Almost half of homeowners who refinance their mortgage are making a mistake that could cost them more than $121,000 throughout the life of the loan.

Fresh research from comparison site Money.com.au has shown the decision to reset the timeline on a home loan to save some cash in the short term are suffering in the long term.

About 47 per cent of homeowners who refinance, reset their loan term back to 30 years, the research found.

Money.com.au’s mortgage expert Debbie Hays said those who reset their mortgage back to 30 years may feel as though they are winning, but the short term relief was a “false economy”.

“You may save a few hundred dollars a month now, but you’re signing up for tens of thousands in extra interest over time and adding back years to your loan when the goal is generall

See Full Page