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RESOURCES
• Agents in real estate
• The deal in mortgaging
• Hidden Cost in mortgaging –
Plan for your finance
• Mortgaging or Rent – vital decision
• Refinance - The competitive market
• Plan your finance – mortgaging is an
additional burden
• Borrowing in Real Estate
• Mortgaging Jargons
• The Fundamental Needs
RELATED LINKS
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Refinance - The Competitive Market
The recent growth of mortgaging and the tremendous market competition have reached the popularity of refinance to the hilt. As more and more people have been mortgaging their properties and buying their home in various finance schemes, most of the major financial institutes and banks have come up with their house building loan schemes. ‘The survival of the fittest’ has forced them to offer various attractive schemes to the buyers. The late entrants have even made the traditional and reputed banks to bring down their rate of interest in financing.
Originally, refinance had been conceptualized to widen the scope to the buyer, who wanted to buy their second real estate even after mortgaging the first one. The equation had been very simple – the second lender would square off the debt for the first one as well as finance for the second one. Now days, the rat race of the banks and mortgaging companies have paved the way for refinancing even the existing properties. The buyer gets a mileage either on the rate of interest or more funds or even some special waivers. The buyer takes the opportunity of the better mortgaging rates and terms and conditions.
Lets take a simple example; one had taken a mortgaging at the rate of 18% and the current rate of interest has come down to 7% or 8%. So, it is always advisable that the buyer takes the advantage of refinancing for a considerable gain in the rate of interest. Generally the pay off needs some penalty charges, but still the amount of gain in terms of repayment amount becomes much higher.
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