Remortgage is similar to refinancing, except you normally pay off your current loan with a new mortgage from a different Mortgage company.
Is it the right time to remortgage? The news is saying interest rates are down, should I remortgage now? Not necessarily, there are lots of things you must take into account before getting a new mortgage.
When you remortgage you will get new loan terms and a new interest rate, but they are not always more favorable. The costs associated with a refinance could be your deciding factor.
There are many costs related to a new mortgage and you must know all of them before deciding to remortgage. Some of the costs are pre-payment penalty, mortgage insurance, points, origination fee, interest rate, appraisal fee, negative amortization and length of term, just to name a few.
You should figure out how much your current loan is costing you and there is a few different ways to do this, one is assuming that you will keep this loan until it is paid off and another would be a shorter term such as when you think you might move or refinance again for another reason such as home improvements or your children?s college tuition etc. Ask your loan broker to help you figure this out, if they don?t want to take the time then find a new broker.
Now that you have all the costs of your current mortgage you are ready to start looking at other loans that maybe able to save you money. Ask your mortgage broker to start searching for mortgage quotes, after they have found the best mortgage deals ask them to work the same figures as they did with you on your current mortgage. Once they have all the numbers completed, sit down with them and compare your current loan with the new mortgage quotes.
There are thousands of mortgage companies all over the nation, many are licensed to do business in your state, so don?t feel like you have to use the first one that comes along. Remember they work for you and if they want to earn there commission than they are going to help you understand the loan process.
Never pay any upfront fees for a mortgage broker to take your application and process your loan. If they are trying charge you a upfront fee run the other way. - 30462
Is it the right time to remortgage? The news is saying interest rates are down, should I remortgage now? Not necessarily, there are lots of things you must take into account before getting a new mortgage.
When you remortgage you will get new loan terms and a new interest rate, but they are not always more favorable. The costs associated with a refinance could be your deciding factor.
There are many costs related to a new mortgage and you must know all of them before deciding to remortgage. Some of the costs are pre-payment penalty, mortgage insurance, points, origination fee, interest rate, appraisal fee, negative amortization and length of term, just to name a few.
You should figure out how much your current loan is costing you and there is a few different ways to do this, one is assuming that you will keep this loan until it is paid off and another would be a shorter term such as when you think you might move or refinance again for another reason such as home improvements or your children?s college tuition etc. Ask your loan broker to help you figure this out, if they don?t want to take the time then find a new broker.
Now that you have all the costs of your current mortgage you are ready to start looking at other loans that maybe able to save you money. Ask your mortgage broker to start searching for mortgage quotes, after they have found the best mortgage deals ask them to work the same figures as they did with you on your current mortgage. Once they have all the numbers completed, sit down with them and compare your current loan with the new mortgage quotes.
There are thousands of mortgage companies all over the nation, many are licensed to do business in your state, so don?t feel like you have to use the first one that comes along. Remember they work for you and if they want to earn there commission than they are going to help you understand the loan process.
Never pay any upfront fees for a mortgage broker to take your application and process your loan. If they are trying charge you a upfront fee run the other way. - 30462
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