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refinancing Your Home

Written by: Joseph Kenny

How old is your mortgage? If you took out your mortgage more
than a couple of years ago, it may be a good idea to consider
refinancing the loan. As house prices continue to rise you may
be able to get a considerably better rate. Your mortgage rate
will depend on many factors such as the value of your home, your
income, your Credit Score and prevailing interest rates in the
economy in general.

The fact is that many of these factors will have changed for
most people since they took out their mortgage. Across the
country, house prices have continued to rise at a good rate.
Almost everyone’s house is worth more today than it was when he
or she bought it. Add to this the fact that your income may have
increased significantly in the last couple of years. It’s not
something that’s guaranteed for anyone, but if your income has
increased significantly over the last couple of years, then that
may be something that would affect the terms of a mortgage. If
you’ve been on time with loan and other credit repayments, have
had a steady job and been living in the same address for quite a
while, your Credit Score will also be getting better and better.
And the biggest factor of all, prevailing interest rates, will
work in favour of many people.

Rates

If you have a variable rate mortgage, then it will fluctuate up
and down with interest rates. However, if your interest rate is
fixed, it could well be the rate it was fixed at was higher than
the rates available today. Current interest rates are still very
good, and there are a lot of mortgages out there that were fixed
at rates significantly higher than those lenders are selling at
the moment.

If some of these factors sound familiar to you and your
situation, you may want to consider refinancing your home. What
this basically means is taking out a new mortgage at more
preferable terms and using it to repay the old mortgage. There
will be fees involved. The re-financer will charge you a fee for
arranging the loan, and there may be early repayment fees on
your existing mortgage so you will wish to check these out
before you proceed. However, the savings can be far greater than
such fees. Many people can get well over a full percentage point
off their mortgage and the savings this can result in can be
hundreds of dollars a month. The fees for refinancing can be
paid off with just a couple of month’s savings. Then all you’re
left with is a lower mortgage repayment. It’s definitely
something worth considering.

About the author:

Joseph Kenny is the webmaster of the loan information sites http://www.selectloans.co.uk
/ and also http://www.ukpersona
lloanstore.co.uk. At the Personal Loan Store you can find
some of the latest se
cured loans explained in detail.