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MOSCOW, April 14Often, borrowers seek to optimize their debt burden and use loan refinancing, but in some cases this may be unprofitable: for example, if most of the debt has already been repaid, Olga Daineko, an expert at the Center for Financial Literacy of the NIFI of the Russian Ministry of Finance, said.
Refinancing is the issuance of a new loan for the purpose of repaying an existing obligation. Most often, borrowers consider refinancing in the following circumstances: initially, a too short loan term with a large monthly payment was chosen, interest rates for refinancing in a third-party bank are lower, or several loans need to be combined into one loan obligation. 
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«As a general rule, refinancing can be called profitable if the interest rate is reduced by at least 2%, and when the loan term under the old agreement is still long. The benefit of refinancing is questionable when half or more of the loan has already been repaid. the new bank may offer to increase the loan amount.A lower rate and a longer loan term should not be a decisive argument in favor of increasing debts, even if the monthly payment seems feasible, «says Daineko.
As a rule, at the beginning of lending, the client mostly pays interest, and only a small part of the monthly payment goes to repay the principal, the expert explains. Therefore, with «late» refinancing, a situation may arise when the final overpayment for the money taken once is not covered by the benefit of refinancing, even at a more attractive lending rate.
“However, in a situation where the borrower is faced not with a question of profit, but of reducing the monthly payment in order to avoid delinquency on obligations, refinancing is a working tool to reduce the financial burden,” the expert draws attention at the same time.
If a mortgage is being refinanced, you need to be prepared for the fact that until the new lender receives a mortgage from the previous bank, the loan is unsecured, and a higher interest rate will be applied on it until the new encumbrance is registered with Rosreestr, Daineko warns. -title=»A project on auto-informing about a loan taken was submitted to the State Duma»>