I have created a mortgage refinance calculator that will help you to find out how much interest you can save if you refinance your housing loan.
Click here to calculate.
Refinancing a housing loan provides some significant benefits to many owners. With the lower interest rate, owners are able to reduce their monthly mortgage payments. It will results in significant savings over the loan term.
There’re a lot of reasons for you to refinance your home loan. Most of the people do refinancing is to reduce their monthly repayments; some might want to consolidate their outstanding balance; and some just want to quit from the current mortgage that’s costing them too much.
One of the reasons that I like the most is to save money. It can be achieved by:
- Getting a lower interest rate to reduce the monthly mortgage payment. It can increase your cash flow, so you will have more money available to do other things.
- Cash out money for debt consolidating, house renovation or child education. Besides that, the money also can be used for investment purpose as the housing loan interest rates lower than personal loans or credit card cash advances.
For retirees, it is best to live with cash. Wherever possible, try to pay with cash. Normally, a loan is taken to finance something that you cannot afford. So, for the retirees who do not have a steady income should avoid this kind of situation.
Sometimes, unforeseen events or emergencies may compel you to borrow. For example, an offspring may encounter financial problems and most of the parent may find it difficult to support. Or may be you start a business or invest in properties. It’s not surprising to find them applying for business or personal loans to finance their desire path. Apart from that, they might need to get housing loans from bank if they are quite active in the property market which encourages them perform buy and sell.
Most of the retiree nowadays will take loans to buy new cars or refinance their homes. Some of them may prefer to get a loan when purchasing big ticket items although they can afford them. This is because they think that they will be audited by the Lembaga Hasil Dalam Negeri (LHDN) if the items are paid in cash.
Generally, financial institutions deny loans to those who are not earning an income. Here are few tips to increase your chances of getting a loan before retirement age: