A homeowner needs to pay more if the interest of the home loan is higher. Therefore, the only option remains is, refinancing. Simply put, refinancing is the process through which the monthly repayment can be reduced by switching to a lower interest rate.
Here’s what you should you know about refinancing
With the option of refinancing, homeowners achieve the opportunity to switch his/her home loan to another bank for the sake of a lower interest rate. This helps in saving a significant amount of money in the long run. This option is applicable when your home loan hits the 4th year phase or more.
This is because; usually home loan’s interest rates are increased after the timespan of 3 years. Therefore, refinancing is the best option to find a suitable bank that offers a lower interest rate.
Also, refinancing your home loan is also a great consideration when changes are made in SOR and SIBOR rates. These types of interest rates change as they are based on changes in global economy. Well, the applicability of refinancing must be consulted with a professional who offers fast track mortgage for your home loans.
When should you look for refinancing options?
Well, technically the option of refinancing is always open for homeowners but in most cases, and as per the banking experts, it is recommended after the lock-in-period is over. If you try to do this before the lock-in-period, a penalty fee of 1.5% of the outstanding amount will be charged. Refinancing contracts that are newly signed have a validation period of 6 months.
Therefore, considering the rising interest rate of our economy, a homeowner usually wants to achieve a good and handsome package of home loans as early as possible. In addition, bear in mind that at least 3 months of notice is required before starting with the refinancing process.
However, if you want to stay away from all these hassles, consider downloading a good loan tracker app. It will keep you updated on the deadlines so that the loan can be closed as quickly as possible.
The cost of refinancing
There are different factors to consider when it comes to refinancing. These include valuation fees, legal fees and prepayment penalties. Well, all these are applicable only during the lock-in-period. However, depending on some circumstances, the costs can be subsidized by the bank.
If the amount of the loan is quite big enough, the bank may choose to defray the legal fees along with the subsidies. This is usually done for an outstanding amount that is more than $500, 000. A loan tracker mobile application can mean a lot to homeowners especially when they are paying more than the usual interest rate.
The importance of file tracking option
Hot Foot offers a complete hassle-free solution through a seamless loan tracking system. They bestow a matchless platform which is more than just a mere mobile application. The application lets you track the files so that you can focus more on business while receiving automatic notifications of the deadlines through e-mails.
Loan tracking is the key component of CMS or Compliance Management System, a best-practice program intended to help you be on the right track of Fair Lending regulation.
Thanks to technology, today, you can use Loan tracker app to gain control over each debtor and their loan status.
It saves your time that can be utilized on getting more business.There are less chances of error as the systems take care of everything – from loan calculations to sending you email notifications on deadlines.Some loan tracker apps also give the benefit to the debtor to track their loan status so that they can make the payment on time and avoid being penalized.Many businesses have offered loan tracking applications to their customers for this reason.Industries that can benefit from loan tracking systemSmall and mid size enterprise : Working capital Loan, Business loan, Loan against property, Machinery loans and Purchase of Commercial VehicleRetail : Customer durable loans, Consumer vehicle Loan, Personal Loan, Mortgage loan, Education loan, Gold loan, Women empowerment loans and Loan to tradersGroup Lending : Loans for Income Generation, Micro-finance, Utility Loans and Home Improvement loansPeer to Peer Lending : Short Term LoansIndividual Lending : House Repair and pay day loansSome of the key features of a loan tracker appAny typical loan tracking system or app recently developed by expert developers will have these key features: Responsive designThe responsive design gives better engagement and flexibility to use for different industries and work scenarios.
Loan status checkAlthough, this is not a feature and rather a function, but with this kind of apps the business can view or track the status of a loan, file stage, and which debt cases are to be handled first.
Dashboard ViewLike most of the apps, a loan tracker app also enables dashboard viewso that companies can understand where they stand and what needs to be done to close the loans faster.
Mobile adaptableThe responsive layout and cell phone compatibility makes this your go-to app.
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