Do you want extra money on the equity of your home? Do you already have a mortgage on your home? Then remortgage is the option. Remortgage Loans means to replace an existing mortgage with a new one. In this process the old mortgage is completely paid off and the borrower gets a new mortgage and even some cash from the equity on the home.
Remortgage Loans may help those who are looking out for a lower interest rate on the loan, need cash to pay large expenses like a wedding or child's education expenses, or have huge credit card bills to pay off.
There may be some circumstances which financial advisers advise against getting a remortgage. Recently taken remortgages generally have discounted rates and will incur some heavy penalties for early repayment. Other cases may be when loan balance is very small and the lenders may find it unattractive to remortgage. Even when they are willing the lenders usually charge huge fees which will be greater than the savings of a proposed remortgage loan.
Remortgage loans are a good option for those who want to do some debt consolidation. Debt Consolidation of credit card bills and other bills into a single loan makes repayment very easy.
The process of the remortgage loan is easy and simple. The best way is to start a remortgage with the existing mortgage lender. Existing lenders generally provide special offers and loan rates for the remortgage loan. Even then it is sensible to check other lenders who remortgage. The remortgage market is highly competitive and great rates are available to those seeking remortgage loans.
Remortgage loan means closing the old mortgage with the first loan provider. The borrower then takes a new loan with a new company and the old loan is fully closed.
The remortage loan process is followed in three simple steps. The first one being the value of property will be sought with a professional appraiser. Next a loan application is completed and the lender will receive a title report. The previous lender is paid in full with the engagement of a solicitor in the process.
Many think that remortgage and refinance as one and the same terms. Though both are the same, the main difference is that remortgage loans involve closing of an existing mortgage and starting afresh with a new company.
Refinance is when the old lender refinances the loan.
A remortgage loan is the best option for those who want to reduce their monthly payments and thereby reduce the interest. Remortgage Loan is good for those who want extra cash to pay of their bills and reduce their burden.
The straightforward process of remortgaging can be very easy and simple for those who follow the steps clearly. Opt for a remortgage loan if you want cash and pay less interest. It can save you money and headaches.
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Monday, May 31, 2010
Remortgaging: The Wise Thing to Do
For the uninformed, remortgaging is the process of paying off the existing mortgage with the proceeds of a new mortgage using the same property as security. The need to remortgage arises out of a number of reasons. It is also advisable under the current circumstances when the realty landscape has changed. The smart investor is always on the lookout for better deals and it always pays to be smart, doesn't it?
While the ordinary people are worrying themselves sick over the economic scenario, the smart investor is already looking out for that remortgage. Real estate prices have fallen and lenders desperate to meet year end targets are expected to launch attractive schemes. The time seems just right for that remortgage. A remortgage can help in the following ways:
Reduce Cash Flow
Cash Flow is the balance of cash at the end of a specific period of time. Remortgaging with a lower interest rate can reduce your monthly installments and eventually your yearly cash flow.
Get Better Loan to Value
Loan to Value (LTV) is the mathematical calculation that determines the risk in a mortgage. It is calculated as LTV = Amount of Loan / Amount of the property. Suppose the value of the property is $200000 and the amount granted by the bank is 1500000. Then LTV is calculated as 1500000/2000000 = 0.75 or 75%. Now suppose if you go for a remortgage and since the price of the property has reduced, you get a better LTV. Usually full financing is only available for customers with a rock solid credit history. But in the above scenario in the present conditions the remortgage could result in a full financing.
Release Equity
A remortgage can also help release equity associated with the mortgage. If the principal is reduced, the interest will also be lower and thus lower cash flow.
How to Remortgage
A good place to start is usually with the existing lender. Special offers or lower rates will be available for current customers who want to remortgage. But shop around. There might be better deals in the market because the remortgage marketplace is very competitive and there are lots of great rates available.
The steps involved in securing a remortgage are:
1. The lender will want to know the value of your home, usually by having a professional appraiser inspect the property.
2. You will need to complete a fresh loan application.
3. The lender will require conveyance work to secure a title report.
4. A solicitor will be engaged to ensure your previous lender is paid in full and to release any additional funds directly to you.
