Ten Questions to Ask Yourself Before You Remortgage Your Home
Knowing whether a remortgage is the right move for you can be a difficult thing to determine. Sometimes, remortgaging is not going to be the best move, while other times it is going to be the only thing that saves your house during a tough economic patch. Answer these 10 questions honestly to find out whether remortgaging is the right move for you now.
1. What's my credit score? By knowing your credit score, you are going to be able to estimate what type of interest rate you are going to be able to get on your remortgage. If your credit is not the best it could be, you may want to work on repairing it before you remortgage.
2. What is your current rate of interest on your mortgage? If you're only going to save a half a percent or even a percent, you might want to consider holding off on remortgaging. You want to make it worth your while, and you also want to make sure you get the best deal possible. By holding off a bit you can see if mortgage rates go down even further.
3. What's the interest rate now? Before taking the plunge and remortgaging, you are going to want to see exactly how much money you are going to be able to save every month.
4. What are the fees associated with remortgaging? Every company is going to have different fees for remortgaging, and you want to choose a company with the lowest fees. However, sometimes the fees can be hidden so make sure to read the contract thoroughly.
5. How many years are left on your current mortgage? If there are only a handful of years left on your current mortgage, you might just want to pay it off as soon as possible. Ask yourself what is better: paying off your home quickly or paying it off with a lower interest rate. By remortgaging, you won't be able to pay your house off quicker, just with less interest.
6. Are you planning on relocating? If your job is going to send you to another location soon, remortgaging is not going to be the best move right now. Just keep on paying off your mortgage and when you move, you can find a mortgage that has a better interest rate.
7. Is the family happy? If you are going to get a divorce (or get married) in the near future, you are going to want to wait to remortgage your house. Remortgaging is expensive and not a fun thing to do, so you don't want to do it more often than you have to. Do it only when you have to.
8. How long has this been on your mind? People often see advertisements and get swept away with the notion of how great it would be to remortgage without realizing that it is a lot of work.
9. Do you have the patience to remortgage? This is a big process and will take a lot of your time. If your calendar is full, don't choose now to remortgage, because it is going to give you a bit of stress.
10. Are banks enthusiastic? If you are still unsure, go to a couple of banks and see if they are enthusiastic about all of the benefits of remortgaging for you. You will usually be able to tell whether or not remortgaging is for you and you are under no obligation to go through with it if it isn't.
Remortgaging is a huge process and knowing when to remortgage is not always that clear. By asking yourself these 10 questions, you are going to be able to tell whether now is the right time to remortgage.
1. What's my credit score? By knowing your credit score, you are going to be able to estimate what type of interest rate you are going to be able to get on your remortgage. If your credit is not the best it could be, you may want to work on repairing it before you remortgage.
2. What is your current rate of interest on your mortgage? If you're only going to save a half a percent or even a percent, you might want to consider holding off on remortgaging. You want to make it worth your while, and you also want to make sure you get the best deal possible. By holding off a bit you can see if mortgage rates go down even further.
3. What's the interest rate now? Before taking the plunge and remortgaging, you are going to want to see exactly how much money you are going to be able to save every month.
4. What are the fees associated with remortgaging? Every company is going to have different fees for remortgaging, and you want to choose a company with the lowest fees. However, sometimes the fees can be hidden so make sure to read the contract thoroughly.
5. How many years are left on your current mortgage? If there are only a handful of years left on your current mortgage, you might just want to pay it off as soon as possible. Ask yourself what is better: paying off your home quickly or paying it off with a lower interest rate. By remortgaging, you won't be able to pay your house off quicker, just with less interest.
6. Are you planning on relocating? If your job is going to send you to another location soon, remortgaging is not going to be the best move right now. Just keep on paying off your mortgage and when you move, you can find a mortgage that has a better interest rate.
7. Is the family happy? If you are going to get a divorce (or get married) in the near future, you are going to want to wait to remortgage your house. Remortgaging is expensive and not a fun thing to do, so you don't want to do it more often than you have to. Do it only when you have to.
8. How long has this been on your mind? People often see advertisements and get swept away with the notion of how great it would be to remortgage without realizing that it is a lot of work.
9. Do you have the patience to remortgage? This is a big process and will take a lot of your time. If your calendar is full, don't choose now to remortgage, because it is going to give you a bit of stress.
10. Are banks enthusiastic? If you are still unsure, go to a couple of banks and see if they are enthusiastic about all of the benefits of remortgaging for you. You will usually be able to tell whether or not remortgaging is for you and you are under no obligation to go through with it if it isn't.
Remortgaging is a huge process and knowing when to remortgage is not always that clear. By asking yourself these 10 questions, you are going to be able to tell whether now is the right time to remortgage.
posted by Credit Counseling at
6:17 AM
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