Some of us must be contemplating on refinancing our housing loans to enjoy the lower interest rates offered by other banks. So it it true that all who refinance enjoy great savings? Read on...
Usually, banks would offer you package deals like legal subsidy, free fire insurance or free property valuation to lure prospective home owners to refinance with them. To check if you can benefit from the refinancing package offered, you need to make sure you have great savings on interest charged. You also need to make sure to take note any hidden costs:
Example, for an outstanding loan of $3ook, the legal subsidy will usually be 0.4% of loan capped at $2,000. Hence, the actual subsidy will only be $1,200. However, standard legal charges averages $2,000. In this case, you will need to fork out $800 cash from your own pocket before you can enjoy any savings.
Besides the tangibles, make sure you take note of the intangibles such as the time and inconvenience for the refinancing process. Sometimes, the process might take up to 3 months to complete!
Happy shopping for your best deals!
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