Free refinance of mortgage
Refinance of mortgage means financing the mortgaged asset again. In majority of cases, home loans are used for refinance. People go for refinance because of the reduced interest rates. What is free refinance of mortgage?
Following are the reasons why people go for free refinances of Mortgage.
*There can be a difference between two interest rates. What you had taken at the time of mortgaging and today. To reduce the rate of interest one can go for this. If you realize that rate of interest is increasing you can always opt for free refinance of mortgage.
*At the time of taking first loan, you may have opted for 15 years and now you want to shift to a 10-year plan.
*There may be cases where you need money for some immediate need. In such emergencies, you can use this option.
*Maybe you are short of money and need money to pay your dividend.
*You can get this refinance and use it for the purpose of investment in some other property.
When you are going for free refinance you need to thoroughly understand the creditworthiness of the company. You may be refinancing with the same company from whom you have taken the main finance or if you find some, other companies which offer better interest rates. If you feel that the rates offered by the other company are better, you can switch over to that company. However, when any company which offers free refinance, you need to do your research done to check the authenticity of the company.
Many brokers can help you in understanding the concept of refinancing once you tell them your requirement. Of course choosing the correct broker is again a responsibility.
Following are the important points you need to consider while going for free refinance of mortgage.
*You need to calculate the actual number of years with new interest rate if you are refinancing for the lower interest rates.
*Check for the hidden costs.
*Check for current interest rates of at least 3-4 financial institutions and then decide.
*Going from fixed rate to variable is risky because today it might be less but it can increase anytime.
*The options will be either you reduce your monthly EMI or you can reduce number of months. Think which option is more suitable to you.
House loan is the main option for refinancing, but you have other property like farm, godown or garage also where free refinance of mortgage is beneficial to you.
Following are the reasons why people go for free refinances of Mortgage.
*There can be a difference between two interest rates. What you had taken at the time of mortgaging and today. To reduce the rate of interest one can go for this. If you realize that rate of interest is increasing you can always opt for free refinance of mortgage.
*At the time of taking first loan, you may have opted for 15 years and now you want to shift to a 10-year plan.
*There may be cases where you need money for some immediate need. In such emergencies, you can use this option.
*Maybe you are short of money and need money to pay your dividend.
*You can get this refinance and use it for the purpose of investment in some other property.
When you are going for free refinance you need to thoroughly understand the creditworthiness of the company. You may be refinancing with the same company from whom you have taken the main finance or if you find some, other companies which offer better interest rates. If you feel that the rates offered by the other company are better, you can switch over to that company. However, when any company which offers free refinance, you need to do your research done to check the authenticity of the company.
Many brokers can help you in understanding the concept of refinancing once you tell them your requirement. Of course choosing the correct broker is again a responsibility.
Following are the important points you need to consider while going for free refinance of mortgage.
*You need to calculate the actual number of years with new interest rate if you are refinancing for the lower interest rates.
*Check for the hidden costs.
*Check for current interest rates of at least 3-4 financial institutions and then decide.
*Going from fixed rate to variable is risky because today it might be less but it can increase anytime.
*The options will be either you reduce your monthly EMI or you can reduce number of months. Think which option is more suitable to you.
House loan is the main option for refinancing, but you have other property like farm, godown or garage also where free refinance of mortgage is beneficial to you.
Source...