Since global economic become worse, bank and government play their role to save this condition by cut interest rate. It is a good time to refinance. Everyone must re-look their loan agreement as bank will not highlight this change to you. You can get lower interest rate now.
Steps that you can do to consider refinancing.
# Check with your bank
Approach you bank, if you have a good payment record you may able to get better rates. Ask your bank whether it is willing to repackage your loan, if your bank does not respond try to find another bank
# Check the interest rate
One reason you do refinancing is to get better interest rate. But you must aware wit term and condition behind, look out if there are hidden cost, when they offer lower interest rate
# Align for your purpose to get loan
Just for your consideration, you must try to find best choice type loan. Are you investor who only need shorter lock period or are you new worker who want to pay your loan in small amount in the beginner and will increase gradually later
# Find out a bank that have good customer service
You want to refinancing your loan, need many information and help. You need customer service friendly who will help you to choose a loan that suitable with your lifestyle.
# Moving or zero moving cost
Moving cost typically consist of the processing fee imposed when you apply for loan. Have a brief look, when a bank offer zero moving cost interest will be higher. Compare the loan and look at the long term interest saving.
# Fixed rate, floating rate or hybrid
Fixed rate suits for customer who are less tolerant of interest rate. It can helps them to plan their finance better.
But some people like to have floating rates, they can enjoy saving when rates goes down, and the rates will not go up so dramatically.
Hybrid type is combined from fixed and floating rates as example they will fixed for first 5 yr and then wwill be floating after that.
# Flexi loan
A flexi loan allow you pay more when you have excess fund.
Ok you can plan to refinance your loan right now. Good luck
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April 9, 2009 at 3:17 PM
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My Life Thinking
April 9, 2009 at 9:07 PM
Very good post! thanks for sharing.