What is home refinancing? Tips for paying off your home loan to get cheaper interest? Listen here.

Many salary people often hear the word "refinance" but believe that there are not many people who do not understand what it is. And if it's determined that it's a way to get home interest cheaper or not? These doubts will disappear. when knowing the true meaning of the word refinance Including how to manage home refinance systematically

What is a home refinance?

Refinancing a home means applying for a home loan with a new bank. to reduce the burden of existing loans Most of them aimed at lowering home interest rates. and help reduce the amount of monthly installments and Pay off your home loan faster, faster, for example. We borrow money to buy a house at 3 million baht. Once we can pay off the loan for the first 1-2 years, the interest will be there. But after that there will be more expensive floating interest problems. Causing us to pay back in time The solution is "refinancing the house" with the original bank or a new bank. which will have better installment terms With monthly installments being cheaper Extend the repayment period

*Remember , we will be able to refinance the house only after the contract with the first bank that applied for the home loan has expired. This usually sets the contract for a period of 3 years.

Refinancing the house must wait for 3 years, is it true?

Usually, what salaried people should consider before refinancing a home is that the contract for applying for a home loan with the original bank must have expired. Most of which are set at 3 years, but in the event that the borrower wants to refinance the house before the contract expires, it can be done. but must pay fees as specified by the bank and specified in the contract Therefore, it is best to carefully read the terms and conditions of the loan agreement.

Where is the best place to refinance your home?

Believe it or not, where is the good place to refinance? It is still a popular question of salaried people. because in addition to considering the details of the new home loan Still need to calculate the interest rate and conditions of each bank is important

So, first of all, the salaryman Must first understand that each person's factors are different. Whether it's a budget to buy a house comfort in service to home interest Which a good home refinance is, in addition to having to have a low interest rate home Promotion must also be considered. And the convenience of contacting various financial transactions as well, which each bank will have different criteria and related factors. as the table below

What are the factors involved in refinancing a home? 

When refinancing a real home, salaried people need to focus on two main things that affect that are “interest” and “repayment period”.

Interest

Important factor for borrowing no matter what kind of loan The interest for refinancing must be lower than before. to increase the value of refinancing Allowing salarymen to pay off their own homes smoothly.

Another important point that cannot be forgotten is that refinancing a home will sometimes result in us being able to adjust the interest model. from MRR (Minimum Retail Rate) or floating interest can be changed to a fixed interest rate This makes salaried people able to pay at a lower rate in the long run. Because this type of interest will not be affected if there is a change in other interest rates within the country.

Installment period

This is very important. because the refinance system will come in to help make salaried people able to extend the repayment period of the original debt for a longer time as well as making the installments that must be paid per month cheaper This makes the salaryman able to control the spending of money.

For people who want to calculate their own loans first Or perform a calculation in advance which bank we have to pay with, which can use Sansiri's loan calculator directly, which will support many banks, responding to all forms of home loan

Documents required to refinance a home

1. Personal identification documents

Copy of ID card

Copy of house registration

Copy of spouse's ID card (if any)

Copy of spouse's house registration (if any)

2. Financial documents

For people with regular income (with salary)

Salary slips for the past 3-6 months

work certificate

Copy of tax withholding certificate (50 bis)

For those who run their own businesses

Certified copy of trade registration

A copy of the list of shareholders

Copy of bank statements for the past 6 months

A copy of the sales tax form Phor Por 30

3. Home refinance collateral documents

A copy of the title deed title book or related documents indicating the collateral

A copy of the contract for buying and selling land, Tor. 13 or 14, or the contract for buying and selling condominiums

Copy of the loan agreement from the original bank

A copy of the mortgage contract

Copies of receipts showing home-related transactions.

*If there is a co-borrower or changing the last name Other relevant documents such as identity documents and name change certificates must also be prepared. And for anyone who borrows to buy a home for the first time can read more document details at home loan When preparing home loan documents

 How to refinance your home

 For salaried people, refinancing a home is very easy because they have a regular income. If all documents are ready, you can request action immediately. By way of refinancing the house, there are only 5 short things:

 Check out the original contract.

both contract details remaining installments Interest ratio and duration to make us confident that this refinancing will definitely be the right choice.

Choose a new bank

 It is based on two main factors: interest and repayment period. If calculated, it is more worthwhile than it really is. Prepare relevant documents.

 

Prepare documents

 The list of documents can be referenced from the preparation of the refinancing documents above.

Apply for a refinance with the desired bank.

which if the documents are ready All operations will be performed in no time.

Make a contract 

Without forgetting to look at the details of the new contract completely to prevent mistakes that may occur later

For salary people who are interested in having a house and condo without having to wait for a refinance Can finish consulting about financial problems at Sansiri Home Financial Planner or find special offers that can help control finances in this economic time as well. Sansiri has great promotions such as promotions for ready-to-move-in houses and townhomes. Many participated in the program, grab it before you miss the chance!