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.