people in meeting

People refinance mortgages for plenty of reasons, but many still don’t because of some common misconceptions surrounding it. That can be a problem because homeowners could miss out on better opportunities and mortgage options if they don’t understand the truth behind the process.

Yes, financing matters can be complicated and a chore, but it’s necessary, especially if you’ve got mortgages to pay. That’s why it’s better to know the truth about refinancing. 

These are the common misconceptions about refinancing and the actual truths behind them:

Refinancing Involves Paying Huge Exit Fees

One of the main reasons people hesitate to refinance mortgages is that they think they need to pay a huge exit fee. Not to mention, it’d be an awkward conversation to have with their mortgage lender. 

While it could be a challenging discussion to have, you won’t necessarily have to worry about huge exit fees. In fact, lenders aren’t permitted to charge you an exit fee unless you’re on a fixed-rate loan.

Refinancing is Complicated

Financing can sound complicated. However, the good news is that refinancing doesn’t have to be. That’s why you’ve got loads of professionals who can help you out. They make the process pretty simple and fast enough that you won’t have to make numerous returns to your existing lender and the bank you want to work with. 

All you have to do is meet with a lender, provide some necessary information and documentation, and then sign the contract.

Refinancing is Only for Getting Better Rates

Some people refinance mortgages because they want to get better rates. However, if you’re not looking to do that, you can still refinance for different reasons. Others do it because they disagree with their bank’s values and political stance. That’s a valid reason to switch lenders. 

Others do it because they want to consolidate existing debt, save more money, or get into a longer-term loan. The reasons are endless, and you can share your reasons with your lender.

Refinancing Requires Professional Knowledge

People often think twice to refinance their mortgage because they think they need to be professionals at this or, at the very least, have extensive knowledge of the process. However, that couldn’t be farther from the truth. It’s perfectly fine to go into a meeting with your lender with some questions. Part of their job is to explain the process and let you know what all your options are. 

However, make sure that you trust the establishment you’re working with to ensure you’re getting all the information you need. It wouldn’t hurt either to do some initial research on your own. You can also ask your friends and family for some advice and recommendations regarding the decision to refinance your mortgage.

Conclusion

Refinancing doesn’t have to be a complicated and daunting process that a lot of people make it out to be. Yes, it’s intimidating handling matters of money, but that’s why you have professionals in the field. They’re there to help and give you the best advice that fits your situation and needs.

If you need to refinance a mortgage, Wealthy You is an Australian mortgage company servicing Sydney for almost a decade. We offer a variety of mortgage solutions and ensure to make the process simple and easy to understand for all our clients. Get in touch with us today for more information!

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