0 Comments

Nowadays, few can buy an apartment for cash. Most people also need credit to buy a property, not their dream home. Real estate prices have fluctuated, especially in Budapest and in more popular settlements. There are few who can buy the real estate they really want. It is simply impossible to generate as much self-sufficiency, or many are not getting the credit they need to buy the property they want. So, as a compromise, they choose either a smaller property where they want to live or a larger one where they can get cheaper real estate.

Despite the high real estate prices, many are buying homes, probably due to low home mortgage rates, which have never been as low as they are today. Up to 2.5% home loan interest rates can be found in the market, which is much lower than previously taken home loans, which were around 8-9% at that time. Since we are talking about a home loan, it is a larger amount, and with such interest rate differentials, it could mean millions of forints overpayment to banks if you do not review your loan.

 

It is important that you review your home loan every year

It is important that you review your home loan every year

So that you do not throw your money out the window, as interest rate cuts can save you money if you are in the loop. It is worth considering the option of buying a loan, as this will give you a better loan structure and cheaper credit. Surveys show that the majority of people do not really use the option to buy a loan because they do not want to have to go through a search, so they tend to stay with their older, more expensive loans.

 

What you need to know about redeeming a loan

What you need to know about redeeming a loan

It is best to redeem a home loan with a home loan. If you want to replace your other loans because of favorable interest rates, it is advisable to treat them separately from home loans. Mortgage loans have a much lower interest rate than other types of loans, so your APR is more favorable. There may be a 1.5-2% difference between the interest rate on a home loan and a loan for a general purpose or other loans. For larger loans, this can be a difference of several million forints. If you think you need expert help for this, calculate on our site, where our staff will assist you, or you may even personally run into branches where the clerks are available.

 

How to win a loan redemption?

How to win a loan redemption?

When it comes to redeeming a loan, it is very important that you keep in mind the repayment schedule, the maturity and the interest period. The following options may be considered:

  • Due to lower interest rates, the loan can be repaid in a shorter term with the same installment as the old loan. The advantage of this is that the loan is repaid sooner and can be disposed of faster.
  • With the same installment, a home loan can be safer if you switch to a longer interest period or even a fixed one. This is a good solution because monthly expenses are predictable, and even if interest rates on home loans increase in the future, the installment will not change.
  • With decreasing monthly spending, neither the maturity nor the interest period changes, so everything stays the same, yet it pays back less.

So, to sum it up, it is definitely worth reviewing your loans and inquiring about what new loan schemes are on the market and choosing from them. This can save you a lot of money, especially for a home loan, up to millions of forints. It’s just a matter of deciding, don’t wait any longer, look at the banks’ offers, because it costs nothing, but saving on a home loan can save you a great deal.

Author

admin@thebiblepost.com

Leave a Reply

Your email address will not be published. Required fields are marked *