Getting The Most Out Of Refinancing Your Loan
If you think a mortgage is a “set and forget” type of deal, think again!
There are a lot of misconceptions about refinancing and it can be hard to tell truth from fiction, especially if you’ve never done it before. Luckily, we’ve rounded up the most common myths and busted the for you!
Absolutely not! Refinancing is one of the most common ways to save on your mortgage loan. In fact, the smartest borrowers look at refinancing to consolidate their debts into an easy, single payment, and continuously refinance to get the best rates, therefore saving themselves thousands of pesos during the life of their loans.
Only a little, and only temporarily. It’s a necessary evil in order to benefit yourself long-term with better interest rates! Luckily, refinancing doesn’t hurt your score so extremely that it’s forever ruined – in fact, it’s not enough to harm your score long-term. Your credit score will rise again to it’s prior number with consistent payments made by yourself on time.
Whilst this can be true, it is not always the case. You can choose any lender to refinance with, but sticking with your current lender may be the best option purely because they offer a better deal. Staying with your current lender may be cheaper upfront because you don’t have to pay for any application fees, home evaluations, or similar, but these are small short-term costs that should be weighed against long-term savings with another bank.
Yes and no. Your current loan may charge early exit or discharge fees if you are within a certain time frame. Many banks charge application fees, require you to open a bank account with them, or charge other fees. The positive to this is that many banks in the Philippines offer “all in” financing where there are little to no upfront fees.
If the application and exit fees are high and the interest rates are low, it’s might not seem worth the effort to refinance. With money, a little goes a long way, and the same rings true for interest rates.
But, there are many reasons why people refinance, instead of just the interest rates!
It’s not any more difficult than securing any other loan. In fact, it might even be easier, since you have experience getting a loan already and know which documents to gather ahead of time. With the added benefit of a mortgage broker, refinancing has never been easier.
If you think a mortgage is a “set and forget” type of deal, think again!
If you’re thinking of refinancing, there are many things to consider before committing to a fresh loan.
A refinancing loan is a type of loan that replaces your current home loan with a new one that has more desirable terms for you.
There are many myths about refinancing, but there’s no reason to believe any of them.
If you think a mortgage is a “set and forget” type of deal, think again!
If you’re thinking of refinancing, there are many things to consider before committing to a fresh loan.
A refinancing loan is a type of loan that replaces your current home loan with a new one that has more desirable terms for you.
There are many myths about refinancing, but there’s no reason to believe any of them.
*This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and if necessary, seek appropriate professional advice. Interest rates displayed are dependent on qualifying for a home loan with your chosen Bank. We cannot guarantee clients will avail the advertised rate.
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