Check out the various options available for fixed as well as floating interest rates. Under the volatile conditions of the current economy, the fixed rates will be higher but might be stable for the near future. If you have a high mortgage or a longer time period, it is always advisable to go in for fixed rates. At the same time, the floating rates will keep the out goings less assuming the economy stabilizes for a while.
Even though the economic conditions do not look encouraging, the time is just right to reduce your mortgage and save a considerable amount of money.
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While the ordinary people are worrying themselves sick over the economic scenario, the smart investor is already looking out for that remortgage. Real estate prices have fallen and lenders desperate to meet year end targets are expected to launch attractive schemes. The time seems just right for that remortgage. A remortgage can help in the following ways:
Reduce Cash Flow
Cash Flow is the balance of cash at the end of a specific period of time. Remortgaging with a lower interest rate can reduce your monthly installments and eventually your yearly cash flow.
Get Better Loan to Value
Loan to Value (LTV) is the mathematical calculation that determines the risk in a mortgage. It is calculated as LTV = Amount of Loan / Amount of the property. Suppose the value of the property is $200000 and the amount granted by the bank is 1500000. Then LTV is calculated as 1500000/2000000 = 0.75 or 75%. Now suppose if you go for a remortgage and since the price of the property has reduced, you get a better LTV. Usually full financing is only available for customers with a rock solid credit history. But in the above scenario in the present conditions the remortgage could result in a full financing.
Release Equity
A remortgage can also help release equity associated with the mortgage. If the principal is reduced, the interest will also be lower and thus lower cash flow.
How to Remortgage
A good place to start is usually with the existing lender. Special offers or lower rates will be available for current customers who want to remortgage. But shop around. There might be better deals in the market because the remortgage marketplace is very competitive and there are lots of great rates available.
The steps involved in securing a remortgage are:
1. The lender will want to know the value of your home, usually by having a professional appraiser inspect the property.
2. You will need to complete a fresh loan application.
3. The lender will require conveyance work to secure a title report.
4. A solicitor will be engaged to ensure your previous lender is paid in full and to release any additional funds directly to you.
Check out the various options available for fixed as well as floating interest rates. Under the volatile conditions of the current economy, the fixed rates will be higher but might be stable for the near future. If you have a high mortgage or a longer time period, it is always advisable to go in for fixed rates. At the same time, the floating rates will keep the out goings less assuming the economy stabilizes for a while.
Even though the economic conditions do not look encouraging, the time is just right to reduce your mortgage and save a considerable amount of money.
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Tuesday, May 25, 2010
No Credit Check Loans: Get Funds without Complexity
Emergency occurs in anybody's life at any point of time without giving any indication in advance. At the sudden arrival of urgent usually in the mid of the month, you might not left with enough cash in hand. Also having a bad credit score could be a biggest hurdle you might face in arranging cash to meet your needs. This hurdle can be easily solved by opting for no credit check loans as these loans do not involve any credit verification process. These loans can be freely applied by bad creditors to get quick funds for meeting their urgent needs on time.
These loans are a good financial service for a person who is in need of funds but unable to fetch due to having bad credit score. Under these loans all bad credit factors like CCJ, IVA, bankruptcy, late payments etc are acceptable.
However, there are certain requirements which you need to meet for qualifying for these loans. This includes eighteen years of age or above, proof of a regular employment, a regular monthly income and an active checking account.
These loans can be used for a number of purposes like car repairing, credit card dues, urgent traveling expense, sudden medical bill etc. Through these loans you can avail a loan amount varying from £100-£1500 for a short term of 14-21 days. These loans are provided according to your financial status and repayment ability. These loans carry slightly high interest rates, as these are offered for short period only. However, a careful online research can help you to get best loan deal at cost-effective rates.
No credit check loans help you to deal with the emergency situations on time as there is no involvement of document faxing, credit checking and lengthy paperwork. As a result of which the loan approval processing is fast. Later the required loan amount will get deposit in your account in least possible time.
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These loans are a good financial service for a person who is in need of funds but unable to fetch due to having bad credit score. Under these loans all bad credit factors like CCJ, IVA, bankruptcy, late payments etc are acceptable.
However, there are certain requirements which you need to meet for qualifying for these loans. This includes eighteen years of age or above, proof of a regular employment, a regular monthly income and an active checking account.
