Should I refinance ?
Why should we consider to refinance our home loan or mortgage loan? Let say, if you have difficulty to pay-off your home loan repayment after 5 years or you wish to generate additional cash flow to reinvest, then it would be the best choice for you. Refinancing a home loan or mortgage loan can help you to pay-off an existing outstanding loan as well as replacing it with a new one.
The solution to “Should I refinance?” is a complex one, as every situation is different and no two homeowners are ever really in the exact same situation.
Savings is also one of the reasons where homeowners opt for refinancing.
1) Obtaining a lower interest rate that causes one’s monthly mortgage payment to be reduced.
2) Take cash out for debt consolidating or home improvement. Consolidating debts such as credit cards to reduce monthly repayments and to have sufficient cash for house renovation, this is one of the solutions. Housing loan have lower interest rates compared to personal loans or credit card cash advances.
3) Reducing the term of the loan, thus saving money over the life of the loan. For example, refinancing from a 30-year loan to a 15-year loan might result in higher monthly payments, but the total amount of the payments made during the life of the loan is reduced significantly.
4) Some refinance their homes to convert their floating rate loan to a fixed loan.
So how does one refinance? What are the processes involved? Here is where professionals from Smart Choice Solution will step in to assist you in every aspect of the refinancing process. Call now for a coffee session to review your needs and requirements.