5 Scenarios Where Home Loan Refinance Is a Good Idea

Mozam By Mozam, 31st Jan 2018 | Follow this author | RSS Feed | Short URL http://nut.bz/1muvn1hq/
Posted in Wikinut>Business>Accounting & Finance

Housing loan refinance has become a very common option for thousands of borrowers in India. It’s a simple process wherein you transfer your outstanding balance from your current lender to a new lender.

5 scenarios when opting to refinance your house loan is a good idea

1. Poor Customer Service:

This is one of the leading reasons most lenders decide to refinance their home loans with another lender. If you too find the service of your current lender less than satisfactory, you can opt to refinance your housing loan with a new lender.

You can look online to find out which lenders have a higher standard of customer service by visiting the many housing loan aggregator sites. You should read reviews, check customer testimonials and compare ratings and accordingly select a new lender to refinance your home loan.

2. When You See A Lower Interest Rate.

This is probably the main reason why most borrowers opt to refinance their house loan. If you are currently paying a high rate of interest and see another lender offering lowered interest rates, you can opt to refinance your loan with that lender.

You can again visit one of the many aggregator sites to compare interest rates of the various lenders, once you find one that is providing you a lower interest rate, you can opt to transfer your balance amount.

3. When You Are In Need Of A Top-Up Loan.

Sometimes, you might find yourself in need of more funds on top of the loan you’ve already taken. These funds could be to renovate, extend or repair your home. In such cases, if your current lender isn’t willing to provide you an additional loan amount, you can opt to refinance your housing loan. There are many lenders who offer to provide additional top-up loans to the tune of up to Rs. 50.

4. When You Are Not Comfortable With The Repayment Options Of Your Home Loan.

If you are not comfortable with the repayment options of your current lender, you can opt to refinance you loan with another financer that offers more options or a better repayment option. Some lenders offer as many as 5 different repayment options when you choose to refinance your housing loan with them.

If you find yourself in any one of these scenarios, then you definitely consider refinancing your home loan. It’s a great option and you must at least give it a thought.
However, there are a few things you need to keep in mind before refinancing your housing loan. For instance, there are quite a few charges associated with housing loan refinance, your current lender might require you to pay some switching fees and your new lender might levy processing fees as well.

Only if you feel that it’s worth paying these charges or the savings obtained from switch lenders outweigh these charges should you opt for home loan refinance. Also, it’s a wise idea to consult a financial expert before committing to the decision.

Tags

Home Loan, Home Loan Refinance, Home Loans

Meet the author

author avatar Mozam
Mozam Khan is a Profession blogger since 2015, He has been written and Publishing blog and article on home loan, home loan interest and finance services.

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