Want to lower your current mortgage interest? It can be refinanced by mortgage, interest-rate averaging and repayment. Read how you can also benefit from the low interest rate.
Mortgage interest recorded
Homeowners who have fixed their interest rate for a number of years do not have to watch as the mortgage interest rate rises. They too can benefit from the current low mortgage interest rate. We mention 3 ways in which you can lower the interest rate on your existing mortgage.
Transfer to a new mortgage
Refinancing offers the most options for reducing your mortgage interest. Because you take out a new mortgage, with which you pay off the old one, you can completely rebuild it. The saving is therefore the greatest. You can choose:
- The cheapest provider in the market: competition on the mortgage market has increased. These new providers often offer attractive mortgage rates for a specific target group.
- Another form of repayment: With a mortgage from before 2013, you may continue to borrow (partially) without repayment. This is not always the cheapest. Lenders often reward repayments with a lower mortgage interest rate.
- A new fixed-interest period. Fix the mortgage interest for a short period if you move house soon or with a falling mortgage interest. A long fixed-rate period is interesting with a rising mortgage interest rate. Also read: long-term mortgage interest wise?
- National Mortgage Guarantee or not? With an NHG mortgage you are eligible for an interest discount. However, sometimes a mortgage without NHG is cheaper.
When transferring, you pay costs for taking out the new mortgage and a fine for early repayment of the current mortgage. The lower mortgage interest rate must of course outweigh these costs. Have this calculated for you free of charge.
Adjust current mortgage
If you choose to stay with your current mortgage provider, your options for reducing mortgage interest rates are limited. You then do not have the option to choose another provider. You can, however, adjust the repayment form and the fixed-interest period.
More and more banks also offer interest-rate averaging. You then ask the bank to fund your current mortgage interest with the rate in the market. You then fix this lower mortgage interest rate for a new period. This new rate also includes the penalty interest for the missed income of the lender. Calculate your penalty interest here.
Adjusting the current mortgage with the lender can be interesting because the costs are lower. It is often an administrative act and a notary and appraisal are not always necessary. You will not get out of the penalty for early closing. The following also applies here: let us calculate for free which option is the most advantageous.
Reduce mortgage interest rates by paying off
The level of the mortgage interest rate is partly determined by the risk class. This is determined by the mortgage sum in relation to the home value. By lowering the mortgage amount you can qualify for a lower mortgage interest. It is of course also possible that your home has become more true. You can prove this with the WOZ value and a valuation.