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Why you should consider refinancing your mortgage with the fall in interest rates?

Why you should consider refinancing your mortgage with the fall in interest rates?

Every other financial person have been predicting a recession for the longest time but no one really expected it to come in the form of a pandemic that will spread across the world and killing so many people.

The Covid-19 Pandemic has been causing world markets to go straight into panic mode with many people staying home and not spending in the markets that they used to spend in. With the whole market moving south fast and the world markets looking to stall. The federal reserves of the United States of America has since reduced their interest rates. With this move, many other economies around the world have also follow suit to reduce interest rates to spur borrowing.

Rates have fell to near zero for most markets and in Singapore the Singapore Interbank Rates are expected to fall as well.

Mortgage loans usually will have a lock in period of 2-3 years before they increase in the rates that they are charging their customers for. If you are someone who is trying to pay the least that you can, you should always refinance your mortgage every two years.

Together with the lock in period, if you are out of it, you SHOULD try your very best to refinance it now with the much lowered interest rates kicking in. When you do that, you can save a couple of hundred dollars a month if you have a mortgage amount of $1 million.

This will add up to 5 digit figures across the years that you will be loaning and for the middle class this can make a big difference to your economic output.

When you are able to save this amount you can make more investments and grow your wealth much faster.

Even for someone that is owning a HDB in a mature estate, it can be a couple of hundred of savings too from your current loans.

Look into this to help yourself safe some loan amounts, we look forward to getting this done for you through our partners at Avant Mortgage. If you are keen to find out more contact them!

Koh Management works closely with our business associates to provide bookkeeping services and company incorporation services in Singapore.

Why you should consider refinancing your mortgage with the fall in interest rates?

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