In any financial climate, searching for the best remortgage deals is like negotiating an unknown highway, at night, without a GPS, no map, while wearing a blindfold.
You may not only feel lost, it may seem as though you can’t even find the road.
Fortunately, all market indicators are pointing to a strong economic recovery; if you are thinking of pursuing an opportunity to remortgage your property, there hasn’t been a better time during the past few years than there is right now.
Talk to the financial lenders; ask them about the best remortgage deals currently available.
Most banks are offering a rate of less than five percent for a standard thirty year fixed rate mortgage loan.
The best remortgage deals for a fifteen year, as well as a ten loan are even lower.
Sometimes the best remortgage deals are available from other lending sources.
Keep in mind that banks are only one avenue to refinancing a mortgage.
There are several nontraditional lenders which, in many situations, can offer a percentage rate of sometimes one or two percentage points lower than those rates being offered by banks.
In some cases, there may be repayment charge for your original mortgage balance.
Depending on which laws your jurisdiction is subject to, you can make over payments of ten percent (or less) of your original mortgage balance per the mortgage anniversary year without incurring the early repayment charge.
You may be allowed to overpay by up to ten percent of the previous year end balance of the mortgage each year so the amount you may over pay decreases each year, because the amount that you owe also decreases each year.
Some remortgage lenders will allow you to make over payments of twenty percent of your monthly repayment instead of linking over payments to the outstanding loan amount.
It is definitely worth your while to check with the lender.
You may also decide to overpay (for example, five hundred dollars each month); this should be within the limits for avoiding an early repayment charge, no matter how they are calculated.
A few reports have recently been announced (depending on the area where you live), that some financial institutions are not going to raise lending rates until unemployment rates fall below a certain percentage (five to ten percent) which is not expected to occur until 2016.
Fixed rates for remortgages, it is predicted, should be competitively priced for the purpose of attracting more business, so it a five year fixed rate may be the best choice.
The five year fixed rate may be available at a rate of less than three percent; this is an advantage for you if the interest rates do increase before 2016.
The ten year fixed rate may not be the best choice because the five year rate will mean that you can overpay the mortgage (for example, by five hundred dollars rather than four hundred dollars each month).
This translates to meaning that when the five years is up, you have overpaid your mortgage by thirty thousand dollars instead of twenty four thousand with the ten year fixed rate.
When considering taking the standard repayments of capital that you will be making on your first mortgage, and assuming that there will be no change to your property’s value, this should translate that you will have access to the best remortgage deals available to borrowers who want to lend less than 65% of the value of their property.