Mortgage transfer
You hear it come along regularly; people who are refinancing their mortgages. But what exactly is that? And when does it make sense?
In short, to refinance means to replace your current mortgage with a new one. This can be with your current bank, or with another lender. The reason? For example, in some cases you can take advantage of lower interest rates or better terms.
Whether it makes sense to transfer your mortgage varies by situation. Here it is important to consider the interest rate in the current contract, the term of the mortgage and the current market interest rate.
In a nutshell, we could say that refinancing makes sense if it saves you money at the bottom line. To get a good picture, we include cost in the consideration. That way we can give you specific advice on a payback period.
There are several aspects that make refinancing interesting or not; we will take into account the following costs:
– (possible) valuation costs
– Penalty interest for early termination of the interest rate contract with the current bank
– Notary fees
– Consultancy fees
Refinancing your mortgage is not a simple decision. We look at the potential savings, the investment and the payback period. Do you have questions about refinancing your mortgage? Our advisors are ready to help you.
