Is The Time Right For You To Re Mortgage

Is The Time Right For You To Re Mortgage

Is the​ Time Right for you​ to​ Re-mortgage?
At certain times and in​ certain circumstances it​ actually makes more sense for someone to​ re-mortgage than to​ stay with their current lender and ride the​ waves of​ ever changing interest rates .​

This article looks at​ five specific reasons to​ re-mortgage but first things first I​ must just point out that the​ information contained in​ this article does not constitute personal advice and because your circumstances and financial position are as​ unique as​ you​ are,​ you​ should seek professional,​ regulated and specific advice before re-mortgaging to​ ensure that this is​ the​ best decision for you​ right now…
1) If your mortgage introductory or​ fixed rate period is​ about to​ expire you​ can save substantial money over the​ period of​ your loan if​ you​ re-mortgage .​
you​ avoid having to​ start paying your mortgage lender’s variable rate of​ interest which is​ highly likely to​ begin at​ least one percentage point above that which you​ have already been paying and which could increase your monthly outgoings significantly .​
Over the​ lifetime of​ your loan just a​ one percent increase will result in​ you​ paying back thousands in​ extra interest payments – money you​ could save towards retirement,​ put in​ a​ fund for your kid’s college education or​ use to​ actually pay off your mortgage faster…which leads me neatly to​ my next point!
2) Many lenders are trying to​ attract your new business and will offer you​ attractive re-mortgage rates now which will reduce the​ amount you’re already paying .​
If you​ can currently afford what you’re paying why not forego the​ reduction and instead continue paying the​ same amount with the​ new lender and pay back your mortgage quicker .​
the​ years or​ even months you​ can shave off the​ term of​ your loan are years or​ months without interest payments which are years or​ months you’ll be significantly wealthier.
3) If you’re not wholly comfortable with your current monthly repayments then ignore point 2 and look at​ re-mortgaging to​ a​ cheaper lender and taking the​ discount.
4) Make life simpler by considering a​ fixed rate mortgage so you​ don’t have to​ worry about interest rate fluctuations and can budget more effectively.
5) If you​ have accrued equity on​ your property you​ could consider re-mortgaging up to​ the​ new value of​ your property and using the​ additional funds to​ buy an​ investment property from which you​ could either draw down a​ regular income in​ the​ form of​ rent or​ which you​ could use for capital appreciation purposes .​

With this extra money you​ could consider buying an​ overseas investment property in​ a​ country with an​ emerging property sector which will initially cost you​ less,​ let you​ and your family have a​ holiday home and remove expensive annual holiday costs,​ you​ could also rent it​ out when you’re not using it​ to​ generate an​ income to​ afford to​ pay for the​ property and over the​ long term this property’s value could rise significantly .​
Later in​ life you​ might choose to​ retire to​ this property or​ sell it​ for a​ nice lump sum that you​ can take into retirement .​
Examine your options carefully and remember to​ look at​ the​ bigger picture! If you​ can profit from a​ re-mortgage then take the​ deal,​ but get expert advice and assistance before entering into any investment decision.

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