A lot of Mortgage owners are refinancing in Poland, is it just a trick or a treat?
When mortgage interest rates are low, you hear a lot about homeowners refinancing. Mortgage lenders advertise their great rates and borrowers are in a frenzy to get it done. So, what is refinancing? Let’s walk through the process together.
What is Refinancing?
First off, let’s define refinancing. Refinancing means moving your loan to get a lower low interest rate and reduce your monthly cost and overall mortgage bill. However you can also increase your mortgage, and use the loan proceeds to purchase anything you want. There are several reasons to refinish your existing mortgage and lower your monthly payments.
How to Refinance
You typically can’t get a better rate by refinancing your current mortgage than you can with a new mortgage that doesn’t have the same terms or repayment terms. The key is to shop for a new mortgage with the best terms and repayments possible. You can do this in a couple of ways:
- You can go Bank to Bank and ask what they can offer you, whilst this option gives you a very good understanding of Mortgages, you might not know the tricks to get a better rate.
- You can hire a professional Mortgage broker like Hypomo to find the best rate and get you the best deal on the Market, all for free. Hypomo has globally had success lowering rates to as low as 2%.
If you plan to go it alone, for your existing mortgage, ask a lender to evaluate your current mortgage and see if they can extend your payment terms or lower your interest rate. This can be done through a refinance or extending the term of your existing mortgage. So going to your current Bank might be the first port of call, but quite often, the rate will not be competitive.
Why Refinance?
The basic reason to refinance is to lower your monthly payments. Low interest rates make monthly payments lower than you might imagine, but they can be lower still with a refinance. You may be able to save thousands of dollars a year on your mortgage costs simply by switching your loan to a new lender and taking advantage of their lower rate.
Benefits of refinancing
Consider these benefits of refinancing your home mortgage.
Fixed or guaranteed rate. When you refinance, you lock in a certain rate for the next few years. Many refinancing lenders offer a fixed or guaranteed rate. It’s based on the current market rate and your credit rating.
Risk of refinancing
When you make an application for refinancing, you are required to present certain supporting documents. These documents include:
Proof of income
Paystubs and bank statements
Budget information
Recent tax returns
Property history and appraisal reports
All of these documentation are used to verify that you qualify for refinancing and they serve to protect you in case the lender discovers any information that casts doubt on your ability to pay the new mortgage. Mortgage lenders must disclose information about borrowers and loan information on their website in order to prevent data fraud and identity theft.
Get started today: https://www.hypomo.pl/en-pl/refinance
