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Tips for Refinancing your Home Loan

  • Highlights

  • Refinancing is an optimal way to save more money when you’re repaying your debt

  • Make all the calculations and check how much you will be saving

  • Use a home loan EMI calculator to determine how much interest you’ll save

There are some great ways to save money when you’re paying a home loan. You can find a lower interest rate, or switch from a fixed rate to a variable rate, or vice versa. You may also want to consolidate your debt, so that you reduce the overall interest you’re paying.
Here are some easy tips to you need to keep in mind before going for a home loan balance transfer:

Learn How to Identify High Mortgage Charges

If there is only a nominal difference between the interest rates of your previous loan and new loan, you might end up paying more than you were with your previous loan. This usually happens when you mortgage assets with your refinancing lender and are required to pay heavy mortgage fees.

Choose the Right Lender

When you’re looking to transfer your Home Loan, don’t blindly choose the first lender you come across. Shop around a little to make sure you find a lender who offers you the best benefits. Most important of all, your lender shouldn’t levy high prepayment penalties on you.

Additional Read: Your Guide to Getting Better Home Loan Interest Rate

6 Things to Remember for First Time Home Buyer

Stay in the Know

When you’re planning on refinancing a loan, you need to keep your eyes open. Watch the market, keep track of interest rates, make all the calculations that you need to, and figure out exactly how much you will be saving. You should also research the new loan that you’re planning on taking, so that you will know how much you need to pay every month once you refinance your loan. An online Home Loan EMI Calculator will help you do this.

And how often should you refinance your Home Loan? As often as you need to keep saving money! When you have a Home Loan provider that makes the job easy for you, you don’t need to stop for as long as interest rates continue to fall. All you have to do is maintain a firm grip on market trends and interest rate forecasts to make sure you don’t have to pay any additional costs.
Here's a handy guide to help you refinance in 5 easy steps!

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