Remortgage is a sub type of mortgage. In simple term Remortgage means revolutionize mortgage with a different mortgagee or lender, in order to lower the amount buyer or mortgagor paying on mortgage.
Remortgage is popular as refinancing. It is all about saving money. It’s a process of paying off one mortgage with the returns from a new mortgage using the same property as security. The prime objective of Remortgage is to secure a more flattering interest rate from a changed lender.
The process of remortgaging does not usually involve moving home or taking out a second mortgage on the property; it is in effect the transfer of a mortgage from one lender to another. It’s a process that replaces an existing mortgage loan with a new loan from a different lender. The new lender repays the existing mortgage debt to the original loan provider.
Benefits of Remortgage
Here the some benefits of choosing Remortgage are –
* Reduce the size of repayments
* Pay off a mortgage earlier
* Raise capital
* To consolidate other debts
* Lower interest rate
* Saving money
Mortgage is one more type of Loan. In simple term when buyer takes the loan from lender against his/her property, it’s called mortgage. Mortgage is well known as the transfer of an interest in property by owner to a lender as a security for a debt.
Mortgage is a security for the loan that the lender makes to the borrower for a precise period of time.
Parties in Mortgage:
In Mortgage two parties are found.
Also known as mortgagor is the party which takes loan is called buyer.
Also knonwn as mortgagee is the party which gives the loan is called lender.
Types of Mortgage:
Normally there are three type of mortgages are stands –
It is the most common type of the Mortgage. In few areas, a mortgage creates a lien on the title to the mortgaged property. Foreclosure of that lien almost always requires a judicial proceeding declaring the debt to be due and in default and ordering a sale of the property to pay the debt.
* Deed of trust
In this kind of mortgage a third party is involved in the instrument called trustee. In here trustee takes the right of foreclosed the property if buyer unable to pay the dues in given time period. In most areas, it also creates a lien on the title and not a title transfer, regardless of its terms. The main difference between Mortgage and Deed of Trust is, it can be foreclosed by a non-judicial sale held by the trustee.
* Security deed
This mortgage instrument only use in the Georgia state of America. Unlike a mortgage, a security deed is an actual conveyance of real property in security of a debt. Upon the execution of such a deed, title passes to the grantee or lender, however the buyer maintains equitable title to use and enjoy the conveyed land subject to compliance with debt obligations. Security deeds must be recorded in the county where the land is located.