Re-mortgage

 

When looking to re-mortgage your home it is best to do your research. There are several companies willing to compete for the best rate for your loan. So the best thing to do is to do a search around your local market to find which mortgage companies or mortgage brokers can get you the best rate.

Another important factor to consider is to lock in your rate. This will guarantee you long term stability as well as making your mortgage payments consistent so you don’t need to figure out how much your mortgage will be.

One of the biggest reasons why people need to re-mortgage is to release equity. Most homes appreciate over time thus gaining equity. This equity can be used to do home improvements or for you and a spouse or loved one to go on a vacation to a very hot tropical place. Another reason is people want to buy a new car and want to use the equity they have accumulated to buy just that.

Re-mortgaging is also a lot more cost effective then to use a credit card as they typically have large interest rates where re-mortgages are fairly low in comparison. Don’t pay the taxman anymore then you need to. For example a typical credit card rate is 18.9% APR whereas the typical rate for a re-mortgage is prime which is usally 5 – 5% APR. This translates into huge savings over time.

BBC article on mortgages here