If you have gotten a home loan recently, you know how stressful loan repayments can get. Long loan tenures and substantial loan EMIs are a given if you have taken a larger loan amount. And high home loan rates only make repayments harder. But with home loan refinancing, managing home loan repayments is easier.
That’s right. When you refinance your home loan, you essentially transfer your outstanding home loan to a new lender to repay your debt at better terms. Usually, this means you save a lot more on loan repayments too.
Curious about how you can save more through loan refinancing? Read on to find out.
Save on loan interest
This is among the top reasons for borrowers to refinance their home loans. And if you’re unsure, this is how it works.
When you refinance your loan, you usually choose a lender offering a lower home loan rate. This way, you lower the loan EMIs and also save money on loan interest.
If you’re already thinking ‘when can I refinance my home loan?’ The answer is right now. You see, home loan rates are on a multi-year low currently. So, refinancing your loan now can help you save more funds. Even better if you have plenty of loan installments remaining.
Change from fixed to a floating rate and vice versa
Sure, you can choose between fixed and floating home loan interest rates at the beginning of your tenure. But what if you realize that your loan repayments could be easier if you chose a different interest rate in the middle of your term? Then you can simply opt for the interest rate of your choice while refinancing your home loan. This can help you save a ton of funds, especially if you are burdened with a high home loan interest.
You may have to take an additional loan to meet your financial obligations while still paying off your home loan. But did you know you could save money while still paying off these financial obligations? Yes, when you refinance housing loan, you can get a loan top-up to consolidate your debt at your new lender’s home loan rates. This helps you avoid paying off debts at multiple interest rates and makes debt repayment simpler for you. Besides, you also save the total amount of money you spend on interest since you repay one loan at a nominal interest rate.
Now that you know home loan refinancing can help you save money, the next step is looking for a suitable lending partner.
Wondering what criteria, you should look for before you refinance your loan with a new lender? Well, affordable interest rates, comfortable loan terms, and low refinancing fees are some of the basic requirements. A simplified online loan process, minimal documentation, and quick disbursals are added bonuses. And at Tata Capital, we provide you with all of them.
So, what are you waiting for? Refinance your housing loan with Tata Capital and save more money on your loans today!