It is important to select the Bank, whose rate is competitive in the market. Another factor is the terms and conditions of the Loan contract. Care should be taken with respect to the clause pertaining to prepayment or foreclosure. Some Banks charge high penalty for prepayments or foreclosure. The terms and conditions of refinance lender
Terms and conditions of the refinancing bank that was impediment at the time of initial instance of purchase, say the age of second hand flat, will still prevail. The situation is aggravated with
Mortgage refinancing is difficult in times of economic recession, when the value of properties fall or atleast stagnate. With falling property values, the cost of collateral securities will fetch less than the loan outstanding in the event of default by the borrower. This risk perception makes the banks skeptical about mortgage refinancing.
Next in line comes, other unsecured loan like personal loan from Banks, moneylenders, etc. Getting personal loan or a loan from private, unorganised moneylenders is child’s play. In fact, with the accumulation of deposits with Banks, they are forced to convert them into productive investments. The credit department of these Banks uses various marketing techniques
First and foremost is the Home refinancing. The loan amount under this category is high and reduction in interest rates has significant effect on the finances of the borrower.