Why choose The Thaiger for your Loan?
When you want to change the terms of a current loan, such as interest rates, payment schedules or other terms, you may consider home refinancing. However, home refinancing is not as easy as it sounds, especially for expats living in Thailand. Don’t worry. The Thaiger is here for you to simplify the process, making home refinancing easy and quick for everyone.
What is Refinancing Home?
Refinancing a home means getting a new mortgage loan, or home loan, to replace your current loan. Most people refinance their mortgage to decrease their annual costs, lower their interest rate, or change their lending policy from an adjustable-rate mortgage to a fixed-rate mortgage. Also, some people opt for home refinancing because they require access to cash to fund home improvement efforts or pay off multiple loans, so they use their household equity to secure a cash-out refinance.
When you do home refinancing, you apply for a new home loan just like you did when you first bought the house. However, this time, instead of using the loan to purchase a home, you use it to pay off your existing mortgage.
Refinancing erases the debt on your current mortgage. It lets you choose the loan terms and rates on your new mortgage, allowing you to get a home loan that saves you more money or helps you accomplish other financial goals.
Benefits of Refinancing Home and Why You Should Do It
Refinancing home offers many benefits. It can be a smart way to handle your money and offer you the option to secure a better deal. Here are some of the benefits of home refinancing and why you should do it.
Better Interest Rate
If interest rates have dropped since you take out the loan, you will also save money by refinancing your mortgage into a new home loan at existing rates.
Lower Monthly Payments
By lowering the interest rates, you can reduce the size of your monthly payment. If your refinanced mortgage has the same repayment date as your old home loan, you can lower your monthly payments further.
ARM or Fixed-Rate Mortgage
You can choose to refinance a fixed-rate loan if you currently have an ARM (adjustable-rate mortgage) to lock in your rate for the duration of your mortgage.
Shorten Your Term
Without a major rise in your monthly mortgage payment, you might be able to shorten your term by refinancing your mortgage.
You can borrow from your home equity with a cash-out refinance to acquire funds to cover major expenses, many people also do home refinancing to consolidate their debt.
Refinancing Home Might be Worthwhile for You
You’re probably contemplating your decision to refinance your mortgage and wonders if you should do it. Home refinancing is generally a good move if you can truly benefit financially from the new loan. Still, like all financial decisions, it comes with risks. To help you decide, let’s dive into some signs that a home refinancing might be worth it for you.
Overall had a good experience with the Thaiger from start to finish, the broker was very helpful and wanted the best for us. thank you for bringing us a step closer to refinancing our home.
refinance your home now through the thaiger, it doesn’t cost anything to apply and you should receive the results as if you were going to the bank.
I have been wanting to refinance my home for a while now, but everytime I go to the bank it takes hours and seems to always be complications, now that the thaiger has this service I will give it another try to refinance my house, will see how it goes.
We are getting the last stages finalized with Citi Bank, thank you the Thaiger for getting us this far and making this process super easy!
Excellent service, Mam was extremely helpful, knowledgeable and responsive, the website is easy to navigate. Overall great experience.
Enjuire now and leave it for the thaiger to find you the best deals.
Types of Refinancing Home
If you have decided why you want to refinance, knowing the types of home refinancing is the next step. Home refinancing comes in three varieties — rate-and-term, cash-out, and cash-in. They all have different advantages and requirements, depending on the rates and how long you expect to stay in your current home.
A rate-and-term refinance allows you to better take advantage of the economic environment or adjust your mortgage to fit your personal situation. With rate-and-term refinance, you can change your existing loan’s mortgage rate, loan term, or both. You get a new loan, pay off your old mortgage and then make payments toward your new loan when you refinance.
A rate-and-term refinance provides you with more or less time to pay off your loan, a lower interest rate, or another monthly payment. Some lenders refer to rate-and-term refinances as regular refinances.
- Lowering your rate.
- Reducing your payment.
- Changing your term length.
A cash-out refinance is a type of mortgage refinancing that takes advantage of the equity you have built over time and gives you cash in return for a larger mortgage. Simply put, you borrow more than you owe on your mortgage for a cash-out refinance and pocket the difference. The goal of this type of home refinancing is to tap your home equity.
A cash-out refinance doesn’t add another monthly payment to your bill list. Instead, the new loan is used to pay off your old mortgage, and the amount you’re cashing out is the money “leftover.”
- Consolidate debt.
- Get a lower interest rate.
- Free up money to invest.
A cash-in refinancing is when during a refinancing transaction, you pay extra cash towards your loan. It is the opposite of cash-out refinancing. Instead of tapping home equity to take out money for personal projects, You do the opposite. You actually use cash for a new mortgage with
- Easier loan approval.
- Eliminate private mortgage insurance.
