Mortgage Refinance

The revision in the refinance limit comes on the back of rising contagion fears after IL&FS, a major infrastructure financing and construction company, defaulted on some of its debt obligations.

Till about a couple of years back, one had reason to be worried about the prepayment of one's home loan because of the costs involved. But that does not hold true any longer, with the RBI having directed banks and financial institutions to do away with any penalties on floating rate home loans.

According to reports, Mr Bernanke wanted to refinance the mortgage on his Capitol Hill house, which he and his wife had bought for $839,000 (nearly Rs 5 crore at 1 dollar=60 rupee) in 2004.

The revision in the refinance limit comes on the back of rising contagion fears after IL&FS, a major infrastructure financing and construction company, defaulted on some of its debt obligations.

Till about a couple of years back, one had reason to be worried about the prepayment of one's home loan because of the costs involved. But that does not hold true any longer, with the RBI having directed banks and financial institutions to do away with any penalties on floating rate home loans.

According to reports, Mr Bernanke wanted to refinance the mortgage on his Capitol Hill house, which he and his wife had bought for $839,000 (nearly Rs 5 crore at 1 dollar=60 rupee) in 2004.