Down sizing with a Reverse Mortgage - A Retirement Tool -Ask Yourself these

Considering a reverse mortgage? Here are some questions to ask your self first. It's quoted time and time again; over 95% of seniors want to live the duration of their retirement years in their own homes. Often consumers will start their research on programs, costs and numbers. I propose that if you are looking at using a reverse mortgage to improve and enhance your retirement lifestyle, you ask yourself a few questions before you consider reverse mortgage program numbers and costs.

Is this the house I plan on staying in for the rest of my life?

Is this a house that I can afford to stay in the rest of my life?

Will it need a new roof, painting or a new furnace? Do I have the funds for this or will it be a struggle?

Can I easily pay my property taxes?

Can I maintain my home myself or do I have the resources to have my home maintained for me? Handyman work, house cleaners, laundry and grocery shopping etc.

Or if I don't have the financial means to pay for these things when I either don't want to or can't do them, do I have reliable family or friends that are willing to help me as I age?

Do I have the emotional, physical & financial resources to stay in this particular house?

Are my bedrooms upstairs? If I am injured or have arthritic knees, will I be able to move about the house safely?

Do I have more house than I really want?

Would it make sense for me to down size?

Would it make sense for me to move closer to my son or daughter?

Would I be better off if I sold my home, added my profits to my retirement resources and buy a smaller home with a reverse mortgage?

By staying in this house will I able to maintain my independence and set myself up for healthy aging on all levels or should I consider downsizing?

Potential Downsizing examples for Mr. & Mrs. Anderson moving from a $700k valued home to a $430k valued home and Mr. & Mrs. Jones moving from a $420k valued home to a $300k valued home:

Mr. & Mrs. Anderson are both ages 68. The Andersons own a home valued at $700k and they owe $220k. After commissions, closing costs, mortgage payoff & moving etc. the Andersons retain an estimated $430,000 from their sale. Instead of paying cash for their new retirement home, the Andersons either:

A. Purchase a $430,000 home with a reverse mortgage put down a one time payment of $180,000 and have no house payments for the life of their loan. They also take the balance of $250,000 as principal residence tax exempted proceeds (Internal Revenue Code 121 principal residence sale tax exemption; consult your tax advisor).

Or

B. Purchase a $430, 000 with a reverse mortgage and set up a credit line that is liquid and tax free when accessed. The unused portion of the credit line grows at the same rate as the loan rate, this gives the Andersons approximately a $250,000 credit line and every year has access to more money
guaranteed.

Mr. & Mrs. Jones are both ages 68. The Jones’s own a home valued at $420k and they owe $40k. After commissions, closing costs, moving etc. the Andersons retain an estimated $350,600 from their sale, moving and mortgage payoff. Instead of paying cash for their new retirement home, the Jones’s either:

A. Purchase a $300,000 home with a reverse mortgage, put down a one time payment of $119,000 and take the balance of $231,600 as principal residence tax exempted proceeds (Internal Revenue Code 121 principal residence sale tax exemption; consult your tax advisor). The Jones’s will have no house payments, purchasing with a reverse mortgage.

Or

B. Purchase a $300,000 home with a reverse mortgage and set up a credit line of $181,000 that is liquid and tax free when accessed. The remaining balance of $50,600 is taken as principal residence tax exempted proceeds (Internal Revenue Code 121 principal residence sale tax exemption; consult your tax advisor). The unused portion of the credit line grows at the same rate as the loan rate; this gives the Joneses an approximate $181,000 credit line. This credit line grows at the same rate as their loan rate. Every year they will have access to more money guaranteed.

If you have a reverse mortgage questionFind Article, CALL Angella Conrard at 866-949-7030 or log onto www.pro-bargainhunter.com.

Reverse Mortgage for purchase - a new tool for retirement

Purchasing a home in your retirement years just became easier for seniors looking to move, downsize or upsize with no credit score requirements or house payments for the life of the loan. HR. 3221, signed into law last summer has a provision for using reverse mortgages for home purchase that is projected to take effect January 09'.

