+91 7304447444 Connect to our virtual assistant
YouGrowWeGrow
banner banner

Stay Up-to-Date with Our Blogs & Articles

The texts on this website have been translated using an automated translation tool and its accuracy cannot be guaranteed. We recommend referring to the English version of the content for the most precise information. In the event of any disputes or inconsistencies, the contents in the English language shall be considered final and binding. IIFL HFL disclaims any liability or responsibility in this matter.

Go Back to Main blog page

Top Reasons to Refinance Your Home Loan

By IIFL Home Loans | Published On Sep 14 2023 6:28 AM 1 min read 148 views 459 Likes
banner

Your home is not only a place of comfort but also a significant financial asset. As a homeowner, you might have heard about the term "refinancing," but do you truly understand what it means and how it can impact your financial well-being? Refinancing home loans can offer several compelling advantages that cater to a homeowner's financial needs and goals. 

What does Refinancing of Home Loans Mean?

Refinancing a home loan involves replacing your current mortgage with a new one, ideally with better terms and conditions. This process can be likened to giving your financial arrangement a fresh start. By refinancing, you essentially pay off your existing loan and secure a new loan with more favourable interest rates and repayment terms.

Caption: Consider home loan balance transfer for savings 

IIFL Home Loans offers a refinancing option through its balance transfer facility with competitive interest rates that can be more favourable to you than your existing loan. For more information, check out the official IIFL Home Loans website.

Now, on to the focus of our discussion here, which is to understand why you should refinance a home loan.

Key Reasons to Refinance Your Home Loan

Lower Interest Rates: Interest rates in the housing finance market can fluctuate. If you initially secured your mortgage when interest rates were higher and they have since dropped, refinance mortgage can reduce your monthly payments and overall interest costs.

Shorter Loan Tenure: Refinancing can enable you to choose a shorter loan tenure. While this might increase your monthly payments, it can help you pay off your mortgage faster and save on overall interest costs. 

Switching Lenders: If you're dissatisfied with your current lender's customer service or terms, refinancing gives you the opportunity to switch to a more favourable lender. Not only does this move ensure better service but also helps maximise your savings.

Top-up Facility: It enables you to access additional funds based on the equity you've built in your property. By refinancing with a top-up loan, you can address financial needs like home improvements, education expenses, or debt consolidation without the hassle of applying for a separate loan.

Enjoy instant loan approvals and top ups

Economic Changes: Changes in the overall economic landscape, including shifts in the Reserve Bank of India's policy rates, can influence the interest rates offered by lenders. If you anticipate rising rates and seek stability, a fixed rate might suit you; whereas, if you expect rates to drop or prefer initial savings with possible fluctuations, a floating rate could be more appealing.

Summing Up

Refinancing your home loan can be a strategic move to improve your financial situation and achieve your goals faster. By understanding the process, comparing offers, and analysing the potential benefits, you can make an informed decision that aligns with your financial aspirations. Remember, your home is not just a place to live but also a valuable tool for securing your financial future. Refinancing might just be the key to unlocking its full potential. Visit the IIFL Home Loans website for the best home loans and refinancing deals!

FAQs

1. What do the best home loan and refinancing deals offer?

  • Lower Interest Rates 

  • Reduced Monthly Payments

  • Shorter Loan Terms

  • Switching Loan Types

2. What is the correlation between home loan interest rates and refinancing?

Home loan refinancerates play a pivotal role in the decision to refinance. When interestrates drop even by a small margin, it can result in substantial savings over the tenure of the loan.

Keep an eye on economic trends and interest rate forecasts. If rates are expected to rise, you might want to refinance sooner rather than later to secure favourable home loan refinance rates.

3. How to refinance home loans?

  • Research lenders and their terms.

  • See if you fit their eligibility criteria.

  • Gather the required documents.

  • Submit your application and await approval.

4. What is a home loan balance transfer? 

IIFL Home Loans' balance transfer facility allows homeowners to shift their existing home loan from another financial institution to IIFL Home Loans at more competitive interest rates and favourable terms, potentially resulting in reduced monthly payments and overall interest costs.

5. How to qualify for the best home loans and refinancing deals?

You'll generally need a strong credit score, a stable income, and a favourable debt-to-income ratio. Lenders often offer their best deals to borrowers who present low risk and demonstrate the ability to repay the loan. Check out IIFL Home Loans’ eligibility criteria for a balance transfer to see if you are a match.

Tags

apply loan

Quick and Hassle Free Loan Processing

green ad
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report

Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.