How to Do a Smart Remortgage Comparison

In order to do a smart remortgage comparison, there are a number of factors that you need to consider. Choosing the right remortgage product is imperative to your financial success. If you choose the wrong mortgage product it could strap you financially for years to come. Therefore, you will want to make sure that you do everything in your power to choose the right mortgage. 

Compare Apples to Apples

When you are looking at one remortgage against another, you will want to make sure that you are comparing apples to apples. If you are comparing one type of loan to a completely different type of loan, you will not be able to make an accurate assessment of which one is better. For example, be sure you compare an ARM rate to another ARM rate- not a fixed rate. Or, be certain to take a look at the amortization term and compare a 30 year mortgage to another 30 year loan- not a 15 or 20 year loan.

Compare Closing Costs

When you are looking at two different loans, they may have identical rates and terms. However, one might have much higher closing costs than the other. Closing costs can add quite a bit to the cost of a loan overall. Even if the two loans might appear similar, the closing costs could make one loan cost quite a bit more than the other. Take a look at the APR and use that as your indicator.