Borrowers are getting edgy in regards to the news regarding rising of interest rates for home loans, hence they are calling or inquiring the banks as well as mortgage advisers to know the real deal on this home loan refinancing interest rates. Some time back there was a news that the rates can rise a bit which brought this wave of so many inquiries at the desks. In Refinancing concept, borrower after checking the market goes for refinancing of his loan where he/she replaces their existing loan package with the new one which is more beneficial even if it is from a different bank.
This Rumor got more air after the big win of Donald trump in the US presidential election. Even the co-founder of one of the online site “get.com” said that “There has been a slight pickup in refinancing inquiries over the course of last week… as news of the Trump presidency started to sink in and market expectations of an interest rate hike in December become more intensified”. However, in reality, the hike in the interest rates is dependent upon the fact that whether the rates are hiked by US Federal Reserve or not, although as per the statement of fed Chairman Janet Yellen there can be chances of rising in the interest rates that too soon.
Many leading banks and mortgage advisors in Singapore have reported that the cases of home loan refinancing have risen so far in the current year. This news no doubt has initiated in the changes of rates in many banks such as, “The three-month SIBOR or Singapore interbank offered rate – used to price some home loans – spiked to 0.92213 percent.” “The three-month SIBOR, which had flat lined at about 0.87 per cent since July, crossed the 0.9 percent level on Nov 15, from about 0.88 percent a day before”. Many more banks have shown the same up gradation.