Advantages of Refinancing Your Home Loan
Saving money should always be on our agenda and refinancing your Home Loan is an important tool to do just that. Here are a few tips for refinancing your Home Loan and some pointers on how to get better deals.
Be smart and stay informed about the fluctuations in the finance markets. Let these market trends reflect in your Home Loan repayment schedule. If the market is down, reduce your interest rates and opt for variables or fixed interest rates depending on what is suitable for you.
If there is an increase in your income, you can refinance your Home Loan for a shorter tenure and higher EMIs. If there are additional burdens on you because of high medical bills, etc. you can use the refinancing option on Home Loan to increase your tenure and lower your EMIs, giving you a comfortable repayment schedule. You can even choose to prepay your Home Loan and work out a structure which suits you the best.
When you are looking to refinance your Home Loan, look for a lender whose terms and conditions work for you and apply online. There are additional charges like service costs, valuation fee and prepayment penalties, etc. so read the contract carefully. Choose a lender who will give you good service in terms of issuing statements in time and one who has a good customer support system. Be aware that the new lender will require legal verification of property and your credentials and will run a credit check on your previous loan and repayment records.
If you have several loans which you are paying off, it’s better to refinance and consolidate your loans under one umbrella. This may not only reduce the interest rate, but will also make it easy for you to track and keep records.
As you begin to refinance your Home Loan, transfer all relevant documents from the current lender and attain maximum benefit.