Friday, May 27, 2022

Home Loan Refinancing: Best time and benefits to get home loan refinance, Know the whole process

Home loan interest rates are at their lowest level in the year 2021. But the old home loan and its high interest remain a big headache for the people. In such a situation, let us know the way through which you can easily get rid of the old loan and reduce your interest.

What is home loan refinancing and what are its benefits?

In-home loan refinancing, the existing home loan is repaid by taking a new home loan with terms like lower interest rate. A new loan can be taken from the same bank or from a new bank. With the money received from the new loan, you can close the old loan and start repayment of the new loan. Since the interest rate will be lower in the new loan, then the EMI burden will be less and the loan will also end in a shorter period.

Read More: Renault’s KWID MY21 car launched with a price of less than 5 lakhs, know everything from features to offers

Get a better understanding of refinancing

Suppose you are running a loan of Rs 50 lakh for 20 years at an interest rate of 8% per annum. In such a situation, there will be a total interest of Rs 50.37 lakh on this loan. If this loan is refinanced, under which the interest rate is 7 percent, then the total interest to be paid will come down to Rs 43.03 lakh. That is a saving of about Rs 7.34 lakh.

Which is the best time to refinance?

It is better to refinance an already running loan before the first half of its tenure passes. The loan should be refinanced only if the second loan is available at a lower rate of interest or when your credit score and income are better than before. Refinancing has a cost. Consider loan refinancing only when the estimated savings from refinancing are sitting more than the cost.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Latest

Your EMI on your loan could be lowered by up to Rs 5000! Know how to play this game.

Calculate Your Home Loan: This great news is exclusively for you if you are likewise plagued by house loan EMI. Today, we've got a wonderful...

Good News for farmers! This government bank is providing 50 lakh rupees to build a house; please complete this work as soon as possible

BOI Star Kisan Ghar: If you are a Bank of India customer who is also a farmer, the bank is now offering you fantastic deals....

Alert! From the ITR file to adding a nominee in PF, Complete these important tasks within this month

The last month of the year 2021 is going on. It is necessary to settle many important works in this month. Actually, December 31...

Home Loan Rule: Applying for Home Loan? Know these tips important tips about Home Loan

If you are also about to buy a house or flat and are going to apply for a home loan, then there is news...

SBI made home loan cheaper, Everyone will get a loan at 6.7% under this festive offer

According to the press release issued by State Bank, SBI currently gives more than 75 lakh home loans at an interest rate of 7.15...

Most Popular

Subscribe

* indicates required