R
Loans
Refinancing
You've got a loan you're paying off, interest rates have dropped, or your credit score improved and now you qualify for better terms. So you take out a new loan to pay off the old one and hopefully save money. But check the fine print — some lenders charge penalties for early repayment.
Usage Examples
"Nomsa's personal loan was costing her 22% interest when she started. After 18 months of on-time payments, her score improved and Capitec refinanced her at 16%. She's saving R200 a month for the rest of the term."
"Thabo wanted to refinance his furniture account to get a lower rate. His first lender hit him with a R3,000 early settlement penalty, so the whole thing wasn't worth it."
"Refinancing your bond when rates drop can save you hundreds of thousands over the remaining years. Do the maths, but usually it's worth the hassle."