When it’s time to remortgage your home in Sudbury, many people get the process confused with home refinancing. This is because, like refinancing, remortgaging your home replaces your old home loan with an entirely new one. The difference between remortgaging and refinancing is that when you remortgage your home, you do so with a completely different lender. This is what throws some homeowners off, and has them wondering how to change their mortgage in Sudbury.
Before you remortgage, the first step is that you must fully understand your current mortgage. Often times a mortgage will have a prepayment penalty, and these can be steep. Make sure that your current home loan doesn’t have one; or if it does, that you’ll still be saving money from the remortgage before you go ahead with it. Also make sure that you understand how much time is left on the life of the loan and the current interest rate that you are paying.
The next step is to find a different lender. You can shop around and visit all the different lenders yourself, or you can visit a mortgage broker who can help. Lenders need to be compared so that you can make sure you’re getting a better deal on your remortgage, and that you’ll be happy with the new terms. It’s imperative that you take your time with this step! It’s an important one and if you don’t pay attention now, it could cost you when you have to remortgage later on down the line. Comparison shop very carefully, or speak to a broker who already knows the ropes and which lenders are offering what.
Once you’ve found a lender, you have probably already found a mortgage package with the right terms and rates for you as well, as these will be what you were comparing. This leaves the final step, which is to just pay off your existing mortgage and to get a new one with the new lender. This will involve closing the loan, which will also mean that you will have to pay off the loan at this time. Typically, the new mortgage loan will be able to help you do that.
Remortgaging your home in Sudbury can be a great option if you’re unhappy with your current mortgage and think you could save money on it, or that you could get lower monthly payments. But when doing so, it’s important that you fully understand all of your paperwork, both for the new loan and the old one, so that you actually do end up saving money.