Why Choose a Remortgage?A remortgage can be used for the purpose of gaining lower interest rates on your mortgage or raising finance through releasing equity. The term "Remortgage" is used to explain the process of moving your mortgage to a new lender. A different lender may offer a significantly better deal than your existing lender. A remortgage means you are ending your current mortgage scheme and switching to a new scheme. A remortgage generally involves changing mortgage lenders because most lenders do not generally offer remortgage schemes to existing customers. Mortgage lenders offer discounted interest rates and other desirable introductory offers to attract mortgage holders to switch to their particular lending institution. Review your current mortgage. If you feel you are paying excessive rates of interest, compared to other lenders then a remortgage may save on your monthly payments. Alternatively, you may be looking for a way to finance an extension or purchase a new car, you could seek to increase your mortgage and take the extra sum as cash. Releasing equity is a good way of raising additional finance. If your home has positive equity - its market value is greater than the outstanding mortgage - you can increase the size of your mortgage. One of the most common reasons for remortgaging is to reduce costs. By switching to a lower interest rate you can either benefit from lower monthly repayments, or keep the monthly repayments the same, thus repaying the loan quicker and reducing the overall term of the mortgage. A remortgage should be considered for a variety of reasons: Reduce Outgoings By switching to a mortgage deal with lower interest rates you could save a considerable amount over the term of your mortgage. Debt Consolidation A remortgage can allow home owners to consolidate their existing debt into one manageable monthly payment. Debt consolidation makes life easier in the short term and makes savings in the long term. Equity Release If your home has increased in value since you took out your mortgage it may be worth considering releasing some of the tied up equity. Equity release can be one the cheapest forms of borrowing. The remortgage process is relatively simple, and the process from start to finish normally lasts between 4-6 weeks. In terms of costs there is no stamp duty to be paid, as you are not purchasing a property. Many lenders will pay some or all of your valuation and legal fees. In some cases there may be an arrangement fee or booking fee from the new lender. There may also be redemption penalties on your existing mortgage and you will need to take these into account when assessing how much money you could save by remortgaging. You may freely reprint this article provided the author's biography remains intact: About The Author
MORE RESOURCES updated Sat. April / 27 / 2024 Mortgage Refinance Rates: Compare Current Rates Business Insider 10-year refinance rates: What to know about the current market CNN Underscored Should You Refinance Halfway Through Your Mortgage? Bankrate.com How to Refinance Your Mortgage NerdWallet Mortgage Interest Rates Today, April 26, 2024 | Are Homebuyers Adjusting to Higher Rates? Business Insider Loan Modification Vs. Refinance Bankrate.com 30-Year Mortgage Refinance Rates Business Insider Mortgage Interest Rates Today, April 24, 2024 | Rates Still Slated to Go Down This Year Business Insider 15-Year Mortgage Refinance Rates: Compare Current Rates Business Insider Types of Mortgage Refinance Options Bankrate.com Only Half Of Black Seniors Approved For Home Repair Or Refinance Loans To Age In Place Block Club Chicago Mortgage Interest Rates Today, April 22, 2024 | The Still-Hot Economy is Keeping Rates High Business Insider How To Get The Best Refinance Rate Bankrate.com Average Mortgage Interest Rates: Mortgage Rates by Credit Score, Year, and Loan Type Business Insider The best mortgage lenders for refinancing in April 2024 CNN Underscored Mortgage Interest Rates Today, April 21, 2024 | Rates Remain Near 7% Business Insider Best Mortgage Refinance Lenders In 2024 Bankrate.com Should You Refinance Your Mortgage In 2024? Bankrate.com Best Refinance Lenders of April 2024: Refinance Your Mortgage The Motley Fool Current mortgage refinance rates CNN Underscored MBA: Mortgage Applications Decreased in Weekly Survey Calculated Risk When to Consider Refinancing Your Mortgage Business Insider How To Refinance A Rental House Bankrate.com Refinance Requirements: What You Need to Refinance Your Home in 2024 The Mortgage Reports Mortgage Rates Chart | Historical and Current Rate Trends The Mortgage Reports How Soon Can You Refinance a Mortgage? NerdWallet Best Mortgage Refinance Lenders of April 2024 Business Insider How To Refinance An Underwater Mortgage Bankrate.com 30-Year Mortgage Rates Move Lower for a Third Day Investopedia Conventional Refinance Rates and Guidelines for 2024 The Mortgage Reports Current 15-year refinance rates — and lenders that offer them CNN Underscored 30-year refinance rates: What to know CNN Underscored Refinancing a Home Equity Loan (2024 Guide) MarketWatch Mortgage Rate History: 1970s to 2023 Bankrate.com When should I refinance my mortgage? To determine if a refinance is the right move for you, you’ll need to know the ... The Wall Street Journal Mortgage Rate Forecast February 2024 Bankrate.com Pros and Cons of a Cash-Out Refinance Bankrate.com Mortgage Rate Predictions: Are 7% Rates Here to Stay in 2024? Norada Real Estate Investments What Credit Score Do I Need To Refinance? Bankrate.com Should I Refinance My Mortgage Now? When to Refinance As Rates Drop Business Insider Office of Research blog: A look at cash-out refinance mortgages and their borrowers between 2013 to 2023 Consumer Financial Protection Bureau Mobile Home Refinancing | Loans & Rates 2023 The Mortgage Reports
|