The best place to get a home refinance loan is a cheap and best way to use your home for cash that can be used for investment or other purposes. Home refinance loan is the process of customers requesting additional funds (top-up).
This request uses the mortgage collateral that is still running (not yet paid off). The purpose of refinancing is to get cash quickly and easily from loan collateral. That is why many people use this loan refinancing.
Why We Have to Choose Home Refinancing Loan
First, the refinancing process is relatively easier and faster than applying for new loans. Maybe because the bank already knows the previous loan track records. Second, mortgage refinancing interest is cheaper than taking, for example, multipurpose credit or KTA. Because it continues the existing home refinance loan.
Third, with refinancing, you don’t need to transfer collateral to the bank. Transferring collateral to another bank requires a difficult process because the loan must be repaid first (you need a bailout) so that the guarantee document can be retrieved.
Fourth, the tenor of the refinancing loan can be long, at least 10 to 20 years. In contrast to cash KTA with a maximum tenor of 3 years or 5 years, which makes the KTA ceiling unable to be large and the monthly installments are quite high.
It’s important in applying to refinance loan from the best place to get a home refinance loan. The first thing that the bank will see is your payment record at the bank. A good payment record gave the bank the confidence to refinance the mortgage to you.
Therefore, you must have a good payment record if you want to apply for mortgage refinancing at a later date. Don’t be late making payments too often. That will make the bank hesitant to make further loans.
Initial Steps for Finding the Best Place to Get a Home Refinance Loan
First, contact the bank. At the earliest, I contacted marketing who used to take care of my mortgage loan. I am suggesting that I plan to apply for a new loan, top-up, with the collateral for a house that is currently still in the loan.
The marketing said that your application could be submitted but before that, he needed to see the status of my mortgage loan. After checking, the status of your KPR loan was clean, never in arrears. One step closer to the best place to get a home refinance loan.
Banks usually will not approve mortgage refinancing if the customer has a bad credit record, for example, often in arrears. Therefore, it is important to understand that maintaining a good track record of payments is very important.
The second one is the home appraisal. In the next step, the bank requests permission to conduct an appraisal of the value of land and buildings that become collateral for the KPR. The officer from the best place to get a home refinance loan will come to visit my house.
The essence of mortgage refinancing is in this home appraisal. If the appraisal result is found that the value of your house is stagnant, not increasing, or even decreasing, you will not be able to refinance, the value of the new loan provided by the bank is small.
The thing that needs to be considered is what is the maximum cash top-up value that the bank can provide. To determine this value, there are special calculations. The current market value of the collateral is based on the appraisal results.
The principal value of current mortgage loans. The maximum total loan amount is 70% to 80% of the collateral value. Refinancing Top Up is the maximum total loan minus the current loan principal. It’s how to find the best place to get a home refinance loan.
Important Things You Need to Prepare for Home Refinance Loan
Delivering the latest income documents and checking the certificate of guarantee. After the appraisal is carried out, the bank asks for the latest income documents. The bank will also contact the workplace to ensure that the debtor is still working.
All information related to debtors is updated according to the latest conditions. Also, the bank will ask the notary to double-check the certificate at the BPN. The bank checks the certificate to ensure that the certificate has not been guaranteed to another institution.
It’s a bit surprising because the certificate has been held by the bank since the first home refinance loan was granted. If something happens with the certificate it should come from the bank. Then you should choose the best place to get a home refinance loan.
When I asked the bank about this, the bank said that this was the bank’s prudent step to ensure that the certificate was still valid and had not been guaranteed to another party when the top-up loan was given.
Determination of Top up Refinancing Value by Banks and Issuance of Home Refinancing Loan
After all the processes are complete, the bank provides information on the total amount of top-up loans that can be given. The bank then asked how many years the new loan would be taken. The bank stipulates that the maximum age is the retirement age.
It could be 55 years or 60 years, depending on the office where the debtor works. After determining the tenor of the KPR refinancing loan, the monthly installments for the refinancing loan are calculated. These new installments are combined with the current installments to determine the total monthly installments.
The bank has a policy of 30% income per month which is the maximum for debt repayment payments (including mortgages and other debt). If it is above 30%, the bank asks that the installments be lowered. There are several ways to reduce installments.
First, you can decrease the loan refinancing ceiling. Second, you can extend the loan tenor. And last, you can ask the bank for discounted interest. And another way, you can consult with the best place to get a home refinance loan directly.
The final step is the signing of the home refinancing loan agreement. This is the step before loan disbursement. The contract signing is done in front of the notary and the debtor where the spouse (husband or wife) must be present.
This is for you who do not have a separation agreement. After the contract process is complete, the bank will disburse the loan to your account. It will be done after the contract assignment. It’s a really easy procedure from the best place to get a home refinance loan.