When you refinance your home country loan with MPOWER, the process of conversion and disbursement into U.S. dollars involves several steps:
- Currency Conversion and Disbursement: Once approved, the refinancing amount in your home country's currency is converted into U.S. dollars based on the current foreign exchange (FX) rate. This converted amount is disbursed via electronic funds transfer (SWIFT- International wire transfer) to pay off your original loan.
- Settlement with Original Lender: The converted and disbursed amount is used to settle your existing loan with your home country's lender. Depending on the receiving lender, this process typically takes 3 to 5 business days.
Are There Any Fees Associated with It?
Yes, there are fees associated with converting and disbursing a refinance loan:
- Origination Fee: A 2% origination fee is added to the disbursed refinance loan amount with MPOWER.
- Foreign Currency Exchange Rate: The converted US dollar loan amount/your disbursement amount includes the foreign exchange rate
- Premium Charge for Conversion Service: This is an additional charge for currency conversion and fund transfer services by your home country lender (if any).
Example of Cost Involved
Suppose your original loan amount in your home country is equivalent to US $10,000:
Origination Fee: 2% of US $10,000 = US $200
FX and Conversion Premium: Your US $10,000 conversion includes the forex markup and conversion premium.
Total fees would be US $200, making the new principal amount roughly US $10,200 after conversion and fees.
This detailed information should clearly explain how your home country loan is converted into U.S. dollars when refinancing with MPOWER, including the associated fees and steps to manage them efficiently.