Remortgage: A second opportunity knocking
(PRLEAP.COM) Remortgaging is the new mantra doing the rounds. The fear of the refinance bubble burst and the gradual rise in the interest rates have been accounted as reasons for the remortgage wave. The number of mortgage applications for remortgage has increased to about 56% compared to 50% a year ago.
There have been traditionally a few reasons why people have gone in for a remortgage. The first being , to save money. The rates they had locked in at the time of closing must have been far above that of the present rates. They remortgage with the present low rates and thus save on monthly payments. Thus they can effectively build on their savings. This reason has gained in popularity as more people have realized the importance of financial security and practicing self –restraint in money matters.
The second widely found use of a remortgage is to make home improvements .This could range from repairs to house extensions. These help to strengthen and build on your home equity. Today a lesser number of people have shown interest in investing the loan amount back to the house. This is because of the predatory lending practices wherein the borrowers believe that a major part of the house appreciation amount goes into the lender’s pocket. This is in fact what really happens when the lenders don’t read through the disclosure document thoroughly. And what escapes them is the shared appreciation clause which lenders en-cash.
The other reasons why people are remortgaging are to finance the purchase of a second property and to meet unforeseen expenses. Both these reasons are on the decline. The only rise seems to be to save money and investing in stocks and shares. Sometimes this money goes into paying off credit card and other unsecured debts.
The experts forecast a 0.9% increase in the mortgage rates in the first quarter of 2005. This would mean at the end of the year the rates are estimated to reach close to 10%.
About a third of the property investors are considering a remortgage according to a survey conducted by Homebuyer Show. About one in ten plan to spend their remortgage to buy a car or a holiday. To buy a car is not a wise decision using a mortgage. After all you will be repaying the loan for 15-20 years for a car which will be destined to the scrap iron heap in two years’ time.
Before the rates skyrocket higher you must consider remortgaging and lock in the low rates available today. For best returns redirect the money into your home and try the fixed rates rather than the floating rates.
For an in-depth study on remortgage and other mortgage terms by way of objective information resources visit us at:
http://www.mortgagefit.com
http://www.mortgagefit.com/remortgage.html
For a detailed discussion or queries in this connection:
http://www.mortgagefit.com/discuss/login.html
There have been traditionally a few reasons why people have gone in for a remortgage. The first being , to save money. The rates they had locked in at the time of closing must have been far above that of the present rates. They remortgage with the present low rates and thus save on monthly payments. Thus they can effectively build on their savings. This reason has gained in popularity as more people have realized the importance of financial security and practicing self –restraint in money matters.
The second widely found use of a remortgage is to make home improvements .This could range from repairs to house extensions. These help to strengthen and build on your home equity. Today a lesser number of people have shown interest in investing the loan amount back to the house. This is because of the predatory lending practices wherein the borrowers believe that a major part of the house appreciation amount goes into the lender’s pocket. This is in fact what really happens when the lenders don’t read through the disclosure document thoroughly. And what escapes them is the shared appreciation clause which lenders en-cash.
The other reasons why people are remortgaging are to finance the purchase of a second property and to meet unforeseen expenses. Both these reasons are on the decline. The only rise seems to be to save money and investing in stocks and shares. Sometimes this money goes into paying off credit card and other unsecured debts.
The experts forecast a 0.9% increase in the mortgage rates in the first quarter of 2005. This would mean at the end of the year the rates are estimated to reach close to 10%.
About a third of the property investors are considering a remortgage according to a survey conducted by Homebuyer Show. About one in ten plan to spend their remortgage to buy a car or a holiday. To buy a car is not a wise decision using a mortgage. After all you will be repaying the loan for 15-20 years for a car which will be destined to the scrap iron heap in two years’ time.
Before the rates skyrocket higher you must consider remortgaging and lock in the low rates available today. For best returns redirect the money into your home and try the fixed rates rather than the floating rates.
For an in-depth study on remortgage and other mortgage terms by way of objective information resources visit us at:
http://www.mortgagefit.com
http://www.mortgagefit.com/remortgage.html
For a detailed discussion or queries in this connection:
http://www.mortgagefit.com/discuss/login.html
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