A Home Loan is a loan taken to acquire a house property. The lender secures the loan by marking a lien on the house or property purchased with the loan. Typically, banks would fund to the extent of 80% of the registered value of the property. The loan may be at a fixed rate or at a variable interest rate or a combination of both.
Recommended: loan refinance or Balance Transfers (BT)
Loan refinancing refers to the process of taking out a new loan to pay off one or more outstanding loans. Borrowers usually refinance in order to receive lower interest rates or to otherwise reduce their repayment amount. For debtors struggling to pay off their loans, refinancing can also be used to get a longer-term loan with lower monthly payments. In these cases, the total amount paid will increase, as interest will have to be paid for a longer period of time.
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