Fincrew Home Loan Refinance Calculator
If you’re having trouble with your current home loan terms, a home refinances loan is one of the best options you can explore. Even though refinancing your existing mortgages is a good idea, it only works if you can get a home loan to refinance with elements like a lower interest rate, smaller closing costs, and better terms and conditions than your current loan. How do you make sure you find such a refinance housing loan quickly and efficiently? By using our home loan refinance calculator!
With this financial tool, you can more accurately determine that refinancing the home loan you’re about to take is worth it. The FinCrew home loan refinance calculator helps you better assess your current situation and weigh it against the terms of the new loan you’re about to get. That way, you’ll be able to see more clearly the benefits and drawbacks of the products and services you’re about to take. Our tool also makes it easier for you to achieve your financial goals, whether that’s
- Reducing your monthly payments.
- Readjusting your loan terms.
- Halting products and services like your mortgage insurance.
- Reducing the current interest rate.
- Updating your loan program.
How The FinCrew Home Loan Refinance Calculator Works
To help you accurately determine whether processing mortgage refinancing is in your best interests, our home loan refinance calculator needs you to fill specific data into the required input fields. Some of the information required includes:
- Your current loan amount.
- Your current interest rate.
- Your current loan term.
- The origination year of your existing loan.
- Size of the new loan amount.
- Scope of the new interest rate.
- Length of the new loan term.
- The total refinances fees.
By evaluating the principal and interest of your existing mortgages against the new loan you’re about to take, this home loan refinance calculator will help you know whether or not you should go ahead with your plans.
Home Equity Refinancing – Everything You Should Know
In basic terms, refinancing your home loan involves replacing existing mortgages with new loans with more accommodating terms and conditions. The funds from the new loan go towards clearing the previous loan promptly so that you can repay your new mortgage loan more comfortably. In theory, you can refinance your original home equity loan as often as possible. However, due to some reasons, certain banks and financial institutions in Malaysia may put a cap on how many times you can secure a new home loan refinancing service.
Costs To Get a Home Refinance Loan In Malaysia
The value of these products and services varies depending on several factors. However, on average, the closing costs for a home refinance loan in the country is usually between 2 to 6% of the initial loan amount. The significant factors that influence this value include the Credit Score of the mortgage lender, your location, the type of loan (for example, Cash Out Refinance or Adjustable Rate Mortgage), and the loan size. Getting the best out of any refinance home loan in Malaysia helps to know what you want from the beginning. That way, you’ll be able better to negotiate the most profitable terms with your lender. Having a fast and reliable refinance calculator like our tool is indispensable.
Common Mortgage And Home Equity Refinance Costs
Mortgage refinancing goes beyond just the basic principal and interest concept. There are several other fees and levies you have to take into consideration as well. Some of the most important ones are:
The Mortgage Application Charge
Depending on which financial institution you approach, you may accrue a 1% charge of the total loan amount for processing your request. This fee stands whether or not your loan request is eventually approved.
The Home Appraisal Fee
So that they can better estimate the changes in the value of your property and determine whether you have sufficient equity for a successful application, many lenders in Malaysia will carry out a home appraisal. It can cost a few hundred to several thousand ringgit.
The Mortgage Loan Origination Fee
The value of this fee is entirely dependent on your lender. It is simply a form of compensation for providing you with the loan refinancing service. Some lenders may choose to forgo it altogether, while others will charge as much as 2% of the total loan amount as their origination fee.
The Document Preparation Fee
Certain documents that detail the essential terms of the credit your lender is about to extend need to be provided by law. The expenses for this preparation will fall on you as the borrower. This fee usually doesn’t exceed more than a few hundred ringgit. Beyond the charges mentioned above, other levies you can expect, depending on the protocol of your lender, are survey fees and inspection fees, to mention a few. Due to all of the above, you can’t just rush into securing a home refinance loan. You need to carefully factor all the charges above (when they apply) into your equation and then make a more informed decision. Otherwise, mortgaging refinancing in Malaysia may not work in your favor.
Best Reasons To Get a Refinance Housing Loan
While there are several reasons a homeowner may want to get a refinance home loan in Malaysia, some of the foremost ones are;
- To get a lower interest rate.
- Change their interest rate type from variable interest to fixed interest or vice versa.
- To eliminate mortgage insurance.
- To help pay off their home loan faster.
- To reduce their monthly payments.
When paying off your housing loan, don’t forget that you have to deal with other expenses like insurance, credit cards, and additional costs. So, you have to be extra careful.