Website design By BotEap.comThe idea of ​​changing your mortgage loan may sound like a fantastic idea, but you have to be careful and remember that it is not as easy as it seems. You should always do your research and compare all the results your research produces. Changing a home loan is something many homeowners do on a regular basis. People do it for a variety of reasons; it could be consolidating all your debts so you can pay one creditor instead of many. Or you might even want to see if you can get a better rate from another institution.

Website design By BotEap.comAs with many other financial decisions you make, the key is to take your time. It is important to choose an option that is beneficial to you both in the long term and in the short term. It is as important as choosing the initial mortgage loan contract not to take it for granted.

Website design By BotEap.comThe most obvious thing that people often overlook is asking your current lender to negotiate the current rate before considering switching to another lender. This is a good idea because if you have a good track record, you will be in a good position to negotiate; the lender will most likely be willing to negotiate a different rate with you. This is good because you will be able to save on what are known as exit fees and any penalties that were in your original agreement. You can save quite a bit of money if you decide to do this.

Website design By BotEap.comIn the event that you decide it would be best to change your lender, your current lender will need to provide you with a letter of consent that will give you the go-ahead to change your mortgage loan. Without this letter, you will not be able to start the process of searching for a new loan because this letter contains all of your information and the outstanding amount of the existing loan and your payment history. Basically, it contains all the information a potential lender would need to know.

Website design By BotEap.comSwitching loans will cost you money. This is because lenders make their money from the interest they charge on loans. There’s a long list of fees you’ll need to pay when you want to switch your home loan to a different lender. These fees include: fees associated with the transfer, fees for the switch itself, exit fees, a penalty known as an early refund, legal fees, and required standard application fees. This long list of fees is why it’s recommended that you seriously consider renegotiating your current loan with your current lender, but this only applies if you’re looking at it from a short-term standpoint. However, under normal circumstances, over the long term, the total amount of fees you pay will be much less than the savings you realize at the end of the repayment period.