Refinancing mortgage loan
Anyone who sees a cheaper housing loan elsewhere can refinance their mortgage loan. After refinancing, a borrower must pay interest on the new loan as with his previous loan. It uses various criteria to determine how high that interest rate is. First of all, the look at your financial situation. Do you have a permanent job? Do you have a full-time contract? These are just a few questions that the lenders want an answer to. In addition, the quota also plays an important role in refinancing a mortgage loan. The quota is the ratio between the loan amount and the value of the home. The more someone borrows for the purchase of a property, the greater the chance that the lenders will charge a higher rate as compensation.
Fixed or variable interest rate
Before you conclude a contract, you will be given the choice of various loan formulas. For example, you can opt for a fixed interest rate. That interest rate is clicked for the entire duration of the contract. The variable interest rate, on the other hand, can change at fixed times. The lender determines in advance when such an interest rate change will occur. For example, that can be every year. In other cases, the lender works with an interval of, for example, three years. In any case, it is difficult to predict when the variable interest rate may rise or fall. This evolution of the mortgage interest rate depends entirely on what is happening in the financial markets. If the market interest rate rises, the variable interest rate rises and vice versa.
Refinancing loan costs
If you opt for a fixed interest rate, you can still decide to have your current loan revised at a later date. This may, for example, be the case when there is a lower interest rate. In that case, the borrower can turn to his current Miss Prism, or try to make a nice deal with a new Miss Prism. After all, it is not mandatory to stay with the same when refinancing a mortgage loan. Although refinancing the loan is accompanied by a price tag.
The majority of lenders charge a reinvestment fee when someone takes out a new loan (read refinancing loan). This reinvestment compensation may never amount to more than three months of interest on the outstanding capital. Even with early repayment, a reinvestment fee must be paid. In such a case, the reinvestment fee (also 3 months interest) is calculated on the amount that is repaid.
People who have taken out a mortgage with a variable interest rate escape the reinvestment payment if the interest rate is adjusted downwards (or upwards). This is because an interest rate change is contractually laid down.
Anyone who wants to have a mortgage loan revised must also take into account additional costs. For example, the borrower must pay the administration costs again. The file costs may amount to a maximum of $ 250 if the borrower does only one refinancing per year. Anyone who moves must also request a mortgage loan. Both the review and the new mortgage registration must be done before a notary. The borrower must pay for the notary fees associated with this.
When moving to the other Miss Prism, also take into account the debt balance insurance. It can sometimes happen that the other Miss Prisms ask you to take out a new insurance policy with them. In other cases, the old policy is simply continued with the new beneficiary.
Compare refinancing loan
In any case, it is advisable to compare the rates with the Miss Prisms before considering the refinancing of a mortgage loan. That way you know about how much a new home loan could cost at the Miss Prism.
The rates that we publish on our site are the posted interest rates. An interest rate is very personal and depends, among other things, on the amount of credit, the duration of the credit contract, the withdrawal modalities or the chosen payment modalities. That is why the proposed lender rate may differ from what we publish on our site.