![]() |
Remortgages GuideOutlined below is a useful remortgages guide. Remortgaging has become increasingly popular due to the relatively simple and flexible process. A remortgage is exactly as the name suggests, taking out a new mortgage and repaying your existing one in order to realise equity and sometimes to reduce monthly payments. Basically, a remortgage is when you transfer your existing mortgage agreement to another lender. A remortgage will mean that the new lending company will pay the old provider the balance of the amount outstanding and you will continue making your payments to the new lending company. Many people do not realise that they can simply pay off their current mortgage and take out a new one. By remortgaging your home, you could save significant amounts on your monthly payments. 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. A remortgage can be used for the purpose of gaining lower interest rates on your mortgage or raising finance through releasing equity. 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. A remortgage is a great way of saving money, as it is likely to lower your mortgage interest rates. A mortgage is also one of the cheapest forms of loans around, so if you're looking to raise finance, it makes sense to remortgage your home. There are various reasons why someone would remortgage. Quite often it is just a cost saving exercise to reduce the monthly payment, although increasingly it is seen as a way of consolidating debts and reducing the overall household outgoings each month. 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. Another reason to remortgage is in order to raise additional cash. Due to the rapid rise in property values over the past few years, many people now have mortgages which are well below their home's current value. The difference between the property value and the mortgage debt is known as equity. The majority of mortgage lenders will allow you to increase the size of the mortgage in order to tap into some of this equity. The cash raised can be used for a variety of purposes, such as home improvements, holidays, a new car, or the consolidation of existing debts. The advantage of borrowing money against your property is that the rate will almost certainly be better than if you took out a personal loan, and because you can spread the cost over the remaining term of the mortgage, the repayments are lower. Unlike moving house, arranging a remortgage can be surprisingly simple. There are no chains of buyers to worry about, so the whole process can often be completed in a few weeks. The remortgaging 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. Whether to remortgage depends on interest rates. You always have to be sure that you can meet the repayments whatever the economic climate. 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 John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Today’s mortgage refinance rates mixed — one key rate drops while another rises | March 2, 2021 Fox Business Today's mortgage and refinance rates: March 7, 2021 | Rates go down Business Insider Can refinancing a mortgage hurt my credit score? Fox Business Best mortgage refinance lenders in 2021 Bankrate.com Best cash-out refinance lenders in 2021 Bankrate.com Mortgage rates are falling to unprecedented lows in 2021 — refinance now to save money Q13 FOX (Seattle) How to refinance an FHA loan | Mortgage Chase News & Stories Mortgage Recast: How to Reamortize and Save Money Credible News Can Closing Costs Change On The Closing Disclosure? The Mortgage Reports 2021 Maine first-time homebuyer assistance programs Bankrate.com 3 signs you should refinance your mortgage right now Fox Business How do I get the most out of my mortgage refinance? Fox Business Top 5 mortgage refinance questions answered Fox Business How to decide if you should refinance your mortgage Fox Business Pros and cons of a cash-out mortgage refinance Fox Business How to refinance your mortgage Fox Business Mortgage refinance: Everything you need to know Fox Business Mortgage refinance rates continue hitting record lows – here’s how to get the best deal now Fox Business What are the hidden costs of refinancing a mortgage? Fox Business Who's exempt from the new mortgage refinance fee? Fox Business Everything You Should Know About The New Mortgage Refinancing Fee That Goes Into Effect Dec. 1 Forbes How to refinance your mortgage in 5 easy steps Fox Business Mortgage refinance applications soar despite a new fee that increases the cost Pittsburgh Post-Gazette Refinancing your mortgage? Don’t make this mistake Fox Business 4 ways to get lower mortgage refinance rates Fox Business Despite low mortgage interest rates, homeowners should research the caveats before refinancing Seattle Times The best mortgage refinance lenders of March 2021 Business Insider 5 reasons to refinance your mortgage right now HousingWire How to Refinance Your Home | Home Lending Chase News & Stories 10 things to know before refinancing your mortgage Fox Business 3 Mortgage Refinance Strategies to Consider in 2021 The Motley Fool Complete Checklist of Mortgage Refinancing Requirements Credible News 10 tips for getting the best mortgage refinance rate, from checking your credit report to choosing the right lender Business Insider Jumbo Mortgage Refinance Rates for March 2021 NextAdvisor USDA Construction Loans | Buy Land & Build A Home With USDA The Mortgage Reports How to get a low-cost mortgage refinance Bankrate.com
|