Thursday, July 12, 2007
Remortgage Loan
What Is A Remortgage Loan?
A remortgage loan is simply a new loan that replaces an existing mortgage. It can be obtained through your existing lender or you can use a different lender, depending on where you can find the best deal. As part of the remortgage process, your old mortgage will be paid off and you may even have the option to cash out some of your home equity.
Why Would I Want A Remortgage Loan?
There are a number of reasons why you may want a remortgage loan:To take advantage of a lower interest rateTo pay for large expenses such as a child's education or weddingTo pay for remodelling or expansion of your existing homeTo pay off other higher rate debts like credit cards or car loansRemember that a remortgage loan is secured by your home, so it's important to make the payments on time and in full to maintain the loan in good standing.
Why Wouldn't I Want A Remortgage Loan?
In some situations, a remortgage loan might not be a good idea. For example, if it hasn't been very long since you obtained the mortgage or you got it at a very discounted rate you may face substantial penalties for early repayment. Or, if the balance on your existing loan is very small you may find that lenders are unwilling to underwrite a remortgage or that the fees they charge will be greater than the remortgage savings.Another reason not to remortgage is if your employment has recently changed, especially if you are newly self-employed. Lenders want to be reasonably sure you’ll be able to repay the remortgage amount and they are often reluctant to lend to people with uncertain future incomes. However, some lenders specialize in these situations so do more investigation about your options.
A remortgage loan is simply a new loan that replaces an existing mortgage. It can be obtained through your existing lender or you can use a different lender, depending on where you can find the best deal. As part of the remortgage process, your old mortgage will be paid off and you may even have the option to cash out some of your home equity.
Why Would I Want A Remortgage Loan?
There are a number of reasons why you may want a remortgage loan:To take advantage of a lower interest rateTo pay for large expenses such as a child's education or weddingTo pay for remodelling or expansion of your existing homeTo pay off other higher rate debts like credit cards or car loansRemember that a remortgage loan is secured by your home, so it's important to make the payments on time and in full to maintain the loan in good standing.
Why Wouldn't I Want A Remortgage Loan?
In some situations, a remortgage loan might not be a good idea. For example, if it hasn't been very long since you obtained the mortgage or you got it at a very discounted rate you may face substantial penalties for early repayment. Or, if the balance on your existing loan is very small you may find that lenders are unwilling to underwrite a remortgage or that the fees they charge will be greater than the remortgage savings.Another reason not to remortgage is if your employment has recently changed, especially if you are newly self-employed. Lenders want to be reasonably sure you’ll be able to repay the remortgage amount and they are often reluctant to lend to people with uncertain future incomes. However, some lenders specialize in these situations so do more investigation about your options.
Subscribe to Posts [Atom]