A Guide to Housing Loan Refinancing (Infographic)
The concept of Refinancing is not really known to many Filipinos. The Bangko Sentral ng Pilipinas from it’s survey from 2009 stated that almost 70% of Filipinos own their homes. Meanwhile, one of six only have other investments in form of real property. Not a lot.
Home Loan Refinancing is the process of paying off your current debt with a new one. This means that you are going to borrow new money given that the current interest rate is lower compared to your availed interest rate. This included, the collateral you used previously can be used again.
You can only refinance if the cost of your previous loan is much more than the administrative fees of refinancing it. To know more, here is an infographic that iMoney Philippines has made for you to understand the concept better.
The economy of the Philippines is on a topsy-turvy ride for the last five years. In 2008 and 2009 it is experiencing a recession, businesses were closing and a lot more are suffering by losing jobs and for our recent graduates, being unemployed. Although we are not that greatly hit by the recession, according to most economists, a dent on the economy of the third world has more impact than more powerful nations.