Get our 43-Page Guide to Real Estate Investing Today!
Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.
|REASON FOR REFINANCING||HOW IT WORKS|
|Take advantage of lower interest rates||If market rates drop below the rate on your current mortgage deal, remortgaging can help you take advantage of them. Keep in mind that your ability to get a better interest rate depends on your credit score, too.|
|Get a lower monthly payment||Remortgaging into a loan with a lower rate can give you a smaller monthly payment, too. You can also reduce your monthly payment by getting a remortgage with a longer loan term. (For example, choosing a 30-year remortgage loan would allow you to spread your remaining mortgage balance over 30 years, thus lowering your payments considerably.)|
|Pay off your loan faster||You can also remortgage to change your mortgage repayment schedule. If you remortgage and choose a shorter mortgage term (a 10-year loan, for example), this would allow you to pay off your balance faster and get out of debt sooner. Remember that loans with shorter terms have higher payments.|
|Access extra cash||You can also choose to remortgage into a higher-balance loan. You then get the difference between your new balance and the old one in cash. This is called a cash-out remortgage or a cash-out refinance. Learn more about this strategy below.|
|Debt consolidation||Since mortgages tend to have lower interest rates than other types of debt, you might want to use a cash-out remortgage to pay those higher-interest debts off. This basically rolls those balances into your mortgage loan and helps you pay them off more affordably.|
Got $1,000? The 10 Top Investments We’d Make Right Now
Our team of analysts agrees. These 10 real estate plays are the best ways to invest in real estate right now. By signing up to be a member of Real Estate Winners, you’ll get access to our 10 best ideas and new investment ideas every month. Find out how you can get started with Real Estate Winners by clicking here.