Why you should refinance your mortgage to save on interest – There are many reasons to monitor your interest rates when you make any form of investments. Property investments is one of the most common types of investments that people take up on a day to day basis. This is also one of the highest quantum investments that anyone will be taking up.
For that to make good money, you should find a property that has a good location and also a good price, so that you can make good gains on the property investment itself.
When you are doing this, you also need to realize one of the biggest expenses is your interest.
During good times, interest rates are rather high and this means that you are paying more interest to own a property and this add up to the true cost of ownership.
When times are bad, the central bank will usually reduce the rates that the interest will float at and this affects everything from savings to your interest rates for your property.
This means if you are facing a recession in Singapore and you are not getting a lower interest for your property, you are definitely losing out.
The rates will fall and if you do a lock in period of 3 to 5 years you can save tens of thousands on a [property loan.
This means you can have more cash to buy another property that you fancy and you will be able to get more funds for paying down the property as well.
You should consider refinancing your mortgage or getting a new home loan during a bad economic situation and enjoy the savings.
Why you should refinance your mortgage to save on interest