Is your current mortgage plan as competitive as the new deals on the market today? Finding out the simple answer to this question can help you save hundreds or thousands of dollars. It is, therefore, a good idea to always review your mortgage plan.
Here’s what City Creek Mortgage has to say about this:
How often should you review your mortgage?
You should always be on the outlook for better mortgage deals. This is because new deals keep coming up on the market. If you are not tied by a discount rate agreement or a fixed mortgage, then it could be worthwhile remortgaging. You should always review your mortgage when the interest rate changes, when your ongoing deal ends, or yearly if you are not tied to any deal with early repayment penalties.
While you can save a significant amount of money by switching mortgages, bear in mind that remortgaging comes with its own costs. These costs include:
a) Mortgage valuation and legal fees charged by your new lender. Always ask about the fees when comparing products.
b) Exit fee paid when leaving your current lender
c) Booking fees paid to book the new deal. Here, you can also go for a fee-free deal and not pay the mentioned amount. However, you might be forced to pay a higher interest rate as a result.
d) Early repayment charges by your current lender. This might turn out to be high in case you opt out before the agreed upon period of your mortgage expires.
While mortgage switching used to be easy in the past, there have been continuous developments on the market, making it more complicated to switch. For instance, if you wanted to switch your mortgage in Salt Lake City, you will need to provide pay slips, bank statements, and duly completed tax returns if you are self-employed. To ensure you succeed in the switch, always seek professional advice from mortgage specialist.