What is meant by follow-up financing?
What is meant by follow-up financing?
A follow-up financing is a type of financing typically taken out after the fixed interest rate period of an existing mortgage has expired. The main goal is to refinance the remaining loan balance. Essentially, it is a continuation of the debt repayment, allowing the borrower to retain ownership of the property while meeting their financial obligations by repaying the outstanding debt. Follow-up financing is an essential part of long-term financial management and a means to ensure financial stability.