How to Refinance Your Housing or Mortgage Loan
Refinancing housing mortgage loan is more than shooting random emails or calling every bank in Singapore. You need to thoroughly compare housing loan rates in Singapore and the other terms and conditions thereof, before applying for refinancing your mortgage loan. Additionally, the process involves a lot of paperwork for refinancing to be complete.
Let’s find out some of the necessary preliminary steps that you’ll need to get your mortgage loan restructured.
Compare the old and new interest
The first and foremost reason for refinancing is that it helps you pay less than what you’re paying now. It may seem an appealing option to refinance your mortgage loan for another 20-year term or so, which in turn will bring down the monthly payment. However, it means that you’re paying the loan longer and even more than what you’re supposed to. So, you’ve to compare housing loan rates in Singapore and choose the suitable loan term to balance the monthly payment and reduce the borrowing costs as well.
You must consider how much interest you’ve paid by now and how much you’ll have to pay after restructuring your home loan. Keep in mind that the loan repayment structure ensures that the interest amount is paid initially. Thus, the longer you’re repaying the loan, the more you’re close to repaying the principal amount. Comparing both what you’ve paid and what you’ll have to pay after refinancing will give you a clear idea about the total cost of your home loan against both the options.
If you don’t extend the loan term while refinancing hoping to pay less for years, you can lower the rate of interest as well as trim down the term. Thus, the EMI you pay for repaying the rest of your home loan significantly decreases. Such decisions can be made only if you compare housing loan rates in Singapore properly before restructuring your mortgage loan.
Use a mortgage restructure calculator:
While you compare housing loan rates in Singapore and you decide that you’ll refinance your mortgage loan, you need to calculate the amount that you will have to pay after refinancing. You’ll find many websites that offer mortgage restructure calculator which helps you in calculating the amount. The app will calculate the monthly payment amount, monthly savings and even the amount that you save in the span of your loan term to give you a clear picture.
Thus, the mortgage restructure calculator helps you to compare housing loan rates in Singapore so that you can choose the best offer as per your requirements.
Compare various mortgage restructure rates:
If you’ve decided to go for housing loan refinance, you should call or email the loan lenders to get the basic information. As they’ll send you a document with the details of the payments, the loan terms and other fees, you can the compare housing loan rates in Singaporeto enjoy the reduced interest payment. Calculate using the online calculator and revert to the company that suits all your needs and you’re ready for refinancing your home loan for your private property or HDB flat.