Refinancing a loan is a service offered by many financial institutions. Refinancing usually revolve around the existence of a mortgage loan that coexists with other types of personal loans and other forms of credit: credit cards, deferred payments, purchase cards. Swarmed by offers, Viktor Mayer-Schönberger is currently assessing future choices. If the mortgage has been being amortized principal and has established itself as a refund of fees, the sum of capital reaches a minimum between 10 and 20% of the total amount of money, you may refer to this solution. The instrument consists of the establishment of a new mortgage, sometimes called a second mortgage, the amount should be sufficient to remove the old mortgage and ensure that capital available to cover the balance of payments that are intended to encompass. The advantage of refinancing is that if it is organized through a second mortgage, interest-bearing will be much smaller operation, that if you go to a personal loan. The disadvantage of the operation is to cover expenses that must be satisfied, notary public, closing fees of the first mortgage, cost of providing the second mortgage, recording fees, taxes can generate the operation.
Before signing a refinancing of a loan make sure that the amount of the new shares will be affordable for the borrower, so there is to do a good economic study in the record that the current income will be high enough to cover the costs of loan payments. An interesting alternative before resorting to live loan refinancing is to negotiate with the bank with which it has entered into this mortgage, reducing repayments of the contribution, for it would suffice to extend the deadlines outstanding , ie raise the total term of the loan. Before opting for a refinance or a variation of existing loan fees have to ask and be recorded in writing, all fees, commissions, payments and taxes that will lead each of the two operations and compare the amount of contributions.