Urgency of Refinance , The demand of Time
Why Refinance important?
What is Refinancing
Refinancing is the replacement of an existing finance with a finance under different terms and conditions.
If the replacement of debt happened for financial distress of a business or person or institution, it is also referred to as debt restructuring.
Now a days leaders of the richest countries have urged for refinancing. So, it is now demand of time.
A loan is refinanced for any of the following reasons:
- To take advantage of a better interest rate, in case of change of interest rate
- To consolidate other loans into one loan, for multiple finance
- To reduce the monthly repayment amount or installment, rescheduling
- To reduce or alter risk of finance
- To free up cash, etc.