Refinance Home Loan Malaysia

Posted by SCS Mortgage on March 14th, 2020

Refinancing of home loans are much easier today than it was earlier. When a person initially obtains a mortgage especially the first home buyers they get so excited that they are not able to see the whole picture clearly. And later on the burden of the monthly installments are so huge that they are not able to manage and end in foreclosure. This is a very common occurrence now-a-days and then the refinancing of home loan is the only way you can save your home from foreclosure which can be devastating to the credit rating. 

Refinancing home loans is the first and easiest option for many homeowners struggling with overwhelming mortgage payments. The most common reason for monthly payments to suddenly be out of reach is: refinance home loan malaysia

Adjustable Rate Mortgage (ARM) 

When interest rates were low and going lower, many homeowners opted for adjustable rate mortgages which followed the interest trends. This caused interest rates to reset and have an adverse effect when rates go up. Many homeowners start seeing their mortgage payment climb steadily and opt to switch to a traditional, fixed rate loan. 

In some cases, refinancing may be sought simply for benefits and not because the homeowner is in financial trouble. It's important to keep your eye on the big picture, and think about the long term - especially when it comes to making changes to your home loan.

Home Refinancing Options 

You can request a refinance that keeps everything on your loan the same except the interest rate. This will usually lower you monthly payments slightly and save you considerable money over the remaining term of the loan. This is a good all around option. maybank refinancing

You can request a refinance to avoid having to pay a balloon payment if you arranged a short term ARM. Refinancing can roll that amount back into the loan and get you a fixed rate. This is a good option if you are in a tight spot financially.

You can request a refinance that lowers your interest rate, but keeps your payments the same or a little higher - this allows you to pay off the principal faster and save you even more money. This is a good option if you're financially stable. 

If your credit rating has improved substantially since you bought your home, you can often qualify for a refinance at a lower interest rate. If you need cash, you can draw on the equity in your home - increasing the principal of the loan. Often this is accompanied by extending the term of the loan back to the original length.