Check the conditions of the main banks and financials to refinance property.
Refinancing a property can be a good solution.
The decision to make such a loan should be taken very carefully, because you risk losing your home if you are unable to repay the installments or cannot renegotiate with the bank to repay the debt.
What is Property Refinancing?
Home refinancing is the process of applying for a loan using a commercial or residential property you own as collateral. Just be with the property in your name, with documentation on time and paid off.
With the property securing the loan, banks and lenders release credit even if the person’s name is negated. Advantages include lower interest rates over other types of loans, such as personal loans, and longer repayment periods of 5 to 15 years.
The amount of credit released is also usually quite high, usually the minimum is USD 50,000 and can reach up to 60% of the value of the property.
How and where to Refinance Property?
The bank offer this type of loan, but only to account holders. If you have an account with any of these banks, consult with your manager and do credit analysis to get refinancing.
Smaller and financial banks also often offer property refinancing and provide specialized customer service. In this case, the user is served by those who work directly with this type of loan and the approval process is more agile.
Most banks and financiers agree to refinance, either with commercial or residential real estate. Generally, companies only do a credit analysis and a property appraisal. Depending on the outcome, the credit released, the interest rates and the payment term are determined.
Generally, companies request at least a property of USD 100,000 to release credit USD 50,000, minimum value. This amount, depending on the institution, can reach up to 60% of the property’s appraisal value.
When Do I Need to Refinance Property?
This loan model is very attractive because of the reasons stated above. There are some situations in which this model is indicated to get credit.
Swap expensive debt for cheaper debt
For those with a very large debt, refinancing can be a good one. Due to a good amount of credit released on refinancing, it is possible to repay this giant debt, taking this loan which has lower interest and longer repayment terms.
Credit for your company
Another case that makes refinancing an interesting option is to get credit for your company. It can be used by entrepreneurs as working capital or for investments in their business.
Users also often opt for this loan model for urgent renovations or extensions. A good retirement is usually expensive and you can afford it through a home refinance, which will give you a long repayment term and a low monthly interest rate compared to other types of loans.