As you come to the end of a mortgage contract, what do you normally do? Do you know it's to your benefit, being a homeowner, to review that contract and think about switching over to some other type of mortgage loan to get lower costs?
Here are some things you should think about when you're at the end of a mortgage contract:
If you are a homeowner and have just become complacent about your contract, and not reviewing it around renewal time, you are passing up a good opportunity to get yourself better rates. Remember that trends in real estate change now and then and flow with the market, so you actually can shop got get better rates and switch over from on type of mortgage to another.
Another great benefit you get from switching mortgage types is being able to reduce the loan term. Your ultimate goal is gaining flexibility from this switch, so it does pay you to check out all the pros and cons that come with each type before your decide on a selection.
Here are some Mortgage Loan Types You Can Switch Over To:
Tracker Mortgage - Whenever a variable-Interest loan depends on market trends, any tracker mortgages will be dependent upon a factor known as a 'benchmark' rate.
Fixed Mortgage Loan - If you are currently working with a variable-interest loan, you might want to think about switching to a fixed loan. When doing this your interest rate is going to stay the same for the previously agreed on time period, which will usually be from 1 to 5 years.
Discounted Mortgage Loan - Just like the name implies, this type of mortgage loan comes with a discount rate. Competition is fierce among lenders, and enables you to make comparisons of what kind of rates are being offered between mortgage companies. It really pays you to do the necessary homework.
Variable-Interest Type Mortgage Loan - This is just the opposite of your fixed mortgage loan. It has a rate that is variable, or can fluctuate. If you're thinking of switching to this type of loan, remember your percentage is going to depend on the current market trends.
It's very important to give careful consideration to all the ups and downs of your mortgage loan and the one to switch to. This way you'll have a good idea of what advantages you can gain. You can talk with your present lender about what kind of offers you can get for a better deal. This is especially true if you've stuck with your mortgage loan without any delays over the years.
Review payments you've made in the past, your interest rates along with your remaining balance on your current mortgage. Then look at how many years you have left for the term of your loan, and the total cost to pay if off in full.