Many repay their loans while at the same time carefully protecting their invested, set aside money. However, it is sometimes worthwhile to put bank loan repayments in the foreground at the expense of the security reserve.
Professionals generally recommend saving at least 3-6 months in revenue. With that in mind, if we have enough capital, it is worth leaving the rhythm of monthly repayments and sacrificing our money to pay off our loans early .
Although the bank will have to pay a special fee for the early repayment
Currently up to 2 percent of the amount repaid – this step will mean that we will have to pay much less interest from that point on. Banks generally charge the same amount for early repayment – that is, when we say good-bye to the loan – as much as for early repayment. For example, the maximum rate is 2 percent for Good Finance and 1 percent for Goodbank.
It is good to know that there are separate ‘ad hoc’ ceilings that set the highest fee for a home loan for banks. If the early or final repayment falls on the date of the interest period, the maximum limit is 2 percent , unless the other loan is repaid, the above fee may only be 1.5 percent . If you are paid on the date of the change of interest period, 1% of the same fee.
It is worthwhile to look at the offers in advance from this point of view
As there are some conditions, such as self-payment, that are free of charge, or that we can ‘bail in’ twice a year.
How much can be saved if we are ‘irregularly’ repaid from a financial institution’s point of view?
In an article on this subject, takes an example of a $ 10 million home loan with an average APR of 5 percent, repayable in 20 years at a 5-year interest rate. If by the end of the fifth and the tenth year we manage to collect HUF 1-1 million in repayment of repayments, we will gain a total of HUF 2.6 million. We also paid a prepayment fee. The monthly installments were repaid by 11% and then 19%.
Feeling the final repayment
From this example, it is clear that if you can raise capital while paying off your loan, it is not advisable to treat it separately and save it; we will gain more by paying off our loan repayment. The sooner the prepayment takes place, the easier it will be for us to pay off the loan.