Is it worth it to renew a mortgage?
Renewing your mortgage is when you decide to get a new mortgage on an existing property. There are various reasons to consider renewing your mortgage, but the most significant benefit is that you will end up saving thousands of dollars annually on your mortgage repayments. You usually renew your mortgage when your current mortgage plan is nearing its end. Over time, if the value of your property has increased, or you are concerned about the rise in rates, renewing your mortgage is the best way to save money and give you peace of mind. The experts at 1ONEFUND Financial can offer you the best solutions when it comes to renewing your mortgage.
Below-mentioned is a few reasons to renew your mortgage:
When your existing mortgage deal is expiring
Most mortgage plans are available for a limited period. However, when the period comes to an end, the lender will offer you a standard variable rate. This rate is set by your lender and can be increased at any point. This rate is usually higher than the rate you were paying previously, which will increase your monthly repayments. By renewing your mortgage, you can secure a lower interest rate and end up saving a lot of money.
You have more equity in your property
With every mortgage repayment you make, your equity in the property builds up. For example, if you place a 10% deposit, you own 10% of the property. But over time, with your monthly repayments, you will end up owning much larger equity. By renewing, you will be borrowing at a lower loan-to-value ratio (LTV) than what you previously bought. As the LTV gets lower, lenders tend to usually offer lower interest rates, which translates into you saving a considerable amount of money on your mortgage repayments.
You are looking for a better deal
When you renew your mortgage, you are looking to get a better deal than your previous one. It should match your current financial situation, as well as your future needs. You might get a deal that offers extra flexibility on monthly repayments or the ability to overpay etc.
You are looking to borrow more money
Renewing your mortgage is an ideal way to release some of the funds you have built up in your property through equity.
Can renewing my mortgage save me money?
Yes, it can, if you get a cheaper rate, you can end up saving thousands of dollars. The bank rate at times can be unpredictable, so, renewing your mortgage to a fixed rate will give you peace of mind. Additionally, there are multiple costs that you must consider, and when they all add up, you still won’t be able to save money immediately. The reap the benefits of mortgage renewal usually takes a few months, and in some instances, a few years.
Contact the experts at 1ONEFUND Financial today, at 1-833-201- 3863, to find out more information about renewing your mortgage or for further details.