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Everything About Home Loan Refinancing?

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  • Highlights

  • What is Home Loan Refinancing?

  • Benefits of Home Loan Refinancing

  • How Can I Refinance My Home Loan?

It’s quite understandable if you seek a better home loan offer than the one you currently have. Perhaps you settled for the first one you came across and did not make time to consider certain factors like the home loan interest rate, schedule for EMI payments, and the duration of the loan. Perhaps, there's a different lender who advertises a home loan package that's lenient on your purse. Knowing a nicer loan offer exists will make you consider other avenues to avail such opportunities. However, do you wonder if it is legal to consider this? You are allowed to consider other options if the current one has failed to satisfy you— home loan refinancing is a great way to do that. It entails moving your remaining home loan balance to the account of a new lender. However, before you decide to refinance a home loan, ensure that the new lender's offer outmatches the current one.

Refinancing home loans in India is a means of completing the loan repayment process, though it generates fresh debts. To refinance a home loan is to substitute the current home loan with a new one. A new set of terms and conditions apply. Home loan refinancing involves a borrower receiving a new loan so they can repay the previous loan at a reduced rate of interest. This allows borrowers to increase their savings towards the repayment of the new loan. Home loan refinancing is a wonderful way to ease the burden of EMI payment, and it allows you to take action if you feel displeased with the quality of your lender's home loan offer. When you agree to refinance a home loan, your home loan no longer becomes a concern of the current lender but shifts to a fresh lender. Refinancing a home loan in India promises a reduction in your EMI payments, thereby allowing you to enjoy low rates of interest till the home loan is repaid. Stakeholders in the loan industry often call home loan refinancing a home loan balance transfer

Several lenders offer to help refinance home loans in India, but we recommend that you select a lender that is sincere and has your best interests at heart. A good lender will always save you time, effort, and cash. Bajaj Housing Finance offers exquisite home loan refinancing deals that enable you to easily switch lenders. The sooner you take advantage of this, the greater your chances of a reduced home loan burden. Read on to learn what is home loan refinancing, the factors to consider before you refinance home loan and how to refinance home loan. 

What is Home Loan Refinancing?

This is an offer to consolidate your home loan and it entails moving your current home loan to the account of a new lender. It means switching lenders, and what's more— the greatest benefit from this is that you enjoy a reduced rate of interest when you decide to refinance a home loan. This should only be an option when you are unsatisfied with the current lender. 

To see the benefits of refinancing home loan in India and how to refinance home loans, check the section below.

Benefits of Home Loan Refinancing

The benefits of home loan refinancing include:

  • When you opt to refinance a home loan, you enjoy a reduced rate of interest. Upon discovery of other home loan lenders that provide lenient interest rates, switching sides means that you will enjoy the newly reduced rate of interest. So, by simply refinancing a home loan in India, you benefit from low-interest rates.
  • One of home loan refinancing's perks is that you can move from a fixed rate to a floating rate for your home loan. A home loan can be disbursed on a fixed rate basis or a floating rate basis. Usually, this is determined during the home loan sanction stage. But, if you want a switch, a home loan refinancing deal is a wise way to get it done as you can select a type of interest that suits your pocket. 
  • Opting to refinance home loans means that you can alter the duration of the loan or even the EMI schedule. Sometimes, your financial stage changes and you may become cash-strapped. When this happens, you will want to lengthen the home loan duration which means lower EMI payments. Or you suddenly become financially buoyant and want to shorten your loan tenor by paying a higher EMI. For both instances, a home loan refinancing ensures that you get to alter the outline of your home loan the way you want. 
  • When you switch lenders, you may enjoy an improved relationship with the new lender. You may have left your previous lender on account of their attitude, like nonchalant behaviour. When you decide to refinance home loans, you stand to enjoy great customer service from the new lender.
  • A quick tip: Ensure that the current lender's customer service pales in comparison with your prospective lender to enjoy this benefit.

How Can I Refinance My Home Loan?

For customers asking “how can I refinance my home loan?”, the easiest way to refinance a home loan is to see that your new lender clears the debts you owe the previous lender. Doing this allows the new lender to absorb the loan amount. Upon selection of a fresh lender with pleasant conditions and services, you can finalize the agreement with the new lender and the lender repays the remaining home loan. After this, you begin paying reduced EMIs to your new lender. 

Now that you know what is home loan refinancing, the benefits from when you refinance home loans, how to refinance home loan, it is wise to monitor recent trends as regards interest rates and the EMI schedule offered by several lenders. Home loan refinancing helps you save more and improves your financial condition. 


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