Real Estate Market

Remortgaging your home can be a great way an excellent way to release some extra equity from your property to enjoy the funding for many purposes. Remortgaging a house is a popular choice for many people looking for immediate extra cash.

Maybe you have plans to renovate your house from top to bottom to improve the appearance, comfort, or to increase the resale value? You may want to remortgage your home to:

• make a significant investment
• make a large purchase
• pay for your children’s education
• consolidate debt that is at interest rate

The option of additional funding from a remortgage allows you and your family to continue to enjoy the comfort and security of your home and have access to funds when you need it.

The remortgage option allows people to easily obtain additional funds by simply adding the amount to an existing mortgage, based on the appraised value of your home at that time.

Here is an example of how additional remortgage funding option on conventional mortgages. (Insurance premium may apply).

Let’s say the current value of your property is: $ 130 000

80% of the appraised value of your property would be: $ 104 000

And that the current balance of your mortgage with your current mortgage lender, which matures in 3 years is: $ 40 000

In this case, you could borrow up to: $ 64 000

If you borrow the additional $ 64 000 with optional additional funds, your current mortgage rate is combined with the current rates for mortgages of 3 years and your monthly payments would be adjusted for new amounts of principal and interest.

You can normally ask to be added to the original amount of your mortgage, for a nominal fee by your mortgage lender. Your mortgage specialist will be happy to explain everything in detail.

There are lenders whose mortgage products have features which automatically help you to avoid legal fees that usually accompany an increase in the amount of the mortgage.

Provided that the balance of your mortgage will never exceed the original amount of the mortgage, you can take advantage of an embedded option to add additional funds to your balance as often as you like.

Check with your lender to find out what exact options are available. Better still, ask a mortgage advisor to advise you of the various re-mortgaging options available if you decide to switch lenders and if there are any mortgage penalties to switch mortgages