Particular apparently the new borrowers and improperly accept that refinancing your home could only happens if you have paid back your property mortgage so you can a major the amount. Anyone else envision unless you are able to afford with you, refinancing your home is merely a dream. For people who regarded as one or all, dont care. Speaking of domestic refinancing mythology. Refinancing your property mortgage can in fact boost your financial fitness, through the elimination of month-to-month EMIs or reducing the quantity of notice you could end up using regarding the costlier existing financing.

Misconception step 1 – Refinancing is costly

Financial institutions into the India levy good pre-fee penalty of around dos-5% of an excellent principal number when your home loan debtor chooses to re-finance mortgage from an alternative financial. As well as, after you have accessible to refinance your residence financing that have good the brand new bank, the new financial will cost you a handling commission. Read the rest of this entry »