- Earn a better interest rate.
The Thaiger’s Partners
Your needs can change, so can your home loan.
I wanted to refinance my mortgage but was feeling apprehensive about it. Besides, I didn’t know how to do it in Thailand as an expat, which is why I got the Thaiger’s help. They help me make the critical decision as to whether it is right for me to refinance and make the whole process easy for me.
Top tip: Make sure you have enough home equity until you consider whether or not to refinance your mortgage.
Foreigners and Mortgages
Today in Thailand, many banks see foreign loans as good for both the general economy and their own profits. It is tricky, but not impossible, to get approved for a mortgage as a foreigner.
The momentum gained in recent years has meant that some Thai banks provide foreigners with financing services but impose terms and conditions on their availability, like requiring ownership of the property in the foreigner’s own name, and if it is a condominium, the property has to be registered as a condominium under the Condominium Act.
Other Recommended Loans
To make your life comfortable in Thailand, there are many other loans you can take.
Steps to Refinancing Home
If you can lower your interest rate by at least half a percentage point, and you expect to live in that home for at least a few years, it’s worth to consider home refinancing. To ensure that you get all the benefits and avoid the risks, here are some steps to refinance your mortgage.
Set a clear financial goal
Every situation is unique, and everyone has different priorities. Therefore, the reason for home refinancing can be different for everyone. Make sure you set a clear financial goal from your home refinancing, whether it’s to your monthly payment, shorten your loan term, or pull out equity for home repairs or repayment of debt.
Check your credit score and history
Just as you need to get approval for your original home loan, you’ll need to qualify for a refinance. The higher your credit score, the better lenders will provide you with refinance rates.
Determine how much home equity you have
In excess of what you owe your mortgage lender on your loan, your home equity is the value of your home. Check your mortgage statement to see your current balance to figure it out.
Shop multiple mortgage lenders
It can save you thousands by getting quotes from multiple mortgage lenders. Discuss when it’s best to lock in your rate once you’ve chosen a lender, so you won’t have to worry about rates climbing before your loan closes.
Be transparent about your finances
Collect recent pay stubs, federal tax returns, bank statements, and any other requests from your mortgage lender. Your credit and net worth will also be examined by your lender, so disclose your assets and liabilities upfront.
Prepare for the appraisal
Some mortgage lenders require a mortgage refinance appraisal to determine your home’s current market value for a refinance approval.
Keep tabs on your loan
To guarantee that you keep updated on your mortgage, store copies of your closing papers in a secure location and set up auto payments. If you sign up for an auto-payment, certain mortgage lenders would even offer you a lower rate.
Many expats are interested in making Thailand their home and start contemplating a property purchase in Thailand, and a home loan can help you out with it.
A home loan simply means a sum of money borrowed from a financial institution or bank to purchase a house. Home loans consist of an adjustable or fixed interest rate and payment terms. The property is mortgaged to the lender as a security till the repayment of the loan.
Buying your first home in Thailand can be one of the most exciting periods of your life, but you may feel a little daunted by the whole process. After all, as someone who has never gone through all the hoops before, you probably don’t have a clear understanding of what’s involved.
Most lending institutions will require that you hold at least a 1-year work permit and a letter from your employer stating your salary and length of service to the company in Thailand. Our home loan service can help you prepare and find the right home loan for you.
Frequently Asked Questions About Refinancing home
In order to pay off the original mortgage loan, refinancing a mortgage means taking out a new loan. In certain cases, homeowners refinance to take advantage of lower mortgage interest rates, cash out a part of their equity, or minimize their annual costs for a longer repayment term
To receive a lower rate of interest and shorten their mortgage terms. To convert a fixed-rate mortgage (ARM) from an adjustable-rate mortgage, or vice versa. To dip into home equity to raise funds, finance a big purchase, or consolidate debt, to cope with a financial emergency
Yes, there are mortgage refinancing options with cash-back, or cash-out, and you can get money out of the loan to pay off any additional debt
You do not need to put down money to refinance your mortgage because the typical cost-and-term refinancing, which cuts the interest rate and payments or shortens the term of your loan
As a foreigner, the conditions for having a loan can be tight and most of the financial institutions expect you to have at least a 1-year work permit and a letter from your boss specifying your wage and service period to the Thai firm
The longest duration of the loan is 30 years (the borrower’s age plus the duration of the loan must be not more than 65 years old)
Additional documents, such as a loan contract with another financial institution, repayment receipts for the last six months and a mortgage agreement, must be submitted
Depending on the market’s demands, interest rates change. Interest rates rise to take advantage of an active economy while a strong demand for loans occurs. When demand for mortgages is low, interest rates decrease to attract new clients
Inquire Now to Refinance your Home