Refinance Home Loan
With property prices spiralling across the country, it has become increasingly difficult to own property. You may have saved your hard-earned money to buy property but the dynamic real estate market always manages to surprise you with figures you refuse to take seriously.
Hence, you may have opted for a home loan at the time of making your purchase. However, since the loan is for an extended period of time, the dynamics of the market may change over its tenure. This could include changes in interest rates, too. Also, your income may increase during this period, along with an improved credit score. These gives you the option of refinancing.
Refinancing allows you to end your original loan and create a new one with a better home loan interest rate. This may prove to be favorable, especially for those who get the option of converting a variable interest rate to a fixed one. A reduced interest rate on your property loan can leave you with increased disposable income. Even a reduction of 0.5% on your home loan can result in great savings every month.
Refinancing also provides you with the option of either reducing or increasing the tenure of the loan according to your present financial situation. If you want to reduce the pressure on your monthly EMI towards the loan then increasing the tenure would help. On the other hand, if your income has increased and you have the financial arrangement to pay off more than your current EMI amount then it is recommended that you decrease the tenure. This would also help you to pay less towards the interest component on your loan.
Refinancing also helps you to use your home equity, the difference between the property value and the balance loan amount, to generate wealth. This can be done through investments in other property, shares or managed funds.
Avail of Tata Capital's refinancing option for your home loan to avail of various useful benefits.
Looking for a Home Loan? Calculate your EMI in 3 Easy Steps Using our Home Loan EMI Calculator.