Credit refinancing means taking out a new loan to repay old liabilities with the aim of pooling credits, improving the conditions on existing loans, reducing the monthly burden, and so on.
The option is up-to-date in case the client needs additional funds and then the offer is a new larger loan with the old or the *substantial change in the price characteristics of the loans.
*The second case concerns a change in market interest rates, in which case the Bank applies lower interest rates to new customers, but for existing ones it keeps old interest rates.
When it’s time to look at a refinancing agreement for a property, not everyone ends up being a winner. Homeowners who are less savvy about mortgage refinancing and money management may end up getting the short end of the stick. Here are some of the worst pieces of advice that you may hear along the way, and how to avoid it.
Watch out and keep your eyes open, there a many bad advises that you will you hear from most of the banks:
- Revert to a 25-Year Mortgage
- Refinance Quickly and Often
- Ignore early payment Options
- Just Sign It – They’re All the Same
Need a professional advice?
We at ZonaCredit consult our clients on refinancing products on all types of loans, Mortgage, Consumer and Corporate by looking for the most profitable offers for our clients and carefully reading and explaining the the lowercase letters in the text.