HUD just issued a mortgagee letter describing the guidelines on how to purchase a home with a government insured reverse mortgage. Various lenders offer variable and fixed rate HECM reverse mortgage programs. Your reverse mortgage advisor should discuss your goals and present the current program choices that are available to you.

How do your purchase with a reverse mortgage? How do they work? Homeowners or potential homeowners qualify for reverse mortgage proceeds based upon the youngest borrower’s age and the appraised value of the home. In a home purchase with a reverse mortgage it works the same.

For example: A 68 year old borrower can purchase a $400k home with a down payment of $155k-$206k depending on the program chosen (programs vary with current interest rates, indices, variable or fixed loan programs) and have NO PAYMENTS for the life of the loan.

This is a powerful cash flow tool for seniors. HUD has issued some guidelines in their mortgagee letter. Given our recent history these guidelines are in place to protect the borrowers, avoid fraud, abuses and property flipping.

Here are some of the guidelines:

• Newly constructed homes must be completed and a Certificate of Occupancy must be issued prior to closing.
• Homeowners must occupy their purchased home within 60 days of closing.
• Lenders must verify funds prior to closing, closing funds can be from the sale of a previous residence.
• There can be no bridge loans or "gap" financing to meet the down payment or cash requirements of a reverse mortgage for purchase.
• Reverse Mortgage counseling is required for all potential borrowers.
• There is no three day right of rescission period in a reverse mortgage for purchase transaction.
• When closing no other liens against the property can exist.

Any resale of a property may not occur 90 or fewer days from the last sale. Other provisions apply.

HUD decided to base reverse mortgage for purchase proceeds on the appraised value of the home. In the past, reverse mortgage programs that allowed home purchasing were based upon the lesser of appraised value or purchase price. With HUD's new HECM for purchase guidelines, a borrower can potentially put down fewer proceeds if their future home appraises for more than their purchase price.

Reverse mortgages for purchase is another tool for seniors to improve their retirement lifestyle by putting more money in their pocket each month by potentially downsizing, moving closer to kids & eliminating burdensome home maintenance. Just as a family can outgrow a home and need more space, in your retirement years it may make more sense to move to a lower maintenance, mature friendly home in size and floor plan. Reverse mortgages for purchase are an excellent idea and option for aging seniors and in the future boomers. If you have a reverse mortgage question, call Angella ConrardScience Articles, Reverse Mortgage Advisor at 866-949-7030 or log onto www.reverse-your-mortgage.com

Click Here to calculate how much home you can borrower with a reverse mortgage.

Advice on Your Adverse Credit Commercial Mortgage

If you are considering purchasing a new business or constructing a new building then a commercial mortgage quote is certainly at the top of the list of things to research. Below we take a closer look at commercial mortgages, examining what a commercial mortgage is, why you would want one and how you go about obtaining an adverse credit commercial mortgage.

Commercial Mortgage Basics.

A commercial mortgage is a specialist mortgage which is suitable for the finance of a variety of commercial undertakings including:

• Construction of a new building
• Purchase of new premises or land
• Modification or expansion of existing premises
• Debt consolidation

It is worth noting that commercial mortgages are specialized in that the lender has a legal claim over the property until the commercial mortgage loan has been repaid in full. If you fail to make your repayments the property can be repossessed and sold as a means of repaying the outstanding mortgage balance. There are a variety of commercial mortgages available on the market, ranging from a mortgage used with the specific aim of buying a new property or a mortgage taken out to finance commercial buy-to-let purposes. You will need to discuss your individual business need with your mortgage broker before applying for a commercial mortgage. The current range of commercial mortgages available means that there will almost definitely be a commercial mortgage quote available to suit your personal commercial needs.

