Easier Refinancing KL Selangor

Time is changing and so does your method to obtain some cash advance, whether it is via a personal loan, business loan or refinancing. However, with refinancing, it is the easiest way to obtain cash, because there is a collateral on the loan you receive, thus the amount and the terms tend to be more favourable. To refinance is actually to replace the current loan with the new loan which comes with better loan terms. But this doesn’t mean your debt easily goes away, it is just being moved to another loan. In short, the process of refinancing is defined as swapping out loans, moving debt to different loan or lender.

Process of Refinancing

 

The simplified process is that you have an existing loan then you apply for the new loan and use it to pay off the current loan so you are now left with the new loan. There are actually two types of refinancing that people normally acquire or do:

  1. Cash out refinancing – this involves in exchanging your existing loan to the new ones in other to get cold hard cash. This type of refinancing easily helps the home owner to tap into their home equity, which is the value of the property less than any existing mortgages.
  2. Rate and term refinancing – the rate and term refinancing is just basically the act of trading your old mortgage to the new one without even raising the loan amount. This refinancing method will actually result in shorter-term mortgage and lower interest rate so it can be paid off faster with less interest rate.

Why people refinance

There are a lot of reasons why people these days apply for refinancing. Some of them apply refinancing due to the furthering of their children or themselves or could be the arising medical need for those who are in need of medical checkup almost every week. Some of them might also apply for refinancing because of the new business opportunity that they found out or just to plan for a new investment opportunity. There are also chances that they are trying to pay off their credit card debts and get cleared off from that.

These days it is more difficult for them to apply the refinancing due to the strict Bank Negara Malaysia ruling that put some restrictions to them on personal household debts where refinancing is only allowed at least for 10 years only.

How to overcome

However if you want to overcome this strict requirement then through bank overdraft you might be able to get past this rule. Through overdraft you are actually paying the bank the interest on the amount by which you withdrawn your account. You will be able to borrow through bank overdraft at the certain amount limit which normally at the set rate of interest.

Alternatively you can always have another option where you can opt for the private licensed money lenders like us which would serve as the temporary solution in order to clear off all the unfavorable records of your credit cards before you are able to proceed to apply for the commercial banks. Where you may have difficulty in getting your refinancing application being approved, our rates of approval are definitely much higher than commercial banks. Do check out our services by calling us.

Conclusion

Therefore, if you are in urgent need of cash, and you have a property which is either fully paid, or substantially paid off, you can consider using that property to obtain some cash out. However, refinancing through commercial bank may encounter some strict issue. Hence you can always consider licensed money lender for such short turnaround cash to overcome short term financial distress.

You may also be interested in other financing options such as Housing Loan.