First
let us understand what refinancing means:
Refinancing means repaying an existing home loan before its tenure with the
money from a new loan taken under new terms and conditions.
Some people do this due to the following reasons:
1. Interest rates in the economy have fallen and it makes sense to retire
the old high cost fixed rate loan with a new fixed rate loan at the lower
rate. You can do this provided rates have fallen enough to cover your
prepayment penalty and the up front costs of initiating a new loan (like
processing fee, administrative fee etc.)
2. If you plan to sell the home during the tenure of the original loan you
will need to terminate the loan borrowing the remaining principal amount
against the home equity or from the potential buyer.
3. Switch from a Fixed rate loan to a more flexible Floating rate / Hybrid
product You may want to switch from a Floating rate loan to a fixed rate
loan if interest rates start to move up (see the discussion on "How will
interest rates move?" under 'Choosing a Loan') Speak to us for customized
options.
4. You can lower your monthly installment payments by extending the tenure
of the new loan. In order to improve your monthly cash flows you can prepay
an existing loan with 5 years to go by taking a new 15 year loan for the
remaining principal amount.
Sundaram Home Finance will be very happy to be a part of your refinancing
exercise. Do contact us for further details and
special customized options.
Welcome
Are you interested in getting Home Renovation/Extension Loan?
Reach Us
First
let us understand what refinancing means:
