Taking Up Refinance can be a great way to save. Most banks will lower your APR if you are willing to change the loan terms. This means being willing to pay some closing costs and other fees. If you have only been paying for two years, interest rates may have dropped significantly in that time, and it probably does make sense to refinance mortgage loan Singapore.
Factors that influence the cost of Mortgage Loan refinancing
One of the main factors that influence the cost of Mortgage Loan Refinance is the rate of interest. The rate of interest is determined by several factors like the type of loan you choose, the length of your loan, and your credit score. There are two types of loans – fixed-rate mortgages (FRM) and adjustable-rate mortgages (ARM). With FRM, the interest rate remains fixed throughout the loan’s life span, while with ARM, the interest rates fluctuate depending on market conditions and other factors.
Another significant factor influencing refinance mortgage loan singapore costs is your credit score. Your credit score can be obtained from three credit bureaus for a small fee. You will have to furnish some details about yourself to get your credit score. This information includes your social security number, age, gender, and residential status. Once you submit this information, you will get a copy of your credit report within a week or so.
Based on this information, lenders decide whether you are eligible for a mortgage to refinance and at what rate. If you have a bad credit history, securing a loan at a reasonable rate may be challenging. The best thing to do in such circumstances is to try and improve your credit score before applying for a mortgage refinance.