Adverse Credit Commercial Mortgage Advice

Commercial mortgages lenders have proved to be popular over the last few years as they provide a flexible and practical solution to aiding the financial needs of a business. As with a domestic mortgage, commercial mortgages are an efficient way of borrowing money to finance your commercial needs and involve a repayment of the capital borrowed over a fixed period of time and to an agreed interest rate. If you are considering taking out a commercial mortgage quote it is important that you find the appropriate interest rate and fixed repayment schedule which best suit your needs. However, this may prove to be more difficult that anticipated if you are in an adverse credit situation. This is due to the fact that, as with any mortgage application, the commercial mortgage lender will take into account your previous credit history. This means that if you are in an adverse credit situation, such as having experience of county court judgments, mortgage arrears or defaults, you will need to take invaluable advice from a specialist adverse credit commercial mortgage broker. This type of commercial mortgage broker will have close contact with all the adverse credit commercial mortgage lenders and will know which lender will be most suited to your personal needs. If you are in an adverse credit situation and are currently applying for a commercial mortgage, the specialist commercial mortgage broker will aide you in considering the effects of the mortgage repayment on your cash flow and business assets. They will know a specific lender who will provide you with a mortgage repayment schedule which minimizes the strain on your cash flow according to the line of business you are in.

Unconventional Commercial Mortgage Lenders - Hedge Funds & Private Equity

Hedge funds and private equity firms are investment companies set up by Wall Street investment banks and funded by wealthy individuals and cash rich corporate entities. Unlike standard, publicly traded mutual funds, hedge funds are largely unregulated and have much more leeway in their investment choices. Many of these funds have recognized the opportunity that's emerged in commercial real estate lending, and have stepped in to fill the funding gap. The money managers in charge of these massive pools of capital are savvy investing pros, they know a good deal when they see it and can be very nimble. Hedge funds and private equity funds are not afraid of risk; in fact they thrive on it. If they like a deal, they make decisions quickly and can close loan or equity financing in just days.

There are many private funds that specialize in commercial real estate investing or have a commercial mortgage lender division. They are cash rich and actively seeking quality deals to fund. They can be an excellent alternative to banks and other traditional lenders. But, be aware, they are very professional and highly sophisticated. Do not approach hedge funds with shoddy or incomplete packages. They're pros and work exclusively with other pros.

Hedge fund and private equity people have a Wall Street mentality; they are traders art heart. When they look at a deal they want to be able to make decisions quickly.

When approaching a fund you'll want to have a complete, well documented package ready to show them at a moments notice, but don't give it to them all at once. Having worked for Wall Street firms for more than 20 years, I've determined that the best way to approach money mangers is with a concise, well written 1 page deal summary.

Sum-up the selling points of your deal on a single sheet of paper, stressing the profit potential, the investors level of experience, the strength of the location and some of the other strong points of the project. They'll appreciate the fact that you respected their time by being brief. If they like what they see they will ask for more. Give them precisely what they ask for; don't bog them down with documentation until they tell you they want to see it. Sell them the big story before you try to sell them the details.

If you want to secure funding from a big private equity shop or a hedge fund, I'd strongly suggest you utilize the services of a professional intermediary with Wall Street experience. They can speak the language of fund managers and know exactly what's important to highlight about a particular deal. These funds tend to operate like private clubs, it helps a-lot if you have an "in". If you are fortunate enough to develop a relationship with this unique type of lender, you will enjoy a seemingly endless source of capital.

How to Get a 100% Commercial Mortgage

Are you considering a permanent home for you business, but would prefer not to part with a significant chunk of your liquid assets to finance the move?

A 100% commercial mortgage may hold the answer. Unlike traditional mortgages and many standard business mortgages, a 100% commercial mortgage quote requires no down payment, so you don't have to pay out cash in a big chunk up front. This can be a major advantage if you're just getting a business off the ground, or if you simply need to keep your cash assets liquid.

How a 100% Commercial Mortgage Works

Like any other mortgage, whether it be residential or for business purposes, a 100% commercial mortgage loan. That means that you put up property or assets as a guarantee that you will repay the loan. If you miss payments or default on the loan, the lender has the right to take possession of your assets and liquidate them to get its money back.

