{"id":847,"date":"2020-05-31T16:10:13","date_gmt":"2020-05-31T16:10:13","guid":{"rendered":"https:\/\/www.cashvisory.com\/blog\/?p=847"},"modified":"2020-07-09T08:32:01","modified_gmt":"2020-07-09T08:32:01","slug":"refinancing-your-loans-why-it-matters","status":"publish","type":"post","link":"https:\/\/www.cashvisory.com\/blog\/refinancing-your-loans-why-it-matters\/","title":{"rendered":"Refinancing your loans: Why it matters"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"847\" class=\"elementor elementor-847\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3baf749 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3baf749\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5e6ac90\" data-id=\"5e6ac90\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-50e4626 elementor-widget elementor-widget-text-editor\" data-id=\"50e4626\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">In this ever dynamic world, change is the only constant. That is just as applicable to the financial world, even more so in modern times. From changes in interest rates, fluctuations in asset values, volatility in business profitability, the macro and micro economic environment is constantly changing. But it\u2019s not always a bad thing &#8211; you can actually stand to benefit from these changes. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-670ae8d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"670ae8d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-19d3705\" data-id=\"19d3705\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c68cd57 elementor-widget elementor-widget-text-editor\" data-id=\"c68cd57\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">One of the key tools at your disposal to leverage the market changes to your financial benefit is refinancing. Imagine, a home loan taken 5 years ago would be at the then prevailing interest rate (assuming it is a <\/span><a href=\"https:\/\/www.investopedia.com\/terms\/f\/fixedinterestrate.asp\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">fixed rate<\/span><\/a><span style=\"font-weight: 400;\"> loan) and be appropriate for our cash flow and assets back then. Refinancing, if done right, helps to leverage changes in our finances or interest rates positively to help save money and time.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-538448e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"538448e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-45bfa6f\" data-id=\"45bfa6f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-57e5708 elementor-widget elementor-widget-heading\" data-id=\"57e5708\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is refinancing?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4c95af2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4c95af2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4c808f8\" data-id=\"4c808f8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6bedc8d elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"6bedc8d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Refinancing means, replacing your old loan with a new loan. This new loan amount pays off the outstanding amount of the old loan. People generally consider refinancing for the following purposes:<\/span><\/p><ul><li>Leverage on lower interest rates<\/li><li>Reduce loan tenure<\/li><li>Change loan type<\/li><li>Consolidate debt<\/li><\/ul><p>The intent of the exercise is to improve the overall terms of the loan and benefit from interest cost saved. Let us see how each of the above factors can be used for refinancing.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d4501b0 elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"d4501b0\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"451\" height=\"331\" src=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/Loans.png\" class=\"attachment-large size-large wp-image-849\" alt=\"refinancing loan\" srcset=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/Loans.png 451w, https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/Loans-300x220.png 300w\" sizes=\"(max-width: 451px) 100vw, 451px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-dbfc286 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"dbfc286\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d207d8c\" data-id=\"d207d8c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0bb8660 elementor-widget elementor-widget-heading\" data-id=\"0bb8660\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Benefits of refinancing<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2dc175e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2dc175e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ac592d1\" data-id=\"ac592d1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3745b16 elementor-widget elementor-widget-heading\" data-id=\"3745b16\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Leverage on lower interest rates<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-645e1df elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"645e1df\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7f21b6d\" data-id=\"7f21b6d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-653c0f8 elementor-widget elementor-widget-text-editor\" data-id=\"653c0f8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">If the current interest rates are lower than the original loan interest rates, refinancing is the easiest way to reduce your interest burden. Since interest rates directly determine the total interest cost and loan duration, even small changes in the interest rates can have significant changes to your overall interest payment in the long term. Let us look at an example:<\/span><\/p><ul><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Loan amount: Rs 50,00,000<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Old loan interest rate: 8%<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">New loan interest rate: 7%<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Refinancing benefits:<\/span><ul><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Interest cost saved: <\/span><b>Rs 18,03,099<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Loan paid off earlier by: <\/span><b>3 years and 8 months<\/b><\/li><\/ul><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-247f667 