These loans can be used for a number of purposes like car repairing, credit card dues, urgent traveling expense, sudden medical bill etc. Through these loans you can avail a loan amount varying from £100-£1500 for a short term of 14-21 days. These loans are provided according to your financial status and repayment ability. These loans carry slightly high interest rates, as these are offered for short period only. However, a careful online research can help you to get best loan deal at cost-effective rates.
No credit check loans help you to deal with the emergency situations on time as there is no involvement of document faxing, credit checking and lengthy paperwork. As a result of which the loan approval processing is fast. Later the required loan amount will get deposit in your account in least possible time.
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Friday, May 21, 2010
Adverse Credit Remortgage: Paying Monthly Installments Towards a Mortgage Loan?
You will come across a lot of people who are paying huge amount of monthly installments towards a mortgage loan. These monthly installments are a burden for most of us. It can affect our financial situation and repaying plans. If you are planning to reduce the monthly installments and if you are planning to consolidate your debts then a remortgage loan is the best way. However, you have having a problem of adverse credit. It is true, that with adverse credit you may get a refusal from numerous lenders and lending institution. You will be happy to know that an adverse credit remortgage is specially designed for people who are suffering from a bad or a poor credit history.
If you are thinking that with poor credit will not help you to get a loan then you are wrong. An adverse credit remortgage will help you a lot. With the help of adverse credit remortgage loan you will be able to shift your lender. You should know that a new lender might help you to get a better rate.
You will come across lot of lending institutions which will offer you an adverse credit remortgage loans. These loans will also offer you some cash outs through which you can raise some extra funds for your personal expense. This extra money will help you fulfill some of your basic requirements like home improvements, buying a vehicle, and many more.
Even though you have an adverse credit you may get an adverse remortgage loan with a lower rate of interest. An adverse remortgage loan is a type of secured loan which will require your property as a security against the loan amount. You will be happy to know that adverse credit remortgage loan will allow you to have longer repaying time. Longer repaying time will help you to reduce your monthly installment. A reduced monthly installment will help you to decrease your financial burden.
If you are planning to have an adverse credit remortgage loan then it is better for you to search on the World Wide Web. Over the World Wide Web, you will come across lot of lending institutions which will help you to get an adverse credit remortgage loan. However, it is better for you to compare the quotes of some lenders. Comparing will help you to get a better deal.
You will be happy to know that an adverse remortgage loan will help you to increase your credit score. If you are able to repay such loans on time then it will improve your credit score. A good credit score will help you to get future loans easily.
It is better to choose a deal that suits your financial needs. You should go through the terms and condition of the lender. It is advisable for you to understand the fact that an adverse credit remortgage loan is the best way to smoothen your financial future. It is true that an adverse credit remortgage loan has the capacity to restructure your financial situation.
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If you are thinking that with poor credit will not help you to get a loan then you are wrong. An adverse credit remortgage will help you a lot. With the help of adverse credit remortgage loan you will be able to shift your lender. You should know that a new lender might help you to get a better rate.
You will come across lot of lending institutions which will offer you an adverse credit remortgage loans. These loans will also offer you some cash outs through which you can raise some extra funds for your personal expense. This extra money will help you fulfill some of your basic requirements like home improvements, buying a vehicle, and many more.
Even though you have an adverse credit you may get an adverse remortgage loan with a lower rate of interest. An adverse remortgage loan is a type of secured loan which will require your property as a security against the loan amount. You will be happy to know that adverse credit remortgage loan will allow you to have longer repaying time. Longer repaying time will help you to reduce your monthly installment. A reduced monthly installment will help you to decrease your financial burden.
If you are planning to have an adverse credit remortgage loan then it is better for you to search on the World Wide Web. Over the World Wide Web, you will come across lot of lending institutions which will help you to get an adverse credit remortgage loan. However, it is better for you to compare the quotes of some lenders. Comparing will help you to get a better deal.
You will be happy to know that an adverse remortgage loan will help you to increase your credit score. If you are able to repay such loans on time then it will improve your credit score. A good credit score will help you to get future loans easily.
It is better to choose a deal that suits your financial needs. You should go through the terms and condition of the lender. It is advisable for you to understand the fact that an adverse credit remortgage loan is the best way to smoothen your financial future. It is true that an adverse credit remortgage loan has the capacity to restructure your financial situation.
