Having a home is everybody’s dream. There are a variety of home loans available today. Choosing the most suitable loan available is the only thing to be done. After a few years of repayment of the loan, the repayment scheme or interest rate may turn out to be unsuitable to a person. The interest rate may be higher than the other loan schemes, or repayment schedules may not seem comfortable when there are many other loans that offer the same.
It is in this kind of situation that a customer of bank may consider of a refinancing. Home Refinancing is nothing but shifting your loan into a more comfortable scheme of loan. This scheme is a big convenience and relief to common man and save them from paying a higher interest rate when plenty of lower interest rate schemes are available.
Refinancing is possible only if a minimum specified period of repayment is already completed in the existing home loan. Also there might be a prepayment penalty that might be attached to current loan while transferring it into a more convenient scheme. The regularity of repayment of existing loan and the credibility of the customer will also be looked into when a refinancing is offered.