In the case of a commercial mortgage, that security is generally the property for which the loan is sought. In addition, some banks may require additional collateral in the form of other property or assets before they'll approve your application.

If you are taking a 100% commercial mortgage to start a business, your bank or building company will nearly always require that you file a business plan which their lending officers will evaluate before deciding whether or not to lend you money.

Why Choose a 100% Commercial Mortgage?

The best reasons for choosing a 100% commercial mortgage quote, of course, arise from the fact that there is no need to put down an up-front payment on your property. There are many reasons why a business owner would decide to pay higher interest rates in return for a 100% finance deal.

-Your business may not have the capital to provide a down payment, but does have assets that can be provided as security. -When you take out a 100% commercial mortgage, your cash assets are available for other purposes to build your business. -Your cash assets can continue to accrue interest or be used for investment purposes rather than being spent. -You keep a portion of your assets liquid to meet unexpected expenses. -Interest payments on your mortgage can be offset against taxes.

With a 100% commercial mortgage quote, you generally trade a higher interest rate and higher monthly payments for the advantages of holding on to your cash assets longer.

What Are the Disadvantages of a 100% Commercial Mortgage?

The most obvious disadvantages of deciding to take a Commercial mortgage quote with no down payment required have to do with paying more interest on your commercial mortgage loan.

-Since you are not putting down a significant amount of the purchase price for your business property, you will be taking out a loan for more money. That means that you'll be paying interest on a larger sum. -Since you are borrowing more money, you will probably be making higher monthly payments to pay off your loan in the same amount of time. -Banks and finance companies often charge higher interest rates on 100% mortgages, since they are substantially riskier for the bank.

That means, of course, that you will have to bring in more per month in order to meet your Commercial mortgage quote before your business can show a profit.

Reverse Mortgage for purchase - a new tool for retirement

Purchasing a home in your retirement years just became easier for seniors looking to move, downsize or up size with no credit score
requirements or house payments for the life of the loan. HR. 3221, signed into law last summer has a provision for using reverse Commercial mortgages for home purchase that is projected to take effect January 09'.

HUD just issued a Commercial mortgage letter describing the guidelines on how to purchase a home with a government insured reverse Commercial mortgage. Various lenders offer variable and fixed rate HECM reverse mortgage programs. Your reverse Commercial mortgage advisor should discuss your goals and present the current program choices that are available to you.

How do your purchase with a reverse Commercial mortgage? How do they work? Homeowners or potential homeowners qualify for reverse mortgage proceeds based upon the youngest borrower’s age and the appraised value of the home. In a home purchase with a reverse Commercial mortgage it works the same.

For example: A 68 year old borrower can purchase a $400k home with a down payment of $155k-$206k depending on the program chosen (programs vary with current interest rates, indices, variable or fixed loan programs) and have NO PAYMENTS for the life of the loan.

This is a powerful cash flow tool for seniors. HUD has issued some guidelines in their Commercial mortgage letter. Given our recent history these guidelines are in place to protect the borrowers, avoid fraud, abuses and property flipping.

Here are some of the guidelines:

Newly constructed homes must be completed and a Certificate of Occupancy must be issued prior to closing.

Homeowners must occupy their purchased home within 60 days of closing.

Lenders must verify funds prior to closing, closing funds can be from the sale of a previous residence.

There can be no bridge loans or "gap" financing to meet the down payment or cash requirements of a reverse mortgage for purchase.

commercial Mortgage counseling is required for all potential borrowers.

There is no three day right of rescission period in a Commercial mortgage for purchase transaction.

When closing no other liens against the property can exist.

Any resale of a property may not occur 90 or fewer days from the last sale. Other provisions apply.

HUD decided to base reverse mortgage for purchase proceeds on the appraised value of the home. In the past, reverse mortgage programs that allowed home purchasing were based upon the lesser of appraised value or purchase price. With HUD's new HECM for purchase guidelines, a borrower can potentially put down fewer proceeds if their future home appraises for more than their purchase price.