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Thursday, May 20, 2010
Commercial Remortgage Enables You to Tap Equity in Your Property
Opting for a commercial re mortgage is no different than availing a residential re mortgage. In both you do so to enjoy better terms on your original mortgage. There are many reasons why a business entity would like to opt for commercial re mortgage. Two of the prominent reasons are enjoying better interest rates and the other is to get some extra cash that can help you to carry out repair or renovation work.
In majority of the cases, business entities opt for commercial re mortgage to borrow cash for their various operational activities. Whenever you are planning to opt for commercial re mortgage, you should be prepared that you can make payments regularly throughout the term of the loan.
When you opt for re mortgage for commercial purpose, you may be doing so to enjoy lower interest rates. If you are able to take out the re mortgage, your mortgage payments will also be lowered since the interest rate you now enjoy is lower as compared to the interest rate you were entitled to prior to opting for commercial re mortgage. It may be the case that when you had availed of the original mortgage, the rate of interest was high. But the prevailing interest rate is lower than the original interest rate which explains why you want to opt for commercial re mortgage.
The business entity should be confident that product sale should be sound so that the income is secured. In case you are planning to re mortgage for getting access to some extra cash, the same should be communicated to the lender. Generally lenders readily agree to give you access to extra cash as taking out a larger re mortgage also means that they will be getting back more. The more equity a property has, more is its worth. In case the business owner defaults or falls behind on payments, the risk involved is the same as that of a residential re mortgage. Lenders will usually evaluate your finances to find out your repayment capacity.
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In majority of the cases, business entities opt for commercial re mortgage to borrow cash for their various operational activities. Whenever you are planning to opt for commercial re mortgage, you should be prepared that you can make payments regularly throughout the term of the loan.
When you opt for re mortgage for commercial purpose, you may be doing so to enjoy lower interest rates. If you are able to take out the re mortgage, your mortgage payments will also be lowered since the interest rate you now enjoy is lower as compared to the interest rate you were entitled to prior to opting for commercial re mortgage. It may be the case that when you had availed of the original mortgage, the rate of interest was high. But the prevailing interest rate is lower than the original interest rate which explains why you want to opt for commercial re mortgage.
The business entity should be confident that product sale should be sound so that the income is secured. In case you are planning to re mortgage for getting access to some extra cash, the same should be communicated to the lender. Generally lenders readily agree to give you access to extra cash as taking out a larger re mortgage also means that they will be getting back more. The more equity a property has, more is its worth. In case the business owner defaults or falls behind on payments, the risk involved is the same as that of a residential re mortgage. Lenders will usually evaluate your finances to find out your repayment capacity.
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Wednesday, May 19, 2010
Saving Money with Remortgages
Remortgages means changing your existing mortgage from one lender to another to get yourself a better deal.
Out of five home loans were actually mortgages as millions of canny borrowers took advantage of the UK's hugely competitive mortgage market. Why Remortgaging? There may be many reasons for remortgage, like bargaining with existing lender to review the current payment structure, the ultimate gain should be Saving Money.
If you have lender's standard mortgage known as SVR (Standard Variable Rate) then chances are you are paying too much. Lenders rely on these loyal customers to find the new offers to attract new borrowers. You pay over the odds allows someone else to play the system and profit. Why shouldn't you be the one paying less?
For many people mortgage is the biggest financial commitment. And if Money saving method applied to largest financial area of your commitment then it can save Big Money. If you are kind of person who shops around to purchase a cheap cell phone, DVD player, a television etc. then you are missing a big trick to save money on your mortgage.
To give some idea of the saving up for grabs, you had a repayment mortgage for £100,000.and were currently paying 6% interest. Moving halfway through your 25 year term to a 5% deal would save you almost £5,000. And if you keep on changing to the best deals available every couple of years you could save even bigger. And sometimes you even don't need to change the existing lender. You may talk to your existing lender for a better deal and as it makes money from your debt so they might won't let it loose anyway.
However though remortgage saves you money, it involves a price. You may pay the penalty to leave the existing lender, a fee to join the new lender and may face legal bills too. So this doesn't means you shouldn't remortgage. Do your calculations before taking the leap.
