Well, maybe „exotic currency” credits, in Swiss francs, or yen could be a new beginning for mortgage refinancing. There are banks which have started promotion for mortgage in Swiss francs, with extremely low rates of interest. What is this? Is it an opportunity for mortgage refinancing in other currency, with higher interest? Maybe! For the moment many banks promote as main opportunity the higher sum which can be offered as credit. It’s not a possible mortgage refinancing; it’s not a lower rate at the same credit level. You can purchase a bigger house, a more expensive furniture etc. However you are not assured by anybody that the chances to get rid of debts decrease. It is up to any person’s capacity to manage from the financial point of view his / her budget or the family budget. If for the person who receives mortgage should be important to have short time debts and exactly the sum of money needed, for the bank it is important that the period and the sum of money should be as high as possible.
It is a financial fight. Most of the times the bank wins, it is better trained from the financial knowledge point of view.
Don’t forget, mortgage refinancing must be performed only when advantages are obvious, and in general a mortgage refinancing action concerning low and expensive credits instead of a cheaper and higher one and over a longer period of time is not efficient from the economic point of view except it is associated with an improved financial discipline, which means first of all expenses decrease!
People who concluded savings and credit contracts with home mortgage banks can use loans for mortgage refinancing or the coverage of other foreclosure loans.
There are banks which offer home mortgage as products destined to the improvement of the locative situation. The product philosophy is based on combining a savings phase with a crediting one. Customers can benefit from credits with interest of 6% per year, added to commissions during the savings period, apart from an interest offered by the bank, which is 3% per year and customers can as well benefit from a premium of 15% per year.
In order to benefit from a home mortgage, the customer must save during the first phase a sum of money for at least 18 months and during the second period he will obtain a credit in national currency with fixed interest of 6 % per year.
In parallel, a home mortgage bank can offer its customers who need a faster mortgage refinancing an intermediary credit. During the intermediary credit the interest rate can be 7.5% per year and it is fixed. After the customer keeps saving for at least 18 months and he meets the conditions imposed by the bank, the mortgage changes into home one, with an interest of 6% per year, which can be the same during the reimbursement period.
This is only an example of mortgage refinancing, but it can be adapted according to personal situations if you require specific information from professionals.
Tags: Mortgage Refinancing