The best time for mortgage refinancing

If you don't want to take any risks, there are certain things you have to know before refinancing your mortgage

04:19 07 September 2013

Mortgage refinancing may seem easy to understand for many, but there are ways to make it worth in your favour, as well as ways for it to be disadvantageous. If you are nevertheless committed to mortgage refinance, you have to make sure that now is the right time to act. Here is what you need to know:

• if the mortgage refinance is to be profitable, you have to be able to save at least £ 64 each month;

 

• only commit to a mortgage refinance if you don't leave the respective house in the next 3 years, or else the whole deal will not be productive due to the fees and the prepaid interest;

 

• don't start a mortgage refinance before calculating your interest savings for the whole duration of your loan

 

• make sure that your mortgage refinance does not have a huge fee covered with attractive interest rates;

 

• search for other benefits from the mortgage refinance deal besides interest savings;

 

• Get professional help if you are not sure that you fully understand the terms of your mortgage refinance. You could ask a financial advisor to help you with this, and he may do it for free as most of them receive a commission from the bank directly for referring you to it;   

These are the most important aspects that help you determine whether this is the best time for you to start a mortgage refinance. Keep in mind that you should only do so if you have a good reason – you don't want to end up paying large up-front fees to reduce the interest for a home that you're going to leave from in a few years from now.