There are other reasons along with Money saving to avail the remortgaging, like you are moving up on the property ladder and need more money Or you need extra cash and want to take advantage of the fact that your house gone up in value Or your mortgage doesn't fit anymore (changing job, back to education, going traveling etc.) whatever the reason there are mortgages that will let you take payment holidays.
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Out of five home loans were actually mortgages as millions of canny borrowers took advantage of the UK's hugely competitive mortgage market. Why Remortgaging? There may be many reasons for remortgage, like bargaining with existing lender to review the current payment structure, the ultimate gain should be Saving Money.
If you have lender's standard mortgage known as SVR (Standard Variable Rate) then chances are you are paying too much. Lenders rely on these loyal customers to find the new offers to attract new borrowers. You pay over the odds allows someone else to play the system and profit. Why shouldn't you be the one paying less?
For many people mortgage is the biggest financial commitment. And if Money saving method applied to largest financial area of your commitment then it can save Big Money. If you are kind of person who shops around to purchase a cheap cell phone, DVD player, a television etc. then you are missing a big trick to save money on your mortgage.
To give some idea of the saving up for grabs, you had a repayment mortgage for £100,000.and were currently paying 6% interest. Moving halfway through your 25 year term to a 5% deal would save you almost £5,000. And if you keep on changing to the best deals available every couple of years you could save even bigger. And sometimes you even don't need to change the existing lender. You may talk to your existing lender for a better deal and as it makes money from your debt so they might won't let it loose anyway.
However though remortgage saves you money, it involves a price. You may pay the penalty to leave the existing lender, a fee to join the new lender and may face legal bills too. So this doesn't means you shouldn't remortgage. Do your calculations before taking the leap.
There are other reasons along with Money saving to avail the remortgaging, like you are moving up on the property ladder and need more money Or you need extra cash and want to take advantage of the fact that your house gone up in value Or your mortgage doesn't fit anymore (changing job, back to education, going traveling etc.) whatever the reason there are mortgages that will let you take payment holidays.
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Friday, May 14, 2010
Remortgages- Bad Idea to Let the Bank Decide the Term
It seems people don't think they have any say in the remortgage process beyond accepting or not accepting the rate. They let the lender decide the term. That's a bad idea that has really big consequences.
The lender (or the mortgage broker) usually suggests 30-year amortization on home loans. Sometimes they also suggest 15. They never suggest that you remortgage so that you stay within the 30 year term of the original
mortgage. I'm sure a lot of them don't even think about anything else except 30 and 15 years. Maybe because they are so prevalent.
Here are 2 examples that show you the difference between remortgaging the usual way and remortgaging the way that benefits you the most.
Remortgaging, 30-Year Term Each Time
A home owner and her husband, let's call them Jack and Jill, buy a 3-bedroom house for $375,000. They take a $300,000 mortgage loan at 7% amortized over 30 years to do so. Their closing costs are $3,000 and they roll them into the mortgage. So they end up owing the bank $303,000.
After 3 years, they remortgage. Their new loan is amortized over 30 years, at 6%. They do not roll the closing costs into the loan, do not take cash out. After 4 years in the 2nd loan, they remortgage again. This time at 5%. Again the loan is amortized over 30 years and they don't take cash out or roll the closing costs into the loan.
The original loan has monthly payments of $2,015.87. In 3 years Jack and Jill end up paying $72,571 and reducing their principal to $293.387.
The 1st remortgaging has monthly payments of $1,759, reduces the principal to $183,035. Four years of payments (totaling $84,432) whittle down the principal to $277,956. The 2nd remortgaging comes with monthly payments to $1492. It takes the principal to $0.00. 360 monthly payments add up to $535,680.
If Jack and Jill had not refinanced, their $303,000 home loan would have taken $723,709 to pay off. Refinancing it the way he did cost him $692,683.
On the good side, Jack and Jill reduced their payments by $524; the total amount they paid over the life of the loan by $31,025. On the bad side, they spent a lot more money than they had to, over $90,000 more by the time they were done making the last payment.
Remortgaging - 30 Years Total
Jake and Jill take out the first home mortgage loan for 30 years. They remortgage after 3 years but the loan is amortized over 27 years. They remortgage again after 4 years but the loan is amortized over 23 years.
