Advice for Remortgaging- What You Shouldn't and Should Do
When the interest rates are low, you are going to feel pressure to remortgage your house or other property that you own, and you might ask yourself whether it is the right thing to do. If you do make the decision to remortgage, you can follow these tips of what you should and shouldn't do, which is going to make remortgaging a whole lot easier.
Should: Window shop. When you remortgage, you are taking your current mortgage with your bank and moving it to an entirely new bank. It doesn't count as a remortgage if you don't change banks or mortgage companies. If you want to get a great deal on your remortgage you are going to have to window shop. You are not going to be able to talk to just one bank, you are going to have to go to many different banks and see what each one has to offer.
Should: Figure out your finances before committing. A lot of times people will remortgage their house thinking that they are going to save a lot of money, only to figure out that in the long run they didn't save much money at all. Think of how much the bank fees and mortgage company fees are going to be first and then see whether or not you are going to get a better deal if you just put that money toward your current mortgage and make an extra payment. You may find that that extra payment will save you almost the same amount of money as remortgaging does in the long run. You have to think about the whole picture and not just about short term money saving.
Shouldn't: Don't do what your neighbor does. If your neighbor recently remortgaged his house, it doesn't mean that it is time to do yours too. Just because it was a smart move for them, doesn't mean that you should do the same thing without doing a lot of research and making an independent decision.
Shouldn't: You shouldn't get swept away with silly promotions. Some banks are going to be less than honest with their advertising, saying that they can offer you a really low interest loan, but then the mortgage papers say the interest rate is much higher. If you can't believe a bank could offer such a good rate, then it is probably just a way to get you in the door.
Shouldn't: Don't make rash decisions. Remortgaging doesn't have to be done today; it can be done tomorrow, in three months, three years or whenever you want to. If a bank offers you a special deal for a limited time only you should be certain that remortgaging is what you want to do first, even if it means that you might lose the deal. You want to be certain about your decision because remortgaging takes a lot of time and effort on your part and you want to be satisfied with your decision for the remainder of the mortgage term.
Remortgaging your house is going to be a big step, and there are some things that you definitely should and shouldn't do. If you're considering a remortgage, the best advice you can get is to make sure that you do your research and understand what exactly you are doing and how it is going to affect you in the future. It all depends on your specific situation, so make sure you don't forget to do your research.
Should: Window shop. When you remortgage, you are taking your current mortgage with your bank and moving it to an entirely new bank. It doesn't count as a remortgage if you don't change banks or mortgage companies. If you want to get a great deal on your remortgage you are going to have to window shop. You are not going to be able to talk to just one bank, you are going to have to go to many different banks and see what each one has to offer.
Should: Figure out your finances before committing. A lot of times people will remortgage their house thinking that they are going to save a lot of money, only to figure out that in the long run they didn't save much money at all. Think of how much the bank fees and mortgage company fees are going to be first and then see whether or not you are going to get a better deal if you just put that money toward your current mortgage and make an extra payment. You may find that that extra payment will save you almost the same amount of money as remortgaging does in the long run. You have to think about the whole picture and not just about short term money saving.
Shouldn't: Don't do what your neighbor does. If your neighbor recently remortgaged his house, it doesn't mean that it is time to do yours too. Just because it was a smart move for them, doesn't mean that you should do the same thing without doing a lot of research and making an independent decision.
Shouldn't: You shouldn't get swept away with silly promotions. Some banks are going to be less than honest with their advertising, saying that they can offer you a really low interest loan, but then the mortgage papers say the interest rate is much higher. If you can't believe a bank could offer such a good rate, then it is probably just a way to get you in the door.
Shouldn't: Don't make rash decisions. Remortgaging doesn't have to be done today; it can be done tomorrow, in three months, three years or whenever you want to. If a bank offers you a special deal for a limited time only you should be certain that remortgaging is what you want to do first, even if it means that you might lose the deal. You want to be certain about your decision because remortgaging takes a lot of time and effort on your part and you want to be satisfied with your decision for the remainder of the mortgage term.
Remortgaging your house is going to be a big step, and there are some things that you definitely should and shouldn't do. If you're considering a remortgage, the best advice you can get is to make sure that you do your research and understand what exactly you are doing and how it is going to affect you in the future. It all depends on your specific situation, so make sure you don't forget to do your research.
posted by Credit Counseling at
2:37 AM
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