trends and lender policies.
- Holistic Approach: We consider your overall financial picture, not just your mortgage.
- Time and Stress Savings: We do the legwork, saving you hours of research and negotiation.
- Access to Multiple Lenders: Compare options from various lenders to find the best fit.
- Long-term Support: We’re here to help you manage your mortgage throughout its lifetime.
Strategies to Pay Off Your Mortgage Faster
When you first take on a mortgage, it can feel like you are binding yourself to a lifelong commitment. But you can cut your debt expense sooner than you think. There has to be some careful planning to achieve a fast repayment. Don’t worry, though; the strategies we are going to propose are easy to execute.
Start Your Journey to Financial Success
Ready to take the first step towards your financial goals? Whether you’re looking to buy your first home, refinance your mortgage, or seek expert advice on insurance and business loans, Fundmaster is here to help.
Don’t wait to secure your financial future. Reach out to us today and let’s start building your path to prosperity together.
Refinancing involves moving your mortgage to a new lender, often to secure better terms or interest rates. This process typically requires a new application and property valuation. Conversely, refixing means staying with your current lender but changing your interest rate terms, usually at the end of a fixed-rate period. Refixing is generally more straightforward as it doesn’t require a new application. Both options can save you money, but the best choice depends on your circumstances and current market conditions. At Fundmaster, we can help you evaluate whether refinancing or refixing is more beneficial for your situation.
Several situations might make refinancing a good option. First, if interest rates have dropped significantly since you took out your mortgage, refinancing could lead to lower repayments. Second, if your credit score has improved, you might qualify for better rates. Third, you might want to change your loan terms, such as switching from a variable to a fixed rate. Fourth, if you need to access home equity for renovations or other significant expenses, refinancing could help. Lastly, if you want to consolidate debt, refinancing your mortgage might offer lower interest rates than other forms of credit. However, it’s essential to consider the costs of refinancing against the potential benefits. Our team at Fundmaster can help you assess if the time is right for you to refinance.
You can refix your mortgage at the end of each fixed-rate period. These periods commonly range from 6 months to 5 years, depending on the terms you’ve agreed with your lender. Some lenders may allow you to refix early, but this often incurs break fees, which can be substantial. Refixing too frequently’s generally not advisable, as you may miss out on the benefits of longer-term rate stability. However, more frequent refixing might be beneficial in a falling interest rate environment. At Fundmaster, we can help you strategise the best refixing schedule based on your financial goals and market conditions.
Yes, refinancing usually involves several costs. These may include legal fees for updating the mortgage registration, valuation fees if the new lender requires a current property valuation, and potential break fees if you leave a fixed-term mortgage early. Some lenders charge an application fee, although many waive this for refinancing. If you’re increasing your loan amount, you might also need to pay for Lenders Mortgage Insurance. However, many lenders offer refinancing packages that cover some or all of these costs, especially for larger loans. It’s important to calculate whether the long-term savings from refinancing outweigh these upfront costs. At Fundmaster, we can help you understand all potential costs and find lenders offering competitive refinancing packages.
Refinancing typically takes 2 to 6 weeks, depending on various factors. These include the complexity of your financial situation, the lenders’ efficiency, and whether a property valuation is required. The process begins with gathering your financial information and submitting a new loan application. If approved, your new lender will prepare loan documents for you to sign. They’ll then work with your current lender to discharge your existing mortgage and register the new one. The process can be pretty smooth if you’re well-prepared with all the necessary documentation. At Fundmaster, we manage this process for you, liaising between lenders to ensure everything progresses as quickly as possible.
Frequently Asked Questions
General Enquiries
0800 386 362
deals@fundmaster.co.nz