This amount is higher than the $414,202 a year ago and the December 2010 NSW average is the highest among all Australian states and territories. Interest rate hikes and the mining tax brought financial volatility in the market. However, the rise of smaller lenders will increase market activity.

In December 2009, only two percent of all mortgages where fixed rates. One year later, the share of fixed rate mortgages jumped close to 13 percent. The big increase can be attributed to fear of future interest rate hikes causing borrowers to shop for fixed mortgages. Meanwhile, building approvals in November 2010 went down by 4.2 percent and close to ten percent throughout 2010.

However, the effects of the Reserve Bank official cash rate hike last November have not taken full effect. The housing market can expect more woes during the early part of 2011. Building approvals in New South Wales and Tasmania went down by 13.4 percent and 15.6 percent respectively. Building approvals in Western Australia increased by seven percent.

When you refinance your home loan, you obtain a new loan to replace your existing one. The new loan uses the same property as collateral. When you are considering mortgage refinancing, you must review your current home loan and then determine the reason for obtaining a new loan.

Why should you refinance your mortgage?

Some of the reasons for which you should go for mortgage refinancing are:

• Lower monthly payment: By changing into a loan offering a lower interest rate, you can reduce your monthly home loan payments. If you have an adjustable-rate loan, you can refinance into a fixed-rate loan and pay fixed monthly payments.

• Consolidate loans: If you have more than one mortgage, you can refinance in order to combine both the loans into one new home loan.

• Pay off mortgage sooner: You can go for a new loan with a shorter term and accelerated payment schedule to get rid of your home loan debt faster.

• Pay other debts: You can obtain a new loan larger than your current home loan and use the extra money after paying off your mortgage to repay other debts.

What you must do when refinancing your mortgage?

When you wish to refinance, you must take immediate steps to raise your credit score. Based on your score, lenders determine the rate of interest on your loan. Some of the other do’s of refinance are:

• Do shop for lower interest rates: You must shop around and compare the interest rate on loans offered by different lenders. This will help you obtain a loan at a low rate of interest.

• Do ask about penalties for prepayment: Some lenders may charge you penalties for prepaying your home loan. So, you must ask about the penalties from your lender before refinancing.

• Do check the closing cost: Before obtaining the new loan, you must ask the lender about the closing cost and other fees associated with the loan.

When you are shopping around for getting the best deal on mortgage refinancing, you must  find out if the lender offers discount points. You can also consider refinancing with your lender to save on closing costs.

Financial calculators are great tools for determining things like how much to spend, how much home you can afford, what credit card you should apply for, how much interest you will pay over the life of a loan, and much more. Here are some ways that you can utilize online financial calculators to make financially savvy decisions.

Loan Calculators

1. Long Term Outlook – Home loan calculators can help you see what the long term costs of a given mortgage really is by showing you much you will pay in interest over the life of the loan. Credit card calculators will show you how much money you will pay in interest if you carry a credit card balance.
2. Comparison Shopping – Financial calculators can help you to compare many different financial products in order to find the product that is the best choice for you. For example, a credit card finder can help you to compare different credit cards and choose the card that is best for you.
3. Consequences – Debt calculators can help you to realize the consequences of bad financial decisions. Carrying too much debt can easily be overlooked at first glance but by digging deep into your spending habits with a financial calculator then bad habits start to see the sunlight.

Take charge of your financial future and use financial calculators to begin making smart financial decisions today.