Top Ten Errors In Refinancing
A List Of Common Refinancing Mistakes
This list should thoroughly expose you to the errors that people commonly make when refinancing. With this information in hand, and armed to the teeth with the mistakes of others, you should succeed overwhelmingly when you’re trying to refinance. Here is a list of the top ten common mistakes so you know what not to do.
- Choosing to go with your current lender before shopping around the market to refinance
- Thinking that lower rates equates to automatic savings without figuring in the overall cost versus all the savings
- Waiting to apply for a home loan that will come in tandem with lower interest rates. Don’t gamble your life on better interest rates.
- Not getting your low interest locked down in a written contract
- Not doing the proper math and neglecting small cost savings like an interest rate that is reduced by .75% to 1%. That will save you about $100/month on a total $150,000 mortgage.
If you’ve been reading so far, you might have been aghast at how easy it is to get bad deals on refinancing. The novice will fall victim to at least one of these mistakes if they don’t know anything about the fine art of refinancing.
Additional Refinancing Errors
The above list includes the most common refinancing errors, but there are still more. Read on to discover some of the errors that even seasoned pros make.
- Some people switch loans or lenders without thinking about the total costs in savings. Interest savings are one thing, but there are also fees for establishment, legal, stamp duty, and ongoing costs.
- Not getting a lender or broker to revise your financial standing based on your credit rating. Operating from an erroneous credit position can put you in danger o getting worse rates.
- Underestimating the true cost of refinancing is another common error. There should be written statements on fees for applications, deferred establishment fees, and break costs on loans that are fixed.
- Jumping in on the honeymoon rates is something that amateurs often do. They will go for a loan based on the low interest rates but not realize that the interest rates jump back to an original or higher rate after the introductory period ends.
- Taking out additional money to pay off credit cards without any intention of ever paying the money back will make further debts while taking more money out of home equity. Don’t transform a short-term debt into what could become long-term debt.
These errors are hard to keep up with, but you should go into any loan situation with this list in hand. It could save you a lot of money and years of trouble.
Featured Refinancing Home Loan Options
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 State Custodians Mortgage Company Breathe Easy Offset Loan |
Awarded Best Non Bank Basic Variable of 2011 this fantastic loan rewards customers with no fees and a range of features to keep repayments flexible. | 6.27% | 6.18% | $0 / $0 | 95% | $150,000 / $1,000,000 |
 
|
 Loans.com.au – Dream Loan Express – Variable Home Loan (80.01% -95%) |
A home loan offer with $0 application fee and one of the lowest available home loan interest rates in the market. | 6.20% | 6.22% | $0 / $0 | 80.01% – 95% | $50,000 / $750,000 |
|
 Illawarra Home Loans Bank Beater Home Loan |
Pay off your loan faster with a low variable rate and a further rate cut by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
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Don’t Make Dumb Refinancing Mistakes
Even smart people can do stupid things when they’re confronted with the enormous task of refinancing. Check everything you do against the list herein contained.
Related posts:
- How to spot Errors in Loan Statements
- Weighing Up The Costs Of Refinancing
- Refinancing Closing Costs
- How Mortgage Brokers Can Help with Refinancing
- Refinancing Risk
- Best Refinancing Loan
- Costs of Refinancing
- Refinancing Interest Rate
- Exit Fees And Refinancing
- Is Refinancing Worth it
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
State Custodians Mortgage Company Standard Variable Offset Loan | Awarded Mortgage of the Year 2012 – this multi-award winner features 100% offset and a loyalty 0.25% rate drop after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
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