You may have already heard of a loan refinancing. That is a handy way to get a better interest rate than that of your current mortgage loan. You can read more about the pros and cons in this blog.
What is a mortgage transfer?
The interest rates can fluctuate considerably during the term of your mortgage. For example, it is quite possible that the current interest rates are lower than the interest rate of your mortgage loan. Certainly if your mortgage loan is ‘old’ for a few years.
That is why today it may pay to switch to another lender. That process has different names. This is generally referred to as refinancing, refinancing or revising a loan.
What are the benefits of refinancing a mortgage?
The main reason for refinancing your loan is of course to obtain a lower interest rate. This way you spend less of your valuable money on interest at the end of the ride . But it doesn’t stop there.
You can also extend the duration of your loan, so that your monthly installment decreases. So you get more financial breathing room every month. Moreover, you also have the option of combining the various loans that you have in place into a single loan.
Are there any disadvantages?
There are various costs involved in rescheduling a loan. Consider, for example, the reinvestment payment or the ‘fine’ that you have to pay for breaking the original loan. You also have to pay the costs for canceling the old loan and establishing the new mortgage.
When does it pay to refinance a loan?
In fact, there is only one rule when transferring a mortgage: see that the interest you save outweighs the costs that you will meet. The difference between the current and the new loan must therefore be considerable. Only then does it pay to refinance a loan.
Find a better interest rate together
Do you want to look for a better interest rate than that of your current mortgage loan? We work together with the most current banks. That is why we have an overview of all loans that best suit your specific situation.
In a conversation from person to person we would like to discuss your financial situation, your current mortgage loan and the possibilities that present themselves. Of course, that conversation is completely free and without obligation.