Categories

Choose Language

Translate to Spanish Translate to Portuguese Translate to French Translate to Russian Translate to Italian

What to Consider Before Remortgaging Your Property

With mortgage rates over 4% above the national average, many Miami property owners are looking for ways to lower their costs. Miami real estate is highly sought after, meaning there could be savings to be made on remortgaging. However, this step isn’t right for everyone. There are a few things you should consider before taking the plunge and remortgaging your home. Here’s how you can be sure you are making an intelligent property investment.

Be Prepared to Switch Provider

It seems intuitively true that mortgage providers would want to reward their loyal customers. Unfortunately, this is rarely the case. One in five borrowers regret their choice of lender, so don’t feel bad if you spot a good deal elsewhere. It’s almost always worth it to search for different types and providers of property refinancing. If you’re an older property owner, follow the millennial trend of scouring the internet for the best rates.

Has Your Property’s Value Increased?

Miami’s properties increased 5.6% in value last year, meaning that this is a fantastic market for real estate investors. The lower loan-to-value mortgage you require, the more deals you’ll have access to. So if your property has increased in value substantially, remortgaging could save you money. If there has been little increase in value, you may be better off staying put. Ensure you have at least three valuations done so that you can be accurate of how much your property is worth. You can then consider remortgaging if it’s clear you will get a better overall rate.

Flexibility is as Important as Affordability

There are new types of mortgage popping up all the time, meaning there might be options now that didn’t exist when you last took out a property loan. For instance, perhaps your current lender only allows you to pay back a certain amount each month and you want to overpay. By remortgaging, you may be able to find a more flexible mortgage provider, allowing you to pay it back more quickly. Even if a loan looks more expensive on paper, its flexibility may mean it is cheaper in the long run.

Remortgaging can be a lengthy and complicated process, which is why many property owners stick with their current provider. However, if your property has increased in value, then there may be plenty of better offers out there. Do you research thoroughly and you may just find a way to cut costs and boost investment profits.

 

Previous post:
Investing in a Condo vs. House: The Pros and the Cons
Next post:
Wait! Read This Before You Buy A Condo
About the Author

Kaya Wittenburg

Blog Author and CEO

Kaya Wittenburg is the Founder and CEO of Sky Five Properties. Since the age of 10, real estate has been deeply ingrained into his thoughts. With world-class negotiation and deal-making skills, he brings a highly impactful presence into every transaction that he touches.

He is here to help you use real estate as a vehicle to develop your own personal empire and feel deeply satisfied along the way. If you have an interest in buying, selling or renting property in South Florida, contact Kaya today.

   
Feel free to call me at: (305) 357-0635
or contact via email: info@skyfiveproperties.com