What You Should and Shouldn't Do When Remortgaging
You may feel pressured to remortgage the house and other properties that you own, but you aren't 100% sure that it is the right move financially. If you decide to remortgage your property in the end, here is some advice on what you should and shouldn't do to make your remortgage a lot easier.
Should: Shop around. The whole the point of a remortgage is to take your existing mortgage with company X and change it into a new mortgage with company Y. It is not a remortgage if you don't change companies. Simply put, to get the best deal you are going to have to shop around. This doesn't mean you can just talk with one mortgage company, it means you need to hit the pavement and talk to as many companies as you can.
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: Follow the crowd. If you know a lot of people that are remortgaging now, it doesn't mean that you need to remortgage now, too. If a lot of people are remortgaging you are still going to have to make the best decision for yourself and weigh the plusses and the minuses of the whole process.
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 hurry the process too much. Don't forget, if you don't remortgage today, you will still have the option today, tomorrow, in a year, and in five years. You definitely shouldn't sign a mortgage contract even if the special deal that you were offered expires tomorrow. Remortgaging is a big hassle and the mortgage that you get is going to be with you for a long time (unless you want to go through the paperwork and fees again), so do it right the first time.
There are things that you should and shouldn't do when taking the leap and remortgaging your home. The most important advice is to make sure that you understand what you are doing and how it will affect the future of your mortgage. Remortgaging is going to be an individual thing, so make sure that you look at your situation only.
Should: Shop around. The whole the point of a remortgage is to take your existing mortgage with company X and change it into a new mortgage with company Y. It is not a remortgage if you don't change companies. Simply put, to get the best deal you are going to have to shop around. This doesn't mean you can just talk with one mortgage company, it means you need to hit the pavement and talk to as many companies as you can.
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: Follow the crowd. If you know a lot of people that are remortgaging now, it doesn't mean that you need to remortgage now, too. If a lot of people are remortgaging you are still going to have to make the best decision for yourself and weigh the plusses and the minuses of the whole process.
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 hurry the process too much. Don't forget, if you don't remortgage today, you will still have the option today, tomorrow, in a year, and in five years. You definitely shouldn't sign a mortgage contract even if the special deal that you were offered expires tomorrow. Remortgaging is a big hassle and the mortgage that you get is going to be with you for a long time (unless you want to go through the paperwork and fees again), so do it right the first time.
There are things that you should and shouldn't do when taking the leap and remortgaging your home. The most important advice is to make sure that you understand what you are doing and how it will affect the future of your mortgage. Remortgaging is going to be an individual thing, so make sure that you look at your situation only.
posted by Credit Counseling at
1:14 AM
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