Considering the current economic situation where all the top sectors have been struggling to acquire a decent amount of revenue, the mortgage loan segment also witnessed slow growth. However, it has been anticipated that the situation is about to pan out with several schemes getting launched due to people’s inclination towards real estate investments.
Also, in order to cope with the market situation, it is wise to consider refinancing the mortgage loan whenever there is a price drop in that segment. This way not only one can make their EMIs affordable but also find better ways to save money.
Therefore, individuals can make use of this situation to refinance their existing loans and reap serious savings. However, before making such decisions, it is advisable to keep all the necessary aspects in mind.
Factors to consider before refinancing mortgage loan
By keeping the current situation in mind, it might be a good option to consider refinancing your loan against property. However, it is also important to look out for the future aspects, and following are some key suggestions to help you do that.
- Compare the interest rates
No matter how attractive the loan against property interest rate sounds in the beginning, there are several additional charges involved which usually vary from one lender to another. Therefore, make sure to conduct an interest rate comparison and figure out what other charges you will be paying on a monthly or yearly basis.
Since the ultimate goal is to make your monthly instalments more affordable and incur better savings, you should compare and opt for the lender that offers the lowest interest rate. Along with that, make sure to check their offered repayment tenor and if that suits perfectly with your repayment capacity.
- Check the eligibility
Having an existing mortgage loan does not qualify you as a potential borrower since there are various others factors involved. While refinancing seems like one of the ideal ways to effectively repay your existing loan, it is also necessary to tick off all the eligibility parameters from your new lender. Make sure you check all these aspects beforehand, so that you do not have to go through the loan rejection.
In most cases, financial institutions focus on steady income, having a decent repayment track record and CIBIL score, sufficient equity, etc. In order to get a fast approval, try to meet all these eligibility parameters before refinancing your mortgage loan.
- Check the closing costs
While refinancing seems ideal for you considering all the aspects you are going through at this point, the closing cost is another key factor that requires your equal attention. The closing costs usually depend on the financial institution and how your repayment track record has been throughout the loan tenor.
With various lending institutions providing pre-approved offers, refinancing your existing loan has been easier and affordable. These offers are available on different financial products as well such as home loans, loan against property, etc. You can check you pre-approved offer by entering just a few important details, including full name and phone number.
Also, it is advisable to understand all the charges on your loan against property including the processing charges, loan against property interest rates, etc., before making your decision.
