Home mortgage rates are still favorable, but the end of this period is slowly coming to an end. How can we choose the best deal on the current market?
We still do well with home loans
If someone says that home loans are more expensive than before, we don’t have to believe it. Although there has been a 3-5 month period this year, when interest rates started to rise slightly for some financial institutions, there are banks that have lowered APR levels even more than before.
According to experts, it will now be worth borrowing for loan redemption , as this is now an important reason for many to take out a loan, and banks are promoting the redemption of earlier loans.
How do we find the best?
As of October 22, Good Finance has ceased to be eligible , so aligning home savings and home loans is no longer an option. Not to touch it?
It is worth focusing on the fact that the shorter our term , the lower the total cost we will be able to repay the loan.
This is especially true if you do not have a fixed loan, as the installment may increase unpredictably.
If we determine the monthly amount we can set aside for repayment, we can look for a favorable loan that can be repaid as quickly as possible and preferably fixed. Of course, based on our credit standing, the bank also indicates how much we can repay each month.
With the same repayment versions, we can give loans with interest rates of 5 to 10 years .
Do not be afraid of early repayment
We have the best home loan interest rate, but due to the size of our income, are we unable to pay more monthly installments and the repayment is too long? What we can do is prepay as soon as we can. Banks should be given the option to repay the loan before maturity for each loan.
It is not really worth it in the first 4-5 years , because the fee is very high, but after that it is worth to pay the 1.5-2 percent prepayment fee.
There are several cases where this option is free , including:
if the prepayment is made on the basis of an insurance contract concluded as a repayment guarantee;
if the amount of the prepayment made once by the consumer does not exceed two hundred thousand forints within 12 months;
if we make a prepayment required by the financial institution;
and finally, if we discuss the interest rate change before the interest rate change, and therefore repay the loan.