Remortgage - Why You Should Consider a Remortgage Now

To some people, remortgaging might seem as a no-brainer. This is especially so if they have a good chunk of equity on their homes. However, saving money with a lower mortgage shouldn't be the only thing you consider.

There are many more factors you should consider when it comes to a remortgage such as costs to remortgage and the situation of your personal living. This article will explain some of the things you should check before making any move.

The period you intend to stay in your house If you intend to move to another house in the next few years, it would be wise to keep your current mortgage. This is because chances are that you won't have time to recover the cost of the remortgage before you move out and sell the house. However, if you intend to live in it for a long period, a good idea would be to remortgage.

Date to retirement
If retirement is just around the corner, you would be better off taking a short term loan. This one is given at lower rates than the long term ones and you will have enough money to last you through your retirement.

Predictability
If you plan to stay in your home for an extended period of time, a fixed rate mortgage would be a good way to go. This is so because even if the remortgage payments are not lowered, you won't have to worry about them increasing since there is security with fixed rates.


The cost of remortgaging
Your remortgage may be offered to you with points and fees. Learn about your lenders cost of remortgaging by checking out their Good Faith Estimate and make an application. These points and fees may add up to thousands of dollars. You may find fees and points for loan origination, application, appraisals, escrow, inspection discount points and mortgage insurance. You also have a choice to picking a higher interest rate which may lead to the lender absorbing some of the cost sometimes all of it.

Cash-Out Refinance
Some people do cash-out refinancing to pay the credit card debts. They do this because it sometimes saves on taxes and the rates are lower. There is however a downside to this strategy. At first, your debt is dischargeable in bankruptcy and unsecured but once you do the cash-out remortgaging, the whole thing is no longer dischargeable and is now secured by your home.

Taking all the remortgage tips you can before you make any move will help you make wise decisions and save a lot of money and time.

Article Source: http://EzineArticles.com/5189516

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Is Remortgaging Right For You?

There are times when it will be obvious that you can save money by remortgaging but in the wake of the credit crunch this may not be the case and indeed it may even be impossible to persuade a lender to give you greater funds. Interest rates on fixed and discounted rate mortgage products have been creeping up leaving many not far off a typical standard variable rate.

However those looking to borrow substantial sums running perhaps to tens of thousands of pounds for whatever reason may still find that the cheapest way of doing so on a monthly basis is to extend their mortgage. A lender may still be more than happy to do this if you have sufficient equity in your home. Do be aware however that you will be paying interest against such borrowing for a much longer period than a standard personal loan and it could end up costing you more overall because of that.

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Why Remortgage?

This can mean that people are left to find better offers. A remortgage is when you move to another provider who is offering a better deal.

People remortgage their property for many reasons but the main reason is because they will be financially better off by taking out a mortgage with a different provider.

After the fixed rate mortgages and tracker mortgages have come to the end of their set time, the interest rate tends to increase significantly.

Research has found that people who remortgage their property during the term of their mortgage are a lot more likely to end up paying out less on interest.

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What Is Remortgage?

A remortgage (also known as refinancing) is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security. The term is mainly used commercially in the United Kingdom, though what it describes is not uniquely British. Often the purpose of switching is to secure a more favorable interest rate from a different lender.

The process of remortgaging does not usually involve moving home or taking out a second mortgage on the property; it is in effect the transfer of a mortgage from one lender to another. Homeowners may choose to remortgage for various reasons, including to reduce the size of repayments, to pay off a mortgage earlier, to raise capital, or to consolidate other debts.

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