The pandemic has brought about plenty of challenges, but if you know where to look, there are sneaky benefits that you can take advantage of. Like lower interest rates on loans. This is something that could be hugely beneficial to those who are struggling with lockdown blues.
Refinancing is one way to give your finances a boost. In a nutshell, this means taking out a new loan to repay the old one, or, replacing a current loan with another one under different terms.
In today’s climate, lenders are lowering interest rates which makes it a great time to refinance! At Friendly Finance, we recommend going for it – as long as you can see it through in the long-term.
Here are some reasons the lockdown is a great time to refinance:
Lower Interest Rates
Lower interest rates are beneficial in that they allow you to pay the loan back quicker, which will, in turn, improve your credit score. If you’re in the position to, you can even increase your monthly payment, which will reduce the duration of your loan and you’ll end up paying less interest in the long run.
Another good reason to take advantage of the decreased interest rates is that if you maintain a good track record with repayments, it can help you secure a good interest rate on future loans.
More Flexible Repayment Terms
When you search for a loan, you’ll find information such as interest rate and loan repayment terms. With the lower interest rates at the moment, it should be easier for you to pay more than your stipulated premium every month, effectively getting ahead of the loan curve.
Paying more each month results in repaying your loan faster, which means less interest! With the lower interest rate, premiums are easier to increase. Repaying before the terms of the loan suggest that you should be, also improves your credit score.
There are things that need to be considered and weighed up such as the loan and the extended repayment terms and the interest on the amount that you are going to be borrowing. With the interest being low, it would be better to repay the loan as quickly as possible.
Bear in mind, that is meant to be a short term-relief for you. With extended loan periods, you don’t want to get yourself into unnecessary trouble, so take care when choosing.
Find Great Deals Online
Don’t take the first offer that comes along. Make sure that the offer you accept makes sense and fits your requirements. Weigh up all the short-term and long-term options and benefits before deciding if you want to accept the terms. Your finances are still in your hands!
Conclusion
If you’re considering the option to refinance, then let Friendly Finance help you. We want what’s best for you and offer complete transparency to help you make the best decision for your financial wellbeing. Let’s work together to refinance!
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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