The options available to transfer loan are:

• Reduction in Term: You can keep your EMI constant and reduce the loan term. This possibility arises in case you are comfortable with the current EMI and wish to clear the loan faster.
• Reduction in EMI (Equated Monthly Installments): EMI refers to the fixed sum of money that you will be paying to the housing finance company every month. The EMI comprises both interest and principal repayment. The size of the EMI depends on the quantum of loan, interest rate applicable and the term of the loan. You get the option of reducing your EMI with the term being constant, that is, the loan will need to be repaid in the remaining term as per the terms and conditions of the previous sanction by the bank.
• Additional Loan (Top Off Loan): With both EMI and balance tenure remaining the same. The bank provides you with additional loan but keeps the EMI and the balance tenure as per the original terms. 

Refinance your home and take advantage of great rates!

Documents needed for refinance:

• A letter from the existing bank stating the balance loan amount and the tenure of the loan. 
• Statement from the bank certifying your repayment record in the last year.
• Photocopies of the property documents held by the bank.
• Letter of receipt from the bank listing the title documents held by it pertaining the property financed. 
• Loan agreement of the previous bank for the purpose of determining the applicants and/or owners for the earlier loan.

The reasons to refinance are:

• It allows you to save money especially if you have taken the loan in the high interest rate. 
• When you refinance, you are getting a new first mortgage that pays off and replaces the old one. The move can lower your monthly payments and/or your overall interest bill. 
• It allows you to convert all or a portion of your equity loan from an adjustable rate to a fixed-rate installment loan.
• It  is also a way to avoid a balloon payment. If you combine your first mortgage and home equity loan or credit line, you can get one fixed-term payment and avoid paying a giant lump sum. 
• To shorten the loan term and shave the interest costs.
• To pay for a big expense such as a remodeling of the house or for the educational purpose.
• To convert the high-rate second mortgage into a  new lower-rate first mortgages. Some borrowers can refinance both first mortgages and second mortgages into new, lower-rate first mortgages via cash-out refinancing. Borrowers get the difference between the old loan balance and the new one at closing to spend as they see fit.

Always keep in mind when going for refinancing:

• Interest rates move in cycles, so the best time to refinance is when rates drop. Whenever rates are low, many borrowers will find that refinancing their first mortgages makes sense.
• Refinancing entails closing costs and other fees, so it's important to know whether lower monthly payments will offset that cost.
• Another factor to consider is how long it will take you to break even. 
• If you plan to sell your home in a year, refinancing is not the smart thing to do.
• Be aware, though, that refinancing can be a bad deal for those who are taking out equity to pay off credit card debt. 
• Another downside of refinancing your equity loan is the possibility of dealing with a new lender, perhaps one in another state, who handles the loan differently. There may be new fees for copies of documents and other services. 

The disbursement for a refinance loan is always in the form of a Demand Draft favoring the bank to the extent of the balance principal outstanding. Any remaining amount to be disbursed over and above is done by way of a cheque in favor of the customer.

Refinancing reduce your loan term without substantially affecting your monthly payment. Refinancing your house now can have a real impact on your financial health.