Capital requirement is the base of any business that can define your dreams and convert it into a profitable reality. But the first and foremost hurdle is where do I get the money for either starting a business venture or expand an already established business?
Securing a Loan
One of the convenient ways of securing a loan is through acquiring loans through assets. One of the assets in question is Property. If you do have a property, be it a land, apartment or a bungalow, you can avail a scheme called Loan against Property.
Some of the advantages of Loan against property (LAP) is; it is a secured loan. LAP is considered one of the safest bet for securing loans as the retail loan is usually about 12 to 16%. The rate of interest being lower, the EMIs turn out to be cheaper. While availing LAP, the property value more often than not helps to identify the maximum possible loan eligibility. LAP can also be repaid at a relaxed pace as the tenure for repayment is 15 years.
Loans Against Bonds
A lot of people are unaware that LAP is not the only way to secure loans. Loans can be acquired through other means such as Loans against Bonds or Securities. Loans against mutual funds can be beneficial rather than directly opting for a personal loan with a very high-interest rate. Loans against Bonds give a great opportunity to garnering instant liquidity for the MF units held by an individual. This scheme is extremely beneficial for short-term monetary requirements. The advantage being an individual need not sell their own mutual funds. The borrower should only request the Mutual Fund registrar to ensure the right of possession to keep the funds be passed on to the lender till the debt is discharged by the rightful owners of the bond.
Borrowers to Capitalize
JM Finance is a firm that enables the borrowers to capitalize on their reserves by giving out liquidity against properties and securities or bonds. JM Financial Group has specialists who customize their product offerings based on the needs of the consumers in order to provide a more diversified range of expertize for varying market segments.
How To Refinance A Home Equity Loan
Refinancing your home equity loan is simple when using online lenders. By comparing loan quotes, you can find the lowest costing refi solution. In addition, you can save time and hassle by completing your application online. In less than two weeks, you can reduce your rates and payments by refinancing your home equity loan.
Refinancing Options For Home Equity Loans
You have a number of options for deciding how to refinance your home equity loan. The simplest method is to just refinance your current home equity loan as a second mortgage.
The other option is to refinance both your first and second mortgages to qualify for lower rates than if you just refinanced your second mortgage. You also save on closing costs by paying lawyer, appraisal, and other fees just once. In addition, the hassle of multiple applications is eliminated.
Combining Mortgages
However, combining mortgages is not always the best financial choice. In some cases, refinancing separately will get you better rates. You may also save money by having different terms on your mortgages. For example, you may want your first mortgage for 30 years, but your second mortgage for five.
Start By Comparing Numbers
To see real savings on your interest and monthly mortgage payments, ask for loan cost estimates from lenders. For a quick search, look at the APR to find the lowest costing refi package.
But to get a real sense of your savings, calculate the interest cost on your current home equity loan and potential refi loan. Remember too that there is flexibility with your refinancing. You can shorten your loan to reduce interest or lengthen terms to reduce monthly payments.
Finishing The Refinancing Process
By looking online for your refinancing quotes, you have practically completed your loan application. When you receive a quote, most lenders provide an option to finish the application. This may mean submitting a request online or completing a form. Once your refinancing has been approved and loan contract signed, your original loan will be paid off by your lender. You can start enjoying your lower monthly payments in less than two weeks.