Refinancing your mortgage for a lower interest rate could cost more in the long run if you extend the life of the loan, mortgage experts have warned.

A survey has found nearly half (47 per cent) of all Aussies who refinance their mortgage opt to extend their loan term and this could cost them more than $100,000 in additional interest.

Alarmingly, 8 per cent of surveyed homeowners weren't even aware their loan term had been extended to 30 years.

"Yes, it feels like a win because it reduces monthly repayments, but it's really a false economy," money.com.au mortgage expert Debbie Hays said.

"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 generally to pay it

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