Are you on the fence about whether or not to refinance your home or business? If you're not sure what to do, here are the top five reasons why remortgaging might be a good choice.
One benefit of remortgaging is that it helps your credit score.
Like most people and couples, you probably got your first mortgage when you were younger. This means that when you signed your contract, you didn't have as much time to build up a good credit history.
But over time, you've probably built up a pretty good credit report, especially if you've paid all or almost all of your bills on time and in full.
So, why not look into a remortgage as a reward for your good credit? You will be able to get a lower interest rate, as stated in the next advantage...
Lower interest rates are the second benefit of refinancing.
Yes, you read that right. Even if you think your mortgage interest rate is good, you may be able to beat it by a significant amount with a remortgage.
Imagine getting a new mortgage for the same amount you're paying now, but with lower monthly payments. That's like getting a raise all at once, and who wouldn't want that? It's a great way to make extra money without having to dig through your couch cushions to find loose change.
Third, you may be able to consolidate your debts.
Do you have a lot of bills that you have to pay every month? Are your creditors calling you all the time, day and night? Do you feel like you can't breathe because of how much you owe to companies and groups?
If you are in this situation, a lender may be able to help you with a remortgage debt consolidation package. So, you'll only have to pay one bill each month instead of many.
Remortgaging is a good idea for four reasons.
Depending on how long you've had your mortgage, you've probably built up some equity, which is the amount you've paid that has gone toward your principle balance.
In turn, you can get a remortgage for MORE than your current mortgage. This is a way to temporarily get back the equity in your home or property. This way, you can use the lump sum for emergencies or small expenses, and with lower remortgage interest rates, you may still end up paying the same monthly payment that you had been.
Remortgaging is a good way to get out of bad lending relationships.
Do you hate your current mortgage lender as much as you hate yourself? If so, remortgaging can be a great way to end a bad business relationship and start a new one with a company that will actually value your business. Yes, you may feel some loyalty or commitment to your original lender, but if they aren't meeting your needs, it's time to remortgage with someone else. At the end of the day, it's your life, and you should be happy with all the business choices you make.
