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Remortgage is similar to refinancing, except you normally pay off your current loan with a new mortgage from a different Mortgage company.
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. Remortgaging gives you new a new interest rate and in most cases a longer loan term, which may cost you more later. There are many costs relating to a refinance which may not be favorable for you at this time. Here are some of the costs associated with a remortgage, that you must know about before deciding if it is right for you or not, interest rate, mortgage insurance, adjustable rate, negative amortization, pre-payment penalty, points, escrow fees, title insurance, origination fee, appraisal fee and many more. Your mortgage broker should take the time to go over your current loan with you (if they wont then find a different broker), have them show you what your current loan is costing you if you do nothing different. Ask them to show you a couple different scenarios, one is how much it would cost for the life of the loan and the other is for a shorter term such as the length of time you plan on staying in the house or the length of time before you refinance again for some other reason. You now know what your current loan is costing you, if you do nothing different. Ask your loan broker to find the best mortgage deals they can and after they have them, go visit with them again and compare the new mortgage quotes with your current loan. Be sure to use the same examples so you get accurate information. With this information you are now ready to decide if you should remortgage now or wait to move or refinance. Mortgage brokers are a dime a dozen, but finding a good one that will spend quality time with you is another thing. There are thousands of mortgage companies all across the country, many our licensed in your state. Make sure you are comfortable with the one you decide to go with. You should not pay any upfront processing fees. If your broker is requiring a fee to take your application find a new broker. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. To learn more about Mortgage Companies and the Best Mortgage Deals visit Remortgage Network |