Refinancing Your Home

Refinancing your home
How old is​ your mortgage? If you​ took out your mortgage more than a​ couple of​ years ago,​ it​ may be a​ good idea to​ consider refinancing the​ loan .​
As house prices continue to​ rise you​ may be able to​ get a​ considerably better rate .​
Your mortgage rate will depend on​ many factors such as​ the​ value of​ your home,​ your income,​ your credit score and prevailing interest rates in​ the​ economy in​ general .​
The fact is​ that many of​ these factors will have changed for most people since they took out their mortgage .​
Across the​ country,​ house prices have continued to​ rise at​ a​ good rate .​
Almost everyone’s house is​ worth more today than it​ was when he or​ she bought it .​
Add to​ this the​ fact that your income may have increased significantly in​ the​ last couple of​ years .​
It’s not something that’s guaranteed for anyone,​ but if​ your income has increased significantly over the​ last couple of​ years,​ then that may be something that would affect the​ terms of​ a​ mortgage .​
If you’ve been on​ time with loan and other credit repayments,​ have had a​ steady job and been living in​ the​ same address for quite a​ while,​ your credit score will also be getting better and better .​
And the​ biggest factor of​ all,​ prevailing interest rates,​ will work in​ favour of​ many people.
Rates
If you​ have a​ variable rate mortgage,​ then it​ will fluctuate up and down with interest rates .​
However,​ if​ your interest rate is​ fixed,​ it​ could well be the​ rate it​ was fixed at​ was higher than the​ rates available today .​
Current interest rates are still very good,​ and there are a​ lot of​ mortgages out there that were fixed at​ rates significantly higher than those lenders are selling at​ the​ moment .​
If some of​ these factors sound familiar to​ you​ and your situation,​ you​ may want to​ consider refinancing your home .​
What this basically means is​ taking out a​ new mortgage at​ more preferable terms and using it​ to​ repay the​ old mortgage .​
There will be fees involved .​
The re-financer will charge you​ a​ fee for arranging the​ loan,​ and there may be early repayment fees on​ your existing mortgage so you​ will wish to​ check these out before you​ proceed .​
However,​ the​ savings can be far greater than such fees .​
Many people can get well over a​ full percentage point off their mortgage and the​ savings this can result in​ can be hundreds of​ dollars a​ month .​
The fees for refinancing can be paid off with just a​ couple of​ month’s savings .​
Then all you’re left with is​ a​ lower mortgage repayment .​
It’s definitely something worth considering.
Refinancing Your Home Refinancing Your Home Reviewed by Henda Yesti on August 24, 2018 Rating: 5

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