gorizbirkom.org

Even though refinancing a housing loan can save you thousands of dollars you will be stunned that not that many individuals actually take the time to do it. If you considered the time it requires and calculate the cost saving and equate that to how much you get paid per hour it could be like not going to work for several weeks. Consider the following aspects so that you can see how easy it is to refinance your loan today.

Current Mortgage Interest Rate

It is decidedly a good indication for you to explore refinancing when your current interest rate is higher than available home loan packages on the market. A first step to take is to go back to your current bank or financial institution and ask them to revise your package, otherwise known as repricing. If your lender comes back with an offer, it will ordinarily be better than your existing one. You can then compare this offer with offers from other lenders to see whether you should switch or stay put.

Lock-in and Clawback Periods

When you take up a housing loan, there may be a lock-in period where your housing lender will charge you a penalisation fee, ordinarily a percentage of your outstanding loan amount, if you were to fully repay your housing loan. Almost all housing loans also come with a clawback period where the lender will claim back “freebies”, such as legal subsidies, that they “gave” you when you take up your mortgage (Note: lock-in period is separate from clawback period). It may not be valuable for you to refinance due to such costs.

Loan Quantum

The larger your mortgage amount, the larger your savings for the same reduction in interest rates. For instance, 1% on a loan of S$100,000 is much less than 1% on a loan of S$500,000. However, fixed cost to refinancing, which represents mainly of legal fees, do not vary much with loan quantum. The difference between your existing and refinancing interest rates, therefore, has to be bigger for a comparatively smaller loan as fixed cost eats into a more substantial part of your interest rate savings.

Perceived Interest Rate Movements

Your view on how interest rates is moving can be a factor when considering whether you should refinance. If you are presently on a fixed rate package and believe interest rates are dropping, you may want to refinance to a floating rate package. Conversely, if you are on floating rates and believe interest rates are rocketing, shifting to fixed rates may be a solid choice.

Individual Financial Assessment

If there is a change in your financial state, you may want to change your package particulars via refinancing. For example, you are starting your own business and do not want volatility in other areas. Give some thought to taking up a fixed rate package. Maybe you want cash to invest in another property. Consider increasing your loan quantum. Or your monthly income has increased and you want to minimise interest loan payments. Contemplate reducing your loan tenure.

Consider calling us today if you are looking for refinancing in Singapore. We can save you a lot of money plus give you the latest advice all for free.

Find out more about a premier housing loan advisory firm, providing housing loans with free mortgage broking. Get a totally unique version of this article from our article submission service

Related posts:

1. Some Reasons To Buy A Home Most people will say that the biggest benefit of owning...
2. Mortgage Interest Rates Huntsville Are Low Right Now Mortgage interest rates Huntsville are reaching record lows it seems...
3. Saving Your Home By Avoiding Foreclosure No person who owns a house would want to face...
4. Ten Steps To Buy Your First Home Are you looking to buy a home? People are getting...
5. What Is Actually Mortgage Insurance And How come We Need It Exactly why do people you need mortgage insurance? The answer...

Related posts brought to you by Yet Another Related Posts Plugin.