One of the main reasons is to consolidate their debts and get lower monthly payments from the outstanding loans.
Another common reason to remortgage your house is to release equity from a house to use the funds raised from the equity for personal use.
If you are thinking of remortgaging your house, make sure that you have good reasons to refinance.
In a market where home values increase, the equity of the home also increases and thus allows mortgage borrowers to refinance their property and include any other loans and debts with high interest rates.
When refinancing, it is often to reduce the monthly financial obligations and thus have a peace of mind SO, is it worth remortgaging your house? In the past, the rule was that you should remortgage only when it was possible to reduce the mortgage interest rate by at least 2%.
In today's market, this rule may no longer apply.
It may well be worth remortgaging even if there is a decrease of 0.
50% If you think you need to refinance your property, you must consider the cons by costs such as notary fees, the penalties that may be incurred from remortgaging (if applicable), any additional mortgage arrangement fees and mortgage broker fees, just to name a few.
It is however possible to include these costs in the mortgage.
What do I need to remortgage my property? The process followed for remortgaging a property is pretty much the same as that of a new mortgage.
You will need to make note of the usual information required when you take out a new mortgage.
Have near you some of the following information and documents to enable you to submit an application for a remortgage:
- Your most recent mortgage statement
- A rough estimate of the value of your property.
- Your monthly payments (credit cards, personal loan, line of credit loan, etc..
- The approximate number of years, you have kept your property.
So talk to a qualified mortgage broker to get started on a successful mortgage application.