Mortgage refinancing essentially refers to the process of replacing your current home loan with a new mortgage that offers more favorable terms and conditions. For instance, a lower monthly repayment, reduced interest rate, and/or a considerably shorter tenure albeit at the cost of having the quantum of loan that you need to pay off may turn out to be on the higher side over the life of your mortgage.

A few of the most significant advantages of loan refinancing include having the option to reduce the interest rate of your mortgage, increase or decrease your loan tenure, and debt consolidation. However, you must make sure to consider the interest rate as well as all applicable charges to find out beforehand whether you would be able to save money or not over the life of your new mortgage when contemplating refinancing and looking for a different lender.

Since loan refinancing allows you to change the mortgage repayment tenure, modifying the same from three to two decades, i.e., thirty to twenty years, may help accomplish certain financial objectives. Settling your debt early corresponds to paying less interest across the loan term. On the contrary, extending it does translate to a lower monthly repayment, which means more liquidity and putting less stress on your finances, but the total loan value increases as well throughout your mortgage tenure.

Call us now for any queries or further information on how you may benefit by refinancing your existing home loan from Royal King Mortgages!