Fixed Rate Remortgage vs Variable Rate Remortgage
Fixed rate remortgage loans have the advantage that you know from the start what your monthly payments are going to be throughout the life of the loan. Variable rate remortgage loans have the advantage that the initial interest rate (and therefore the initial payments) are low compared to those of fixed remortgage loans. The disadvantage is that they can get to be a lot higher.
The seventh remortgage advice is to stay away from variable interest remortgage loans unless you are certain (as in, you have government guaranteed income that’s going to go up) that your income will be higher. Or unless you can already afford the highest interest rate and payments your remortgage loan can have from the beginning.
In any case, consider carefully if it’s worth the risk, a 1% change upwards on a $100,000 mortgage loan translates into a monthly payment that’s some $63 higher if you start with 5% interest rate. Other things will also cost you more (taxes, heating, repairs and maintenance). Mortgage Brokers As Your Consultants
Mortgage Brokers and You – Part II
The eighth remortgage advice is to hire a mortgage broker only so they could give you remortgage advice and do all the calculations for you before you start the remortgage process.
You should ask them what kind of a remortgage you qualify for with the credit you currently have. Then ask them what kind of loan you’d qualify if you improved your credit scores 30 or 40 points. It is not difficult to improve credit scores 30 or 40 points in the space of a few months.
Get your credit report and take a close look. Remove mistaken information. Considering the amount of money involved, the money you stand to lose, that you can lose your home, it is always a good idea to get remortgage advice and if your credit is bad, credit counseling.
The last remortgage advice is more of an observation about remortgages than a remortgage advice. The people who get the best remortgages are the people who know the most about the remortgage process. Mostly because well-informed people know what to do with the remortgage advice they receive.
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