Re-mortgages
by R Rama
Most borrowers become unhappy with the deal that they have availed from a lender with the passage of time. This is because lenders may often change offers, or provide new offers that will have better terms and conditions. A vigilant buyer can assess the new offers and may be able to change lenders if he or she feels that the existing mortgage is not enough to create adequate savings.
When planning for a remortgage, it is better to enquire with the lender whether they are willing to change the offer. If the lender obliges, it is better to stick on with the current lender. However, if the lender does not oblige, it makes sense to find a new mortgage provider who may be able to provide a better deal for a much better bargain. Re-mortgaging one's house is a way of availing a better offer for one's home.
There could be many reasons why a house owner would try and re-mortgage his or her property. The biggest reason would be an offer from a new lender that provides lower interest rates. Since mortgage loans are long-term loans, a small change in repayment interest rates would benefit the house owner in the long run. Additionally, a house owner can also use a re-mortgaging initiative to capitalise on the higher equity value of the home. In addition, home owners can also benefit from additional offers that are often provided by banks on new re-mortgaging initiatives. A re-mortgaging initiative will also help a homeowner to manage his or her finances and reduce a complex mortgage loan into a manageable loan that can be easily paid back. Remortgages can also be used to pay off high cost debts provided the new offer provides for lower interest rates.
วันอังคารที่ 12 กุมภาพันธ์ พ.ศ. 2551
When Should You Remortgage Your Home? : Home remortgage refinancing review 2008
When Should You Remortgage Your Home?
by Michael Sterios
If you're a homeowner, you'll know only too well the cost of owning a house. With ongoing maintenance costs, council tax and more, often being a homeowner is at the expense of things like holidays and new cars. However, this needn't be the case, with remortgages proving extremely popular over the last few years when it comes to needing extra money.
Additionally, remortgages are also an excellent way to make sure you continue to get the best interest rate available, and offers you the chance to change mortgage lenders or providers if necessary. Despite this, many people still aren't taking advantage of this opportunity, through a mixture of misunderstanding and belief they have the best deal anyway. This is why it's important to look at what a remortgage can offer you.
Getting a Better Interest Rate
One of the prime reasons for remortgaging your home is that it can help you choose a better interest rate than what you're currently paying. For example, when you first buy your house, you'll usually either take out a fixed-rate mortgage or one that has a variable rate.
Because interest rates fluctuate quite often, it doesn't make sense staying in a fixed interest rate mortgage that is charging 5%, when you could easily swap to one that's only charging 4.5%. The same goes for variable interest mortgages - use the opportunity that a remortgage offers you to swap to a lender that can offer you a lower interest rate than what you're currently paying. Even if you find that there's a penalty for doing this, the savings you make will be more than worth the cost.
Release the Equity in your Home
Another benefit that remortgaging your home can offer is that it can release a lump sum of money whenever you need it. This can be for a variety of reasons, and best of all it's often far cheaper than taking out a more traditional loan from a bank or similar.
Many homeowners are now using the equity in their home to pay for things like a child's wedding; home improvements and renovations; or even a luxury cruise for a special occasion, such as a golden wedding anniversary. You can even use the money release by a remortgage to buy yourself a new car - unlike a lot of normal loans, there's no restrictions on what you use the money for.
How it Works
One of the reasons there are still so many people not making use of this easy way to free up some extra money is that they misunderstand what a remortgage involves. However, it's a fairly straightforward process yet can make such a difference to you financially.
At its simplest, remortgaging your home is simply replacing your current mortgage with a new one. This may mean only changing the type of mortgage you have with your current lender, or changing lenders altogether. Just like an actual mortgage, there are a host of different rates and types of remortgages available to you, so before you make the final decision, make sure you shop around.
by Michael Sterios
If you're a homeowner, you'll know only too well the cost of owning a house. With ongoing maintenance costs, council tax and more, often being a homeowner is at the expense of things like holidays and new cars. However, this needn't be the case, with remortgages proving extremely popular over the last few years when it comes to needing extra money.
Additionally, remortgages are also an excellent way to make sure you continue to get the best interest rate available, and offers you the chance to change mortgage lenders or providers if necessary. Despite this, many people still aren't taking advantage of this opportunity, through a mixture of misunderstanding and belief they have the best deal anyway. This is why it's important to look at what a remortgage can offer you.
