Important Note You Should Read Before Refinancing A Home Loan?

In case, your CIBIL score isn’t up to the desired mark, but all the other factors are in your favour, the lender might consider offering you the loan, albeit at a comparatively higher interest rate. Debt-to-Income Ratio To avoid this hindrance, you should try paying off all other loans with the exception of your Home Loan before applying for a refinance facility. Cost You’ll Incur When it comes to Home Loan refinancing, not only does your existing bank charges a foreclosure fee, but you also need to pay the processing fee to your new bank. The prospect of getting a new client is sure to incentivise even the banks with the Best Home Loan offers to provide you with additional discounted rates. Tax Implications When you get your loan refinanced with a new lender and start paying lower interest, then your overall outgo towards the interest component in a given financial year subsequently reduces. Considering that you are already servicing a Home Loan, we consider it safe to assume that you know the difference between a fixed-rate Home Loan and a floating rate Home Loan. Customer Support This is essentially one of the most overlooked aspects. That being said, a Home Loan refinance can prove to be immensely beneficial for you, especially if you are in the initial phase of your loan repayment, as it might help you save a large chunk of money over your tenure.

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