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Remortgages are a great thing to apply for; but before you do, make sure to figure out whether or not you really need a remortgage. A new mortgage could be your downfall or it could open up new doors for you and your family. Do not go ahead of yourself by filling out applications as soon as you see lower interest rates. Read the following paragraphs before you decide.

- What are your reasons for needing a remortgage? Is it because you want to cash out and pay off some credit card debts or have your home remodeled? Can you not afford the huge installments that accrue every month? Is the present rate lower than that of your existing loan? If you already have a stable loan and just want to cash out, maybe you should reconsider the benefits of having some extra money left over after paying your mortgage until you reach your retirement years.

- Do you have plans on staying at your home for a long time, or are you planning to move within the next few years? If there are no future plans of moving to another state, then refinancing could be a good idea about now, especially if you are being offered a lower interest rate. However, if for some reason, you have to move a lot, a remortgage will not be a good idea.

- Do you think you will refinance within the next few years? If you have refinanced your home more than twice since you availed of it, you might want to stop now before you become dependant on loans. A remortgage is, at best, a partial solution to your debt troubles. Also, consider the fact that mortgage interest rates are not static, a good deal this year could be the worst one the following year. So do not hurry in to closing a deal. Sometimes it is better to wait awhile.

- Do you have steady employment? If you've been moving from one job to the next in the last couple of months, you might want to take a deep breath first. New mortgage loans can be fairly expensive. So go in for a certain deal only if you have the money.

- What are the interest rates? (Your current rate as well as the prevailing rate) What are the terms of the loans you have and the one you would like to get? It makes sense to move on to a new mortgage plan only if the savings are going to be adequate. If the new term is 30 years, while your current one is only 15 years -- you will end up paying more. Make sure you look at the bigger picture. Find out what the long term advantages will be.

- What is amount of equity you already have built up? Home equity tends to cause a lot of confusion in the minds of potential remortgage seekers. Equity is the actually the difference of how much your house is worth now and how much you still owe on your mortgage.

Do not plunge into the unknown just because everybody else is doing it. Give some serious thought to the whole affair. After all, one can never guess what tomorrow has in store for us.