Thursday, March 26, 2009

Refinancing your mortgage tips

Ten Remortgaging Tips

Here are ten remortgaging tips to help you secure the best rate for your home.

1. There are many types of remortgage deals available. Speak to several lenders to find the most appropriate and low cost deal for you.

2. Ask the lender what the interest rate will be for a remortgage. If it is a fixed rate, be sure to determine the duration.

3. Based on your current mortgage and the new remortgage rate, the lender should be able to give you the amount you will be paying each month.

4. Ensure that you look into the current SVR or Standard Variable Rate since you may have to pay the lender’s SVR if you are opting for a fixed rate.

5. Ask the lender exactly what your monthly payments will be, based on the standard variable rate.

6. Ask the lender what the APR (Annual Percentage Rate) will be.

7. Before you carry on the process of remortgaging, ask the lender what the early redemption charges will be. While these may apply to mortgages that are changed, it is a good idea to ascertain if they apply to the new remortgage.

8. Are there any remortgage fees that will be incurred?

9. Determine how long the process will take. Some homeowners have stated it can take anywhere from a few days to a week.

10. How many times can you remortgage? The answer is that you can remortgage anytime you like. However, keep in mind that when you do, you will have to pay the early redemption charges each time.

In addition, MSN Money offers these valuable tips:

* “Don't use a lender which offers its best deals only to new customers
* Don't pay annual interest
* Don't pay a mortgage indemnity guarantee (MIG)
* Avoid extended redemption
* Avoid mortgages with insurance tie-ins”

If you are thinking about remortgaging, research the many websites online to ascertain not only what questions to ask potential lenders, but compare and contrast lenders so that you are afforded the best possible terms.

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