A short-term loan could be cheaper than remortgaging - What Mortgage

A short-term loan could be cheaper than remortgaging – What Mortgage

A British website for mortgage information has a story about people remortgaging their homes. The report states homeowners are doing this for a variety of reasons, such as home improvements or getting rid of credit card debt. Others are paying off college loans. The piece states that remortgaging can actually be more expensive than getting a short term loan. Remortgaging may cost more money in the long run. The piece cites an expert, who cautions homeowners to see if they can make the monthly payments before remortgaging.

Key Takeaways:

Refinancing your home extends your mortgage thus making it a costly choice.
Releasing equity is one way to fund home improvements or other expenses.
A short term loan may be cheaper in the long run. look into all your option before jumping to a conclusion.

“Despite two-thirds of homeowners seeing equity release as a cheap way to borrow money, it could actually cost homeowners more in interest than taking out a shorter loan.”