Remortgaging can be a great option for homeowners looking to free up a little of the money they’ve invested in their property, perhaps to pay for home repairs or an extension, or for homeowners that feel they could be paying lower monthly premiums. Let Wharton Law in Atlanta talk you through some of the things you need to keep in mind when weighing up your options and find out:
Is Remortgaging Right for You?
Keep your specific goals in mind at all times throughout the remortgaging process. If you aren’t going to get exactly what you want, it may well not be worth your time to go through with the process, and it may in fact end up costing you money. If you’re looking for lower monthly premiums, make sure to check the state of the market and professional’s predictions about the future of interest rates. If interest rates are higher now than they were when you signed your current deal, you’re unlikely to be able to find a new contract with lower premiums, and if interest rates look set to drop in future, it may well be worth waiting. If you aren’t planning to stay in your current property for a decent number of years, remortgaging is almost definitely the wrong choice for you.
Check your current deal
Many mortgages carry penalties for ending the contract early, so make sure to take a close look at your current mortgage’s paperwork and find out about any fees you might incur by switching to a new deal.
Find a new deal
Check out what other lenders are offering, but be careful to keep in mind fees and charges associated with signing up to a new mortgage deal. Deals often include ‘points’, fees charged at closing, so make certain to ask lenders to clearly state in dollars what you can expect to pay. Many deals also require that you purchase private mortgage insurance if you aren’t able to put down a large deposit, so be sure to enquire about this, too. Of course, the principal goal is to find a low interest rate, but it’s worth considering if you might benefit from a variable-rate deal in which the rate you pay will vary depending on the state of the market in future.
Ask your current lender to match a new deal
Many lenders will offer more lucrative deals if you tell them you will switch lenders otherwise, so it pays to check with your current lender before making the move. Sticking with the same lender can save you not just time and effort, but also money from costs associated with switching, so you may as well ask!
If you decide to remortgage or if you decide to downsize instead, you’ll need a professional legal team behind you to make sure the process runs smoothly. Wharton Law offer a host of services, specializing in title searches and title insurance in Atlanta. Call (404) 965-2767 to learn more about our services.
Check our previous posts for tips and advice on topics such as making an offer on a new home.