I have housing loan of Rs 8 lacs from SBIN floating @ of 9.15%. Should i go for refinancing of the above at the rate of 8.5% floating. If yes what is the cost of refinancing?
the cost of refinancing will be
forclousure charge by SBIN (say 2%) + processing charge a your new financer say (1.25%) = 3.25%
now as the rate difference is very minimal only 0.65% , avoid refinancing as you will end up paying 5 time the rate differnce . and your breakeven will reached a end of 5 years .
if your rate difference was more say, 2-2.5 % then you must swicth over.
(me too switching from ICICI (13.75%) to SBI (12.25%) )
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