Commercial mortgages for purchase is another tool for seniors to improve their retirement lifestyle by putting more money in their pocket each month by potentially downsizing, moving closer to kids & eliminating burdensome home maintenance. Just as a family can outgrow a home and need more space, in your retirement years it may make more sense to move to a lower maintenance, mature friendly home in size and floor plan. Commercial mortgages for purchase are an excellent idea and option for aging seniors and in the future boomer. If you have a reverse mortgage question, call Angella Conrard Article Submission, Commercial Mortgage Advisor at http://www.pro-bargainhunter.com

Click Here to calculate how much home you can borrower with a Commercial mortgage.

Mortgage Loans: Save Thousands With A Couple Of Bucks

By opting on slightly higher monthly payments you can pay off your mortgage sooner and save thousands on interests.

The terms of mortgage loans have to be decided carefully. Sometime people do not realize that by saving a couple of dollars a day and destining them to mortgage repayment they can save thousands of dollars over the whole life of the loan. With slightly higher monthly payments you can pay off your mortgage sooner and save thousands on interests.

Shorter Repayment Programs

By requesting a shorter repayment program, you will definitely get a slightly higher monthly payment, but that increment can be as little as $30 to $60 which implies $1 or $2 a day. It is not such a big sacrifice and you will be paying off your debt sooner. Besides, a year less of mortgage payment is a year less of interests because interest rate is calculated annually.

Moreover, a shorter repayment program has an additional implication: Since the money owed will be repaid sooner, the lender is taking a lower risk by lending the money and thus, the interest rate charged will also be lower. So, you will not only be saving money due to shortening the repayment program and thus the interests, but the interest rate will also be lower making you save thousands of dollars with each quarter of a point of interest.

Lower Interest Rates

Depending on the loan length, the loan will carry a higher rate or not (The longer the repayment program, the higher the risk and thus the higher the interest). However, the rate will also depend on whether you choose a fixed or variable rate and whether you have a good credit score or not.

Nevertheless, you should always know that you can save money by shortening the repayment program or by prepaying the mortgage loan provided there are not penalty clauses in the loan contract that increase the cost of the loan if you decide to prepay. If so, you should check to see if you are really saving money by prepaying.

Refinancing Your Home Loan

All the above is important if you are planning to take a home loan. If that’s the case, you need to make sure that you are not overpaying a huge amount just to get a lower monthly payment that will save you only $30 or $60 a month. A little sacrifice every month can save you a lot of money on the long run (money you can invest to generate additional income).

However, if you already have a mortgage loan and you are ruing because you closed on a deal that is definitely not to your advantage, you do not need to worry as you can always refinance your home loan so as to get better loan conditions and seize the benefits that are explained above.

Refinancing is a simple process: you take a loan that is secured on the same property as your previous mortgage on condition to repay the previous loan so the new one remains the only loan for which the property acts as collateral. You just need to make sure that by doing soBusiness Management Articles, you are actually saving money because the costs of refinancing may be higher than what you save by getting better terms.

Home Equity Mortgage - 4 Tips That You Should Follow Closely

When considering a home equity mortgage, finding the perfect time to borrow is critically important. Here are some guidelines to help you decide when to take out a loan.

A home equity mortgage in today's marketplace is more difficult to locate, but still not impossible. Determining when the right time to make such an effort is more complicated. The number of reasons for obtaining such a mortgage is as varied as the people who are looking for mortgages. Although hindsight is always better than foresight, picking the right time to take advantage of the equity in your home by taking out a mortgage is more likely when you understand the factors of the loans and determine whether or not you should take out the loan.

When Rates are Low
When you are looking for the perfect time to obtain a home equity mortgage, it seems like a logical assumption to pick a time for acquiring the mortgage when the rates are at their lowest. Obviously, you are never going to be certain the rate is as low as it will ever be. However, if the rates are not much higher than the best credit loans, it may be a good time to apply for your new equity loan. When rates are low overall, you will certainly pay less than if you were to acquire the same loan when interest rates are higher.

