Debts can be very difficult to handle.
So does any other ‘financial planners’ that are striving to offer personal loan services.

4 reasons why you should not refinance mortgages

“As a home loan broker, it’s always wise to choose the best decision for the customer,” said one of the home loan consultants. “The decision made to advise customers to take or to not take Malaysia home loans carry a heavier stress than payees’ themselves.”

Refinancing mortgages work for people who are really capable of handling their financial situations in a smart, manageable way. Not some Tom, Dick or Harry that carries his finance just in his mind. Refinancing mortgages help for people who wants to make life easier for themselves by:

  1. Eliminating financial hassles by applying for a loan to pay-off previous ones so that they only pay to one financial institution alone.
  2. To shorten a loan’s term. For example, for that 30-year fixed-rate mortgage on a $100,000 home, refinancing from 9% to $5.5% cuts the term in half to 15 years, with only a slight change in the monthly payment from $804.62 to $817.08
  3. Converting adjustable/variable rates into fixed rates.
  4. Tapping equity and consolidating debts. It can be tax deductible in some areas.


  1. If you’re 10-20 years into the paying the home loan or home mortgage. Refinancing could just increase your costs in the long run.
  2. If you’ve stressed your credits and hiked your Debt Service Ratio (DSR), you may not qualify to refinance mortgages.
  3. If you’ve stripped maximum equity (Borrowing more than 90% of total home value in mortgages and home equity loans value) then refinancing will not make sense.
  4. If you are spendrous, never consider refinancing. Refinancing mortgages for credit card bills and so forth are never the way to go – You’ve turned a short term debt into a long one.

Contact home loan consultants to see if you’re eligible and if it’s best for you to refinance.

About the author

Malaysia Loan


  1. Willie Meester

    Its going to be hard to find a card with no annual fee and low apr for someone to re establish their credit, your best bet is to try capital one. I have 2 cards thru them a visa and a mastercard their rates are a little high but they are a good company, I had no credit established at all and I got a credit card thru them and they give credit increases every 3 months or so I believe if you make your payments on time and dont go over the credit limit.


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