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How to Refinance Your Loan in Costa Rica

Refinancing can be a good option if you currently deal with over-the-top high-interest rates or need to extend your repayment term. Gap Equity Loans may be your solution on how to refinance your loan in Costa Rica. After you submit an application with us, we will quickly start the due diligence on your property to accurately determine how to refinance your loan through private lenders. The more we understand your property, its location, and your overall current situation, the faster and easier we can facilitate a loan for you through our lender network.

Honesty is the quickest way to get a loan with the private lenders we work with, and we reciprocate that honesty. We do not work with sharks and are not interested in taking loans that may lead to foreclosure. We know you are coming to us for help with a loan because the Costa Rican banking options here have likely already turned you down after a long process of stringing you along, as it can be near impossible to qualify for their standards. Thus the private lenders are here to provide help with loans and refinance loans that are up and coming or have already come due.

 

Refinance Your Loan With A Private Lender

A lot of our business comes from refinancing loans. We prefer that you are up to date on your payments and have a solid history of making your payments on time. We are aware that having to refinance your loan may have nothing to do with you as a borrower. It can be implied that the previous lender has changed their plans for their money, or their financial situation has changed in one way or another. Perhaps your loan term has expired, and your current lender would like their funds returned instead of renewing the loan. Conceivably you want to save money by taking advantage of a cheaper interest rate.

Whatever the case, we will try to help you and offer alternative ways to get you back on track. Often people can be hesitant to tell us that they are behind on their condo fees or property taxes. It’s better to have these kinds of things out in the open, so tell us, it’s okay! We can ensure these are covered with extraordinary disbursements from the loan amount during closing.

Keep in mind that refinancing your loan can be a quicker process than you may think and more straightforward than starting from scratch, as you’ve likely already gathered the necessary documentation you would need for your previous lender.

 

Pay Down Your Principal When You Can

We recommend you pay down some of the loan principal over the term when possible. You may already be at a near 50% LTV (Loan to Value), meaning that your credit with most private lenders is already maxing out. That is why paying down at least 10% or more is a good idea because a loan renewal means costs, which makes the loan riskier if the total loan amount goes up. The higher the risk equates to higher the interest rates. So, if you find yourself with a surplus of cash, do yourself the favor of paying down a portion of the loan. 

Contact us today so we can help show you how to refinance your loan in Costa Rica!

 

What Does Refinancing a Loan Mean?

A borrower may be able to swap their existing debt obligation for one with better terms by refinancing their loan. Through this procedure, a borrower obtains a new loan to settle an existing one, and the terms of the previous loan are replaced by the conditions of the new loan.

 

Can refinancing lower your monthly payment?

Refinancing to a lower rate or extending your loan term could decrease your monthly mortgage payment, making it simpler to pay your mortgage on time each month while also potentially covering other bills and costs.

 

When you refinance, do you lose equity?

When you refinance your mortgage with a new loan, your home’s equity is preserved. Equity in a property is influenced by a number of variables, such as local school rezoning, crime rates, interest rates, and unemployment rates.

 

How can I tell if refinancing makes sense?

The general rule of thumb when deciding whether to refinance your mortgage is that if you can lower your current interest rate by 0.5% or more, it could be worthwhile in the long run due to the money you would save.

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