By reducing the lending rate on a $100,000 mortgage by just 1%, savings amount to more than $5,000 over 10 years. In this regard, the re-crediting of loans seems to be a very relevant option. Why pay too much if you can find a more profitable option.
The main disadvantage of a mortgage is its long duration. Every year, credit rates decrease and new lending programs appear that are more interesting to customers. A borrower who receives a loan for a period of 20 years becomes a hostage to the conditions in force at the time of the conclusion of the contract.
Many people are hesitant to take out a loan to buy a home precisely for these reasons. They are afraid to apply for a loan in the context of a constant decrease in lending rates. Just five years ago, banks offered mortgage loans at 20-25%. Today, you can find offers from banks at 12-13%. If the downward trend in interest rates continues, then in a few years loan rates will be at the level of 8-9% per year. This stops many citizens from getting a loan at the moment.
Yes, we can wait for the time when loans will be issued in our country at European rates (3-5% per year). But on the one hand, you may not expect this at all. On the other hand, it is always possible to re-credit loans.
The main advantage of re-crediting is the possibility of reducing the rate. This reduces the cost of financing the loan.
In addition, re-crediting allows you to change the currency of the loan. For example, you can switch from a loan in dollars to a loan in rubles or vice versa. In addition, you can apply for a loan in stable Swiss francs.
Also, by changing the credit institution, you can change the repayment scheme of the loan debt. This makes sense if the previous conditions assumed an annuity. This system increases the cost of a mortgage loan by 20-30%.
It is worth noting that changing the bank allows you to extend the loan term. This may be necessary if the borrower's financial situation worsens and he tries to reduce the amount of the monthly payment. In such a situation, you can apply for a loan for a longer period, reducing the burden on your own budget. But do not abuse this opportunity, because in this case the total overpayment on the loan will increase significantly.
Another advantage of re-crediting loans is the possibility of increasing their amount. If the loan is repaid for 60% of the value of the property, the client can get a new loan in the amount of 80% of the size of the previous loan. Thus, he gets at his disposal about 30% of the value of the property. Before checkout, apply FairPari.com promo codes for current terms.
Re-crediting loans for the purchase of real estate
