There are many assumptions in the minds of people about refinancing loans, some of which are true. People are asking a number of questions about this refinancing, they are not quite sure of the answers they get, they are losing refinancing as such.
Let us mention the most common assumptions and let us know whether this is a fact or is just a dust-free myth that someone once put in our heads.
If I reduce the monthly installments, will the loan repayment period be extended?
A common question people ask about refinancing loans is whether the loan repayment period will not be extended due to the reduction in monthly payments. The answer is no, in the case of refinancing, the interest rate is reduced, the repayment period cannot be set. Thanks to refinancing, you can even shorten the loan repayment period by up to several years, saving even several thousand crowns, if not hundreds of thousands of crowns. Many times, millions have been saved through refinancing.
Is it possible to refinance all loans?
Many people believe that it is possible to refinance all types of loans. On the other hand, there are people who claim that only a mortgage can be refinanced. Where is the truth? The truth is that by law it is possible to refinance all types of consumer loans. But there may be a problem with refinancing loans that are for mortgaged property.
I cannot make mistakes when refinancing
This is a mistake many people grow in their heads. Of course, you can make mistakes when refinancing a loan, especially when you are not studying the conditions. You also need to compare interest rates, we need to inquire about any fees.
Do I have to prove my income when I refinance?
This is not always necessary. There are financial institutions and institutions where there is no need to prove your income and its amount. However, everything depends on the financial institutions mentioned and the conditions they impose.
To refinance a personal loan, see if you qualify for a new loan at a lower interest rate. Refinancing a personal loan means obtaining a new loan and using the funds to pay off an existing personal loan. This strategy can save you money if you qualify for a lower interest rate on the new loan.