elementor-widget elementor-widget-image\" data-id=\"247f667\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"846\" height=\"523\" src=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/Loan-Outstanding-amount-1.png\" class=\"attachment-large size-large wp-image-850\" alt=\"Loan Outstanding amount 1\" srcset=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/Loan-Outstanding-amount-1.png 846w, https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/Loan-Outstanding-amount-1-300x185.png 300w, https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/Loan-Outstanding-amount-1-768x475.png 768w\" sizes=\"(max-width: 846px) 100vw, 846px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-37ead01 elementor-widget elementor-widget-spacer\" data-id=\"37ead01\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-78b50fd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"78b50fd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c39412f\" data-id=\"c39412f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d1aa1ed elementor-widget elementor-widget-heading\" data-id=\"d1aa1ed\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Reduce loan tenure<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9ba5427 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9ba5427\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-52063b5\" data-id=\"52063b5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c083f01 elementor-widget elementor-widget-text-editor\" data-id=\"c083f01\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">If your salary and surplus has increased since you got the original loan, you might have the bandwidth to afford a larger equated monthly installment (EMI). Most loans do not allow you to make internal changes to the agreed upon EMI structure and charge a penalty for lump sum prepayment as well. In this case, you can reduce your overall interest cost payment by refinancing to a loan option with a higher EMI payment and shorter duration. Let\u2019s put this in perspective with an example:<\/span><\/p><ul><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Outstanding loan amount: Rs 50,00,000<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Under original loan structure,\u00a0<\/span><ul><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Remaining loan tenure: 20 years<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">EMI: Rs 42,000<\/span><\/li><\/ul><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">After refinancing,<\/span><ul><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">New loan tenure: 15 years<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">EMI: Rs 48,000<\/span><\/li><\/ul><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Refinancing benefits:<\/span><ul><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Interest cost saved: <\/span><b>Rs 14,27,040<\/b><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Loan paid off earlier by: <\/span><b>5 years<\/b><\/li><\/ul><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ac572ae elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ac572ae\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e31296f\" data-id=\"e31296f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e7e3355 elementor-widget elementor-widget-image\" data-id=\"e7e3355\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/Loan-Outstanding-amount-2.png\" title=\"Loan Outstanding amount 2\" alt=\"Loan Outstanding amount 2\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bd25041 elementor-widget elementor-widget-spacer\" data-id=\"bd25041\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3d8d5ff elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3d8d5ff\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f9e380f\" data-id=\"f9e380f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9b9e7eb elementor-widget elementor-widget-heading\" data-id=\"9b9e7eb\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Change loan type<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f378cd2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f378cd2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f92feb2\" data-id=\"f92feb2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f956f5e elementor-widget elementor-widget-text-editor\" data-id=\"f956f5e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">This is usually done when someone has a <\/span><a href=\"https:\/\/www.investopedia.com\/terms\/v\/variableinterestrate.asp\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">variable rate<\/span><\/a><span style=\"font-weight: 400;\"> loan and wants to change it to <\/span><a href=\"https:\/\/www.investopedia.com\/terms\/f\/fixedinterestrate.asp\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">fixed rate<\/span><\/a><span style=\"font-weight: 400;\"> type. A variable rate loan is usually considered riskier as we are left exposed to changes in interest rates. Hence, in a low interest rate environment, it might make sense to refinance to a fixed rate loan and have that rate locked in instead of being variable.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d51b4ba elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d51b4ba\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9c13556\" data-id=\"9c13556\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2e9622c elementor-widget elementor-widget-heading\" data-id=\"2e9622c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Consolidate debt<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f793368 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f793368\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e0f4207\" data-id=\"e0f4207\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-945b050 elementor-widget elementor-widget-text-editor\" data-id=\"945b050\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"https:\/\/www.investopedia.com\/terms\/d\/debtconsolidation.asp\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Consolidation of loans<\/span><\/a><span style=\"font-weight: 400;\"> into a single loan is sometimes beneficial to reduce the interest on high interest loans and efficiently manage the repayment as only one loan needs to be paid up.