Title:
Is the Time Right
for You to Re-mortgage?
Word Count:
548
Summary:
Five reasons why
you could benefit from a re-mortgage and how that ‘benefit’ can be turned into
a real profit for your future.
Keywords:
mortgage, home
loan, equity, finance, re-mortgage, property, real estate, investment,
retirement, savings
Article Body:
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.