Getting a Better Interest Rate
One of the prime reasons for remortgaging your home is that it can help you choose a better interest rate than what you're currently paying. For example, when you first buy your house, you'll usually either take out a fixed-rate mortgage or one that has a variable rate.
Because interest rates fluctuate quite often, it doesn't make sense staying in a fixed interest rate mortgage that is charging 5%, when you could easily swap to one that's only charging 4.5%. The same goes for variable interest mortgages - use the opportunity that a remortgage offers you to swap to a lender that can offer you a lower interest rate than what you're currently paying. Even if you find that there's a penalty for doing this, the savings you make will be more than worth the cost.
Release the Equity in your Home
Another benefit that remortgaging your home can offer is that it can release a lump sum of money whenever you need it. This can be for a variety of reasons, and best of all it's often far cheaper than taking out a more traditional loan from a bank or similar.
Many homeowners are now using the equity in their home to pay for things like a child's wedding; home improvements and renovations; or even a luxury cruise for a special occasion, such as a golden wedding anniversary. You can even use the money release by a remortgage to buy yourself a new car - unlike a lot of normal loans, there's no restrictions on what you use the money for.
How it Works
One of the reasons there are still so many people not making use of this easy way to free up some extra money is that they misunderstand what a remortgage involves. However, it's a fairly straightforward process yet can make such a difference to you financially.
At its simplest, remortgaging your home is simply replacing your current mortgage with a new one. This may mean only changing the type of mortgage you have with your current lender, or changing lenders altogether. Just like an actual mortgage, there are a host of different rates and types of remortgages available to you, so before you make the final decision, make sure you shop around.
Remortgage - tips for finding a suitable deal : Home mortgage review 2008
Remortgage - tips for finding a suitable deal
by Peter Patagrew
When you have to make high amount of payments each month towards a home loan, it becomes a huge burden on your finances for variety of reasons. There is less money left for meeting other necessary expenses. Well, in such a scenario, taking out remortgage could be a solution.
Remortgage means that you intend to get rid of your existing loan and want to replace it with a new loan. In doing so, the main motive usually is that your monthly outgoings are down substantially. You can achieve it by availing the new loan at lower interest rate. In fact, the reasons for replacing an existing loan vary from borrowers to borrowers. One reason could be that you wan to repay the balance payments early. Another one could be that you want to pay for your child's tuition fee through the amount you save on the interest payments.
When should you go for replacing your current burdensome loan? Well, generally, the adequate time is when the interest rates have fallen substantially in the market. However, even if the market rates are not down, you can have the new loan at lower rate than the rate on your existing loan. This is because you are likely to have an improved credit rating in past few months after making timely repayments for the current loan installments. Check your FICO credit score before approaching a lender.
Another aspect you should keep in mind while opting for remortgage is that you should take it out in the early stages of the existing loan. You can save much more money this way as compared to replacing the loan in its later stages.
Each lender has different interest rates on remortgage. Instead of rushing to the first offer, you locate, apply for the rate quotes and make an extensive comparison of them. This way, you can find a suitable deal for your circumstances.
by Peter Patagrew
When you have to make high amount of payments each month towards a home loan, it becomes a huge burden on your finances for variety of reasons. There is less money left for meeting other necessary expenses. Well, in such a scenario, taking out remortgage could be a solution.
Remortgage means that you intend to get rid of your existing loan and want to replace it with a new loan. In doing so, the main motive usually is that your monthly outgoings are down substantially. You can achieve it by availing the new loan at lower interest rate. In fact, the reasons for replacing an existing loan vary from borrowers to borrowers. One reason could be that you wan to repay the balance payments early. Another one could be that you want to pay for your child's tuition fee through the amount you save on the interest payments.
When should you go for replacing your current burdensome loan? Well, generally, the adequate time is when the interest rates have fallen substantially in the market. However, even if the market rates are not down, you can have the new loan at lower rate than the rate on your existing loan. This is because you are likely to have an improved credit rating in past few months after making timely repayments for the current loan installments. Check your FICO credit score before approaching a lender.
Another aspect you should keep in mind while opting for remortgage is that you should take it out in the early stages of the existing loan. You can save much more money this way as compared to replacing the loan in its later stages.
Each lender has different interest rates on remortgage. Instead of rushing to the first offer, you locate, apply for the rate quotes and make an extensive comparison of them. This way, you can find a suitable deal for your circumstances.
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