Mortgage Refinancing – Benefits of a Lower Interest Rate

Refinancing a mortgage means transferring your current loan to a new bank offering better terms, such as a lower fixed interest rate. By doing so, borrowers can reduce their monthly payments and achieve significant long-term savings.

Current Fixed-Rate Mortgage Offers

At present (September 2024), fixed-rate mortgage interest rates range from around 6-7%. Compared to the higher rates seen in recent years, refinancing your mortgage to a lower fixed rate could be a highly attractive option for homeowners looking to reduce their monthly mortgage payments and save over the long run. Mortgage refinancing offers a path to substantial savings by locking in more favorable terms.

Benefits of Refinancing to a Lower Interest Rate

By transferring a higher-rate mortgage to one with a lower fixed interest rate, borrowers can significantly reduce their monthly obligations, bringing greater stability to their finances. Lower interest rates not only lower monthly payments but also allow homeowners to save substantial amounts over the life of the loan.

Example 1: One of our clients, with a loan amount of 711,000 PLN and a repayment term of 28 years, reduced their interest rate by 2.2%, lowering the monthly payment by approximately 1,000 PLN.

Example 2: Another client, with a mortgage of 492,000 PLN, reduced their interest rate by 1.7%. They maintained similar monthly payments but shortened the loan term by 6 years, saving approximately 160,000 PLN in interest.

Is Mortgage Refinancing Worth It?

Many homeowners wonder whether mortgage refinancing is worth it. The answer depends on individual financial situations. In many cases, refinancing to a lower fixed-rate mortgage can be extremely beneficial, offering not only lower monthly payments but also significant long-term savings. Consulting with a mortgage advisor can help you calculate potential savings and determine if refinancing is the best option for you.

Creditworthiness and Changing Interest Rates

Refinancing a mortgage requires sufficient creditworthiness, which we assess at the beginning of the process. Additionally, as interest rates may decrease further, refinancing provides flexibility. Mortgage refinancing allows you to transfer your loan multiple times as market conditions change, ensuring you always benefit from the best available rates.

Costs of Transferring a Mortgage to a New Bank

The primary cost of mortgage refinancing is the new bank’s loan origination fee. At POLASSETS, we select banks that waive these fees, allowing us to focus on maximizing monthly savings for our clients. Additionally, the cost of property appraisal and updating entries in the Land and Mortgage Register are covered by us, making refinancing hassle-free and cost-effective for our clients.

Contact POLASSETS for Mortgage Refinancing

If you’re interested in exploring how mortgage refinancing can lower your interest rate and save you money, get in touch with us:

📞 +48 71 707 00 26
📧 info@polassets.com