Buying a home needs thorough research and planning as it require proper budget. Today almost everybody have to take home loan to fulfill their dream of owning a house. Before making decision of taking a home loan every individual evaluates his capability of paying of the installments on time to avoid any penalty. But what if your monthly installment amount increases due to increase in interest rates on loan.
Sometimes we don’t consider these factors before taking such big financial decisions. Whatif after taking home loan from a bank or financial institution you find other banks offering better rates with more advantages. ‘Refinance Mortgage’ is one stop solutions for borrowers to get rid of the existing home loan which is either putting additional burden by imposing hidden charges or charging high rate of interest.
What Is Refinance Mortgage?
Refinance is, when borrower taken secondary loan to pay off his primary loan. In other words, when you take a loan for the purpose to pay back your current loan then in that case your secondary loan is called as refinance mortgage.
What Is The Purpose Of Refinance Mortgage?
Almost people refinance their mortgage to reduce their monthly installment payment.
Is It Advisable To Refinance Mortgage?
Only if borrower is getting the benefit of atleast 2% interest rate on his loan amount then only it is good to go for refinance mortgage.
What Are The Drawbacks Of Refinance Mortgage?
- Refinance mortgage can increase your loan repayment period.
- Refinance mortgage involves cost of processing loan which is quite high in most of the cases.
- Refinance can attract penalty on existing loan foreclosure.
What Are The Benefits Of Refinance Mortgage?
- You can choose an alternate option which offers low interest loan by refinancing your loan.
- You can get your loan refinance any number of times.
What Is The Eligibility Criteria To Get Your Loan Refinance?
- Your credit score should be good enough
- You have not missed any of your existing loan installment till date.