Words like this often sound difficult and complicated but this one's actually not. I recently refinanced my daughter's student loan quite smoothly. Refinancing of a loan simply means the process of taking a new loan from a different lender to pay off the debts of an existing loan(s). It is a good idea to refinance a loan since it lowers the interest rate on the existing loan. If the interest rate lowers even by 2%, consider yourself to be on the right path. It can also reduce your monthly loan payments (usually by extending the loan term) and consolidate other loans into a single loan. Often mortgage loans, home loans, car loans, and student loans are considered for refinancing. It can help cut the cost of a loan by thousands of rupees. However, before you plan to refinance your loan, make sure you go through your loan agreement and specifications to see how much you are currently paying and check for if there is any prepayment penalty because in some cases, early termination cost can outsize the refinancing value.
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What does refinancing a loan mean
Aryamann Kothari
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5 Year
2020-12-06T21:29:53+00:00 2020-12-06T21:29:53+00:00Comment
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