ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A home loan in which the interest rate changes depending on current rates in effort
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To finance a home again with a new loan & a new interest rate
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An estimate of the value of the property
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A loan which uses the equity in your house to secure your loan
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Detailed explanation-1: -What does refinancing your home loan mean? Refinancing your home loan is nothing but a home loan balance transfer. It simply means the option to switch to another lender who can give a lower home loan interest rate. With home loan balance transfer, you can transfer home loan from one housing finance company to another.
Detailed explanation-2: -Refinancing a loan is when a borrower replaces their current debt obligation with one that has more favorable terms. Through this process, a borrower takes out a new loan to pay off their existing debt, and the terms of the original loan are replaced with an updated agreement.
Detailed explanation-3: -You don’t have to refinance with your current lender. If you choose a different lender, that new lender pays off your current loan, ending your relationship with your old lender. Don’t be afraid to shop around and compare each lender’s current mortgage interest rates, availability and client satisfaction scores.
Detailed explanation-4: -Refinancing involves paying out your current loan with a new one. It may shorten your loan term and reduce your repayments, so you can afford to make extra mortgage repayments and own your home sooner.
Detailed explanation-5: -Refinancing doesn’t reset the repayment term of your loan, but it does replace your current loan with a new loan. You may be able to choose from different offers for your new loan depending on your goals, including a longer or shorter repayment term.