Remortgaging is an option for homeowners who want to renegotiate the terms of their mortgage. Here are some signs that you’ll benefit from remortgaging your home.
1. If Rates are Great
If the mortgage rate in Utah is at its best, you can have the property remortgaged and, therefore, benefit from the said rate.
2. If You Have a Great Credit Score
If your credit score is now so much better than your credit score at the time of application, you might as well remortgage your home and perhaps get better rates.
Check to see how much you’ll be paying each month with the new rates compared with your old one. For better results, remortgage with your current lender first to see how they’ll handle your account.
3. If You Have Good Equity
Equity is defined as the portion of the home that you already own because you’ve already paid for it. If the value of your home has gone up and you have 70 percent equity, this means that you’re already starting with a high deposit. The effect of this is better rates, which should help you save money over time.
4. If You’re Not Happy with the Conditions
If your status hasn’t changed, but you’re not happy with the terms and conditions of the mortgage, you can choose to have it remortgaged. This works as a novation, allowing you to request some clauses added in or removed in your favor.
If you’ve proven to be a good debtor by this point, getting concessions from the lender should not be a problem. If you’ve applied for a fixed term mortgage, make arrangements for a remortgage even before the term ends.
It stands to reason that if your mortgage debt remaining is small, there’s no need to remortgage. It’s best to stick it out unless you have really compelling reasons for it.