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-39e6be9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"39e6be9\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9a63506\" data-id=\"9a63506\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5fc28df elementor-widget elementor-widget-heading\" data-id=\"5fc28df\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Other considerations<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-54baf52 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"54baf52\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d87707a\" data-id=\"d87707a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-52ec91b elementor-widget elementor-widget-heading\" data-id=\"52ec91b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Transactional cost<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8f924e0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8f924e0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e5df8a7\" data-id=\"e5df8a7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-edac7f0 elementor-widget elementor-widget-text-editor\" data-id=\"edac7f0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Refinancing usually involves transactional costs. These need to be factored in, to calculate the net benefit of refinancing. If there is an overall gain after the transactional costs, it makes sense to proceed.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5c86d4a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5c86d4a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-38d00b1\" data-id=\"38d00b1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0057d6c elementor-widget elementor-widget-heading\" data-id=\"0057d6c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Adverse refinancing<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-283c9e2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"283c9e2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0cb3de4\" data-id=\"0cb3de4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cd767fd elementor-widget elementor-widget-text-editor\" data-id=\"cd767fd\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">When the refinancing transaction is carried out without considering the gains or losses, it can be counterproductive. For example, refinancing to a variable interest rate could lead to losses in the future if the interest rates rise. Knowledge of the interest rate environment is crucial in making such decisions and being prepared for the impact.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-56a3332 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"56a3332\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a78db87\" data-id=\"a78db87\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-11ddf5c elementor-widget elementor-widget-heading\" data-id=\"11ddf5c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Bottom Line<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ac61b23 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ac61b23\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-48a3cde\" data-id=\"48a3cde\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-67732f0 elementor-widget elementor-widget-text-editor\" data-id=\"67732f0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Refinancing is an often ignored financial tool at our disposal. If we focus on the cost of our insurance policy or the returns on our investments to ensure that we come out financially ahead, why should we ignore the third pillar of our finances? Assessing refinancing opportunities on a regular basis can have a major impact on our overall interest costs &#8211; which often form a considerable portion of our expenses. These savings, as seen from the examples above, can put us in an advantageous position to achieve our goals.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>In this ever dynamic world, change is the only constant. That is just as applicable to the financial world, even more so in modern times. From changes in interest rates, fluctuations in asset values, volatility in business profitability, the macro and micro economic environment is constantly changing. But it\u2019s not always a bad thing &#8211; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1066,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[6],"tags":[],"class_list":["post-847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"uagb_featured_image_src":{"full":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/image2-1.png",974,715,false],"thumbnail":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/image2-1-150x150.png",150,150,true],"medium":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/image2-1-300x220.png",300,220,true],"medium_large":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/image2-1-768x564.png",768,564,true],"large":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/image2-1.png",974,715,false],"1536x1536":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/image2-1.png",974,715,false],"2048x2048":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2020\/05\/image2-1.png",974,715,false]},"uagb_author_info":{"display_name":"Admin","author_link":"https:\/\/www.cashvisory.com\/blog\/author\/admin\/"},"uagb_comment_info":7,"uagb_excerpt":"In this ever dynamic world, change is the only constant. That is just as applicable to the financial world, even more so in modern times. From changes in interest rates, fluctuations in asset values, volatility in business profitability, the macro and micro economic environment is constantly changing. But it\u2019s not always a bad thing &#8211;&hellip;","_links":{"self":[{"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/posts\/847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/comments?post=847"}],"version-history":[{"count":16,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/posts\/847\/revisions"}],"predecessor-version":[{"id":1477,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/posts\/847\/revisions\/1477"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/media\/1066"}],"wp:attachment":[{"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/media?parent=847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/categories?post=847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/tags?post=847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}