Having a home of your own is a dream of millions of people in India. But the sad part is that not all people get the chance to buy a house. The reason behind this is that the country is still in the developing phase. People do not have so much money to buy a buy. Many people are living below the poverty line.
To tackle this situation, one can go for the option of home loans. Often people go for the option of loan refinancing. It is the method of getting a new loan in place of an existing loan. The person takes another loan to pay off the existing one. The reason behind refinancing the housing loan maybe:
- The interest rates are lower
- To get top-up to the existing amount
Some of the most common reasons behind home loan refinancing are as follows:
- Shifting from floating loans to fixed loans: The person may be paying a higher interest rate in the case of floating home loans. In this case, he/she is more likely to shift to a fixed loan option where the EMI is fixed. The case can be vice versa too but in both cases, people tempt to go for refinancing.
- Saving the interest cost: If the initial lender is offering a higher interest rate, often people shift to new lenders to bring down the overall EMI. The declining interest rate leads to refinancing.
- Additional loan opportunity: People take top-up loans on the existing loans.
- Change in financial status: Many times the monthly income of the person gets decreased or some unforeseen problem occurs where paying the loan gets difficult. In this scenario, people can go for loan refinancing where the loan tenure is much more than the existing one. It helps in bringing down the EMI.
- Poor service of the existing bank: Manyatimes the bank service is very poor like issuing a bank statement, bad customer service, etc.
The option of refinancing is also available in the case of personal loans.
Before going for loan refinancing, one should consider the following things:
- Know your credit score
- Know the home equity
- Calculate the debt to income ratio
- Know the cost of refinancing
- One should know the breakeven points
- Know the taxes
One can go for the option of refinancing immediately after purchasing the home. Also, one can go for a housing loan refinancing from the same bank.
If you are new to this and do not have much idea about home loans and refinancing, you can always consult Shubham housing loans. They have disbursed an amount of up to 3000 crores and above. They have 84 branches all over India and is spread across 73 cities and 9 states. If you are dreaming of a house of your own, this is your go-to place. They provide easily availed loans. All you need to do is to provide valid documents. Whether the loan is big or small, it is sanctioned in no time. One needs to be eligible for the same.
The refinancing option is made available by the officials in no time. They make sure that documents are complete and genuine. All the official hold skills and years of experience in this field.
In today’s time, everyone needs security. A house is what it provides. Buying a house is not easy. Everything is so expensive, that people with informal incomes cannot afford a big house. But now, it is not the case. You can get a home loan easily now. All you need is an application form, photo identity proof, address proof, income proof, and bank passbook.
So what are you waiting for? Your home sweet home is just a click away. Contact now!