When Housing Prices Dip
Looking for a home equity mortgage when the prices on houses dip is another way to save money on your mortgage. Of course, it is impossible to know when the prices are at their lowest point, but if you are watching the housing market, you will get a feel for small movements in the market. You can take advantage of these dips in order to save a little money on the price of your mortgage. Sometimes there is a steady movement in one direction or the other with housing prices. You will still be able to pick up a better price by watching for the small dips in the market.

When You Outgrow Your Present Home
Getting a home equity mortgage when you are in the situation where you have outgrown your present home makes a lot of sense. The right time to get a new mortgage in this instance is to do so when you are ready to make the move to larger quarters. You may also choose to improve the value of your existing property by renovating the home and replacing dated features. This type of mortgage provides you with the cash value of the equity of your home. Even if the space is just barely adequate, you can always find a balance amount.

When you Move
Finally, a home equity mortgage may be a good idea when you move. Finding a home that has a large amount of equity means you don't have to go to an outside loan for the cash you need. Instead, you take out cash from the equity of your home. The money can be used to get housing improvements made Feature Articles, to add additional living space or to purchase furnishings that are known for credit cleansing.

Are Mortgage Acceleration Software Programs the Fastest Way to Pay Off a 30 Year Mortgage?

In these economic times, a suitable strategy designed to pay off our mortgage and other debt may be the best use of our personal financial resources. The benefits of utilizing a modern mortgage acceleration software program can be significantly reduced payoff time and tremendous savings in interest expense.

In today's financial environment, we can't rely on the appreciation of our assets to improve our future financial position. With consumer and personal debt nearing ten trillion dollars, home values and equity declining, and personal investments gone south, consumers are concerned and are looking for solutions.

There are many debt management programs on the market designed to help us improve our future financial security. A suitable strategy designed to pay off our mortgage and other debt may be the best use of our personal financial resources.

Traditionally, financial advisor's have made their living on the left side of the balance sheet and have provided little guidance in terms of effective debt management.

There has been an increasing interest in acceleration planning. An acceleration plan is a set of generic instructions or a "road map" to accelerating the payoff of mortgage debt. This would include the bi-weekly payment plans, the progressive payment plans, and "snowball" or "roll-down" type plans. While these plans can be effective, they have never gained popularity as an alternative to conventional mortgage amortization.

New and more advanced innovations in mortgage acceleration programming have come onto the scene. Mortgage acceleration analysis software periodically receives financial information from the owner and develops a customized strategy to pay off the mortgage and consumer debt.

If an acceleration plan is like a road map, mortgage acceleration analysis software is like a GPS navigation system because it utilizes continuous financial data to determine where we are at any point in time and makes strategic adjustments to keep us on course.

The advantages of a mortgage acceleration software program are: - Speed and efficiency in eliminating debt. - It adapts well to changing personal financial circumstances. - It provides real time reporting of our financial progress, giving us daily motivation to stay on track. - It has the ability to eliminate other debt and harness those vanishing monthly payments to step up the attack against mortgage debt.

Because of these advantages, mortgage acceleration software programs can be the fastest way to pay off a 30 year mortgage without necessitating lifestyle changes.

The benefits of using any mortgage acceleration strategy will depend on the owner having some positive cash flow. If your family, on average, makes more money than you spend, you can benefit from the use of these programs.

Those that are within the first few years of a 30 year mortgage will realize the most benefit because of the proportionately high interest payments during this period.

One of the most controversial but successful innovations in the field of mortgage acceleration is found in the "merged account" programs. This involves the combining of cash accounts with certain types of credit accounts for purposes of utilizing temporary and surplus cash flow to reduce interest costs associated with debt.

The original program was developed in Australia and calls for the combining of your checking account with a type of transactional mortgage account so that the short term liquidity of the checking account can reduce the balance on the mortgage and the interest charges accordingly.

Although this is an innovative and effective strategy, the disadvantages are that one must refinance into this type of mortgage, it has an adjustable rate structure, and it is not readily available in many states.

