I want to remortgage as our current one is rubbish and costs a fortune each month but my husband thinks it will count against us on a credit score if we want to sell this year to get something bigger.
Is he right, or are we okay to remortgage now?
2007-04-16 03:52:32 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If you're going to sell this year, how can you possibly justify the closing costs it would take to refinance? That alone can cost thousands. It usually takes about 2 years to recoup your refinancing costs. You don't have that kind of time.
Is there really a possibility that refinancing can actually save you money? I doubt it. Check that thoroughly before you proceed.
2007-04-16 03:57:44 · answer #1 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
It really depends on how much it will cost you to refinance the home. If you chew up $8,000 to $10,000 in equity to cover your closing costs, and you only stay in the house for a few months, you have spent a lot more money than you might save. If you think you will be in the house long enough to cover the closing costs and see a tangible benifit from the refinance then go for it. By seeing a tangible benifit, you would probably need to stay in the home for a couple of years at least. The only other vairable is the type of mortgage you have now. Is it fixed or adjustable? If the rate is fixed, than just sit tight, and list the home. If you have an adjustable rate that may be a compensating factor. It may take you a while to sell the home once you list it, and if your rate is just going to keep adjusting, then it might make sense for you to do a rate and term re-fi. Just make sure you do the re-fi before you list the home for sale.
2007-04-16 04:03:34 · answer #2 · answered by novastarbanker 3 · 0⤊ 0⤋
Unless you can get a mortgage without any closing costs or fees, you would do better to stick with what you have if you're planning on selling. You have to add up all the fees involved and for it to be cost effective you will have to end up with a drastic reduction in your monthly payment to offset the cost of refinancing. It won't hurt your credit score but it will hurt your pocketbook if you refinance and then turn around and sell.
2007-04-16 04:04:40 · answer #3 · answered by whalenfree 3 · 0⤊ 0⤋
it won't really count against you, yes - a credit check will be done, however you will be replacing like for like.
whatever you do - please check the terms and conditions of your current mortgage, there might be fees to pay. Also, i wouldn't remortgage now if you are planning to move later this year. i think you should wait for now or move now.
contact a independent financial advisor - they should be able to help you more
2007-04-16 05:17:39 · answer #4 · answered by homemanager22 6 · 0⤊ 0⤋
It costs a few thousand pounds to exit one mortgage and start another. If you are planning on moving in a few months, it will definitely be a better idea to stay with your current provider and change when you move.
2007-04-16 04:01:14 · answer #5 · answered by Marky 6 · 0⤊ 0⤋
If you are planning to sell your property in not so distant future, sticking with the current mortgage provider is advisable!
2007-04-16 03:56:48 · answer #6 · answered by Sami V 7 · 0⤊ 0⤋