Thinking of Remortgaging?

Remortgaging is basically switching your already existing home loan to another building society or other lending institution; you don't have to be in the process of buying a new home. As well, Jamaican home and real estate owners, sometimes remortgage their properties for a larger amount, as an alternative source to obtaining a secured loan and/or in an effort to reduce those monthly payments, especially if you find yourself in a situation where it is becoming increasingly difficult to meet the monthly amount owing on the due date. Jamaican property owners remortgage because they find interest rates on a mortgage can often be lower than those on a secured loan.

Before diving in 'head first ', however, to find another lender, you should meet with your current mortgage company and discuss with them why you are actively considering another mortgage lender and, who knows, they may well come up with a better deal to keep your business, saving you a lot of time and energy. If your mortgage still has a way to go, find out if you can get a further advance from the same lending institution. If you can work a deal for lower interest rates at your current mortgage lender (or another), then you will be saving yourself a good amount of money every year. Using a Mortgage Broker If the value of your home has appreciated over the past few years, which is the norm especially if it is a well maintained property, you might be seriously thinking of remortgaging to get some much-needed cash for whatever reason. And, if you do decide on the remortgage strategy, it's often helpful finding a mortgage broker who should have the entire Jamaican market well within his sights. If you have a good deal with your existing lender, however,and that institution is providing good customer service and seems keen to keep your business, as mentioned already, check to see if you can simply increase the current loan in place and avoid the time, 'bureaucracy' and various fees involved in remortgaging. Ask your mortgage adviser/broker lots of questions as the broker you choose should be able to find the most reasonable rates and then you will be able to compare your lending institution's offer with his findings. Also, when you're comparing deals, you'll need to find out about and take into account valuation, conveyancing and solicitor's fees that may apply. Your broker must also be fully conversant with all and any penalty charges such as early redemption/early exit fees that may be applicable in remortgaging, thus enabling you to make an informed decision on whether to go ahead with another lender or stick with the one in place. But, at the end of the day, whether you decide on an increase in your loan or go for remortgaging, it's the same result: you will owe more money and be in more debt. It's worth remembering that interest rates can change and so can your circumstances, so the whole process and final decision needs careful thought and planning.