Another variation of this program utilizes an advanced line of credit which merges with the checking account. Specific amounts of debt are transferred from the primary mortgage into this transactional line of credit where the owner's cash flow can affect the balance and reduce the interest charges.

The owner's unspent or surplus income further reduces the balance over time, allowing the line of credit to absorb additional amounts of the mortgage debt until both accounts are at a zero balance.

The advantage of this variation is that the owner keeps their existing fixed rate mortgage, avoiding the refinance costs, and it is even faster and more efficient than the original Australian program.

These programs are not inexpensive due to the complexity of their programming.

These programs are fueled by short term and future liquidity. Because this is a moving target, the company can only provide very conservative payoff and savings projections. This shortcoming has led to some debate as to whether the program investment is justified.

Mortgage acceleration isn't the solution for everyone, but for many Feature Articles, it can pay off the mortgage and other debt in record time and is a safe strategy to build your financial future.

Re-mortgaging – finance for projects.

As a means of raising funds for a variety of purposes, re-mortgages are attracting increasing interest and already form a significant percentage of total mortgage business.

A mortgage, especially a first one, can be something of a burden. The need to raise the funds every month to pay the due installment can loom very large in financial thinking. So why even consider re-mortgaging? There can be one or more of several reasons which all emanate from two basics.

The first basic reason is simply to get away from an existing mortgage which carries a rate of payment which can be improved upon. There is no intention or need to increase the level of debt; the idea is simply to move to a more competitive mortgage to reduce the level of repayments. If this is your intention you need to check what you would be paying by way of early repayment charges or exit fees.

At an early stage you should involve your current lender as you may find that they can move you to a better rate, and if you remain with them they may waive any charges for early closure of your current agreement. Ask for a redemption statement, which will tell you exactly what you have to pay if you do move to a new lender.

However, whilst looking at offers from other lenders, be sure to check out which if any of your costs they are prepared to cover. You will face legal costs, very likely a charge for a valuation or an arrangement fee – you may get a deal in which your new lender will pay at least some of these.

All costs and offers need to be examined carefully, to decide exactly how good any new deal will be.

The second basic reason for a re-mortgage is to raise cash from the equity in your property for whatever purpose may be required, and these can be many and varied! Getting cash into the bank to pay for a car or a holiday is not likely to be the main requirement; more likely is the need to pay off an expensive loan by debt consolidation funded from a (relatively) cheap mortgage.

Possibly, if you have no need and no wish to move house, you may want to use the money to improve and extend your present home, or possibly you will use the cash to finance new property for investment purposes or carry out repairs or modifications to an existing property which you rent out.

Which ever is the option you are looking at, you need to be fully aware that failing on payments could put your house at risk of re-possession, and it is important that you take out insurance to cover you for loss of employment or accident. Either of these occurrences could give you some serious financial problems if you do not have the cover. The costs of the insurance also need to be brought into the equation when you are deciding what move to make.

Flexible mortgages are worth examination, especially if your income is subject to the vagaries of self-employment etc. These allow you to adjust up or down the amount paid according to your circumstances at the time; there will be defined limits, so obviously you will not need to waste time looking for one which allows for nil payments! With this type of mortgage, juggling payments to cut the balance (and therefore interest owing) whilst leaving other payments until due can be a worthwhile exercise.

You could be facing quite a hunt if you are to establish beyond doubt the best deal for your needs; why not enter ‘re-mortgage’ in your internet search engine and let your computer take a lot of the strain? You will acquire a lot of information as re-mortgaging is an important source of business to lenders and to brokers, forming as it does around 1/3rd of the total mortgage demand. A recent report from The Council of Mortgage Lenders quoted re-mortgage figures of almost 100,000 for one month.

Although there is an undercurrent towards increased interest rates which could reduce the level of re-mortgages, the market is not reacting with any great concern. Interest rate stability seems to be reasonably assured and there is such a diversity of factors leading people into re-mortgaging that lenders believe that it would take a major upheaval in interest rates to have a significant effect.

Re-mortgaging it would seem is here to stay for the foreseeable future.