Refinance Mortgage India

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Refinancing is getting secured loan for paying off another loan against the same asset. In refinance mortgage, the rate of interest becomes low comparing to the rate of interest on the original loan and hence it helps you to save a lot. Refinance mortgage in India could be fruitful for you if you have a mortgage on your home and want to take another loan to pay off the first one. However, you also need to consider the amount of fees that you need to pay during refinancing before you go for refinance mortgage.

Why Go for Refinance Mortgage?

Here are a few advantages of refinance mortgage in India:
  • Your original loan may have higher rate of interest which again may have come down substantially in the present days. Through mortgage refinancing, you can take new loan to pay off the first one.

  • At the same time, you can also borrow more than the present loan balance, provided that you have enough home equity. You can use this extra cash for some other purposes as well.

  • You may also need mortgage refinancing to clear up your mortgage quickly. Through mortgage refinance, you can reduce the loan term and hence shorten the length of your mortgage.

  • You can also have the option to consolidate two mortgages into a single mortgage through mortgage refinancing. The monthly premium for the new refinance mortgage would be lower than the combined premiums of first two mortgages.

Avoiding Mortgage Refinance

Refinance of mortgage could be helpful for you in most of the case, but not always.

Following are the cases when you shouldn't go for mortgage refinancing in India:
  • When property values go down, refinance mortgage isn't a good option.
  • If you are paying off your first loan since a long time.
  • If you have wiped out enough equity.
  • If you have almost paid off your current loan and only a few years are left on your loan.