The first loan has a monthly payment of $2,015.87 and in 3 years Jack and Jill end up paying $72,571 and reducing the principal to $293.387, just like in the first scenario (obviously).
The 1st time they remortgage, they reduce his payments to $1,831. And in 4 years they get the principal down to $274,168 by paying a total of $69,566.
The 2nd time they remortgaging, they reduce the principal to $0.00, like in the first scenario, but they have to pay only $460,230 to do so (the monthly payments are $1,674).
With this scenario, Jack and Jill own the house 7 years sooner, reduce their monthly payments by $342, BUT they save $90,315 over refinancing as in scenario number 1 and $121,341 vs not refinancing at all. (This way, they total amount they spent only $602,367).
The later in the life of a home loan you remortgage, the worse off you are if accept a 30-year loan again. The higher the interest rate, the worse off you are if accept a 30-year loan again. The larger the amount you borrow, the worse off you are if accept a 30-year loan again.
In conclusion, it's a good idea to remortgage (refinance). It's a bad idea to remortgage with 30-year terms if you can avoid it.
The lender (or the mortgage broker) usually suggests 30-year amortization on home loans. Sometimes they also suggest 15. They never suggest that you remortgage so that you stay within the 30 year term of the original
mortgage. I'm sure a lot of them don't even think about anything else except 30 and 15 years. Maybe because they are so prevalent.
Here are 2 examples that show you the difference between remortgaging the usual way and remortgaging the way that benefits you the most.
Remortgaging, 30-Year Term Each Time
A home owner and her husband, let's call them Jack and Jill, buy a 3-bedroom house for $375,000. They take a $300,000 mortgage loan at 7% amortized over 30 years to do so. Their closing costs are $3,000 and they roll them into the mortgage. So they end up owing the bank $303,000.
After 3 years, they remortgage. Their new loan is amortized over 30 years, at 6%. They do not roll the closing costs into the loan, do not take cash out. After 4 years in the 2nd loan, they remortgage again. This time at 5%. Again the loan is amortized over 30 years and they don't take cash out or roll the closing costs into the loan.
The original loan has monthly payments of $2,015.87. In 3 years Jack and Jill end up paying $72,571 and reducing their principal to $293.387.
The 1st remortgaging has monthly payments of $1,759, reduces the principal to $183,035. Four years of payments (totaling $84,432) whittle down the principal to $277,956. The 2nd remortgaging comes with monthly payments to $1492. It takes the principal to $0.00. 360 monthly payments add up to $535,680.
If Jack and Jill had not refinanced, their $303,000 home loan would have taken $723,709 to pay off. Refinancing it the way he did cost him $692,683.
On the good side, Jack and Jill reduced their payments by $524; the total amount they paid over the life of the loan by $31,025. On the bad side, they spent a lot more money than they had to, over $90,000 more by the time they were done making the last payment.
Remortgaging - 30 Years Total
Jake and Jill take out the first home mortgage loan for 30 years. They remortgage after 3 years but the loan is amortized over 27 years. They remortgage again after 4 years but the loan is amortized over 23 years.
The first loan has a monthly payment of $2,015.87 and in 3 years Jack and Jill end up paying $72,571 and reducing the principal to $293.387, just like in the first scenario (obviously).
The 1st time they remortgage, they reduce his payments to $1,831. And in 4 years they get the principal down to $274,168 by paying a total of $69,566.
The 2nd time they remortgaging, they reduce the principal to $0.00, like in the first scenario, but they have to pay only $460,230 to do so (the monthly payments are $1,674).
With this scenario, Jack and Jill own the house 7 years sooner, reduce their monthly payments by $342, BUT they save $90,315 over refinancing as in scenario number 1 and $121,341 vs not refinancing at all. (This way, they total amount they spent only $602,367).
The later in the life of a home loan you remortgage, the worse off you are if accept a 30-year loan again. The higher the interest rate, the worse off you are if accept a 30-year loan again. The larger the amount you borrow, the worse off you are if accept a 30-year loan again.
In conclusion, it's a good idea to remortgage (refinance). It's a bad idea to remortgage with 30-year terms if you can avoid it.
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