subject: 3 Keys to Remortgage Your Home [print this page] Author: Marlon Jackson Author: Marlon Jackson
A remortgage is the process of changing your home mortgage to get lower interest rates or other beneficial terms. Refinancing is extremely helpful because it allows you to take advantage of lower interest rates in the market. This can result in more savings for you through smaller payments, consolidating multiple debts and much more. Its important to talk to brokers and lenders to decide what is best for you. As you consider refinancing your home, remember that you have to be smart and well-prepared in the process in order to make it work for you. One important piece of advice is to think ahead. It may be possible to secure a particular mortgage rate with a lender as much as 6 months in advance. If the market is unstable or interest rates are likely to grow, youll be ahead of the curve and could still save a good amount of money. Even thinking ahead by at least 6 weeks is smart. Many brokers suggest that borrowers allow this much time to secure a new loan when the old one is set to expire. Researching the market is a vital part of being prepared. You can find the best rates for you but only if you do a little work. This means talking to a mortgage broker and lenders directly to get their guidance. You can also do some work yourself by going online to price comparison websites. Both of these steps can give you an accurate idea whether you should refinance. Another important step to consider is reducing your loan size. Decreasing the amount you currently owe can help you secure a lower rate for the future. Having a mortgage that is worth more than 75% of your propertys value can harm your chances of locking in a lower interest rate. If you have savings or extra money, consider that many lenders may allow you to pay off a certain extra percentage of your loan each month. You can also consider paying off some of your current loan when the mortgage is due to expire. The lower the proportion you owe the better chance you have to get a lower interest rate. The remortgage process can be tricky, but as long as youre prepared it can be a great benefit. Remember to think ahead, research the market and reduce your loan size. Also, keep in mind that there are fees and other requirements that may be involved. If you plan well, refinancing your home can save you money and give you peace of mind.About the Author:
