Refinancing a home is a very convenient way to save on interest on a loan, or reduce the term or amount of your mortgage.
To really benefit from the refinancing procedure, you need to make sure that you manage to reduce your interest rate by at least 1.5% while keeping your income level the same.
Since the procedure itself is a new transaction – the client will have to re-collect all the documents – an appraisal of the value of real estate, a copy of an insurance policy, a certificate of ownership, a statement of income, passport data, loan agreements, various certificates that the client does not have debts, etc.
If you want to use this service in the same bank, then it will be a restructuring, and the interest rate is unlikely to be lowered. It will be easy to change the interest rate in another bank, but calculate whether the game is worth the candle, since you will have to pay state fees, you may have to pay for transferring funds from another bank to take out new insurance. Before registering the collateral, banks set a higher percentage in order for the client to complete the transition faster.
If the client has paid more than 50% of the total amount, taking refinancing may be unprofitable, since the longer the loan is repaid, the more interest overpayment comes out.