How does loan refinancing work Colorado

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Calculation example: with a loan amount of USD 100,000 at 10% per annum, for a period of 1 year, the total amount to be repaid will be equal to: USD 105,499.06, with a monthly payment: USD 8791.59. The consequences of not paying the loan are regulated by the legislation of USA.

    Loan selection

    When choosing a new loan, it is necessary to compare the costs of obtaining it with the savings from lowering the rate. To do this, the borrower needs to find out all the costs of refinancing at a new bank, as well as calculate the difference in interest rates on loans.

    It is not recommended to start refinancing if this difference is less than 2%. When refinancing a loan, the solvency of the borrower is assessed by the bank, as in conventional lending. He checks a person’s credit history and, if during the period of servicing a loan in a previous bank, he constantly had delays, he can refuse to refinance him.

    The borrower may also be refused if his financial situation has deteriorated since the receipt of the first loan.