Apr
4
Refinance Loan
April 4, 2008 | |
Refinance loan is taken up when the borrower already has an existing mortgage loan on his property and wishes to take up another loan on the same property. Refinance loan helps the borrower to pay off his first mortgage loan and start a new loan on the same property.
Refinance loan is taken up due to various reasons. If the borrower is not satisfied with the existing loan he may apply for a refinance. It may happen that when the borrower took up the first loan he had a huge rate of interest, thus he wishes to change the loan with a lower rate of interest. Sometimes the borrower may require changing the tenure of the loan. He may increase as well as decrease the tenure of the loan according to his suitability