Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Find Out How Refinancing Works to Your Advantage

% of readers think this story is Fact. Add your two cents.


No matter how hard you try, circumstances often bring changes in life. The same case applies to loans. You might have to borrow some more money. If that happens, a lender gives you a new facility. Swapping of loans stems from reasons such as:

  • When you seek for reduced interest rates
  • Shortening the repayment period
  • Converting from variable to fixed rate

Refinancing comes about when you want to swap a loan. Perhaps you have found another lender who promises to offer better terms. Alternatively, you may opt to shop for a different type of loan package.

Here’s what happens in the process:

  • New loan application
  • Clearing the outstanding amount on the current loan
  • A new credit facility takes effect
  • Need for refinancing

Despite the extent of the process involved, refinancing comes with benefits such as:

Savings

When you refinance a credit facility, you save money which you would otherwise have paid as interest. What happens is that as you move from one loan to another package, you do so at a lower rate of interest.

Cash flow

Take, for instance, a mortgage that you currently service. To date, you may have made several payments as per the contract. Refinancing offers you a chance to lower these repayments. Eventually, you end up with more money. Extra cash in your coffers allows you to meet additional monthly expenses.

Loan term

Refinancing can result in shifting to a loan with a shorter lifespan than the first. An example is a home loan with a 30-year repayment period. You could refinance it to a 15-year package. Do some calculation and ascertain the benefits that come with the shorter term. Sites such as Refinansiering.nu have online loan calculators to assist you.

Debt consolidation

Multiple loans can cause you much inconvenience. Consider consolidating them into one. Negotiate with prospective lenders such that you get a lower rate of interest than what you currently pay. However, you must keep off from the temptation to start overspending once you recover from the weight of debt.

Type of loan

Even when the benefit does not emanate from interest rate reduction, there are still other ways in which you stand to gain from refinancing. Take for instance where you have a loan at a variable rate. You could shift to the fixed rate alternative. Variable or adjustable-rate loans start low but increase with time.

What next

Once you have understood the different ways of refinancing and what each holds for you, research broadly. Search for lenders and their corresponding rates. Alternatively, you could request your bank to reopen the negotiation window. Before you do, find out what other banks are offering for the same type of loan.

As a financial score, refinancing helps reduce your repayment amount. The option also shortens the loan period. At the same time, you can control your borrowing habits. By exercising prudence, you can manage your debt. Before taking this option, assess your situation carefully. Seek advice from someone who understands debt financing. Above all, be a disciplined person by avoiding much debt.



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.