If we take out a home loan, we have the opportunity to repay the money ahead of time. Especially in the case of non-fixed repayments, it is worth trying for this. However, there are cases where early repayment is not a good deal.
If we get more capital, we reduce our debt
During a prepayment, we differ from paying the installment monthly, but return a larger amount to the bank sooner. As a result, our capital debt is reduced and we will have to repay smaller amounts on a monthly basis.
A similar but slightly different case is the early repayment , where we also repay the debt to the lender. It is true that, for both banks, it generates a lot less revenue than it would be nice to pay it off regularly. Therefore, if it is not very worth it, it will sanction early and final repayments.
Usually, with a prepayment fee of 1-2 percent, we can repay a larger amount, and this will definitely win.
But at most financial institutions, if you make a full prepayment within three to six years , or if you repay more than half of your principal, you have to repay all the benefits that came with the loan when you started the loan. Such are the valuation fees, notarial fees, etc. taken over by the bank, which could earn up to HUF 100,000.
We can also count on a calculator
Good to know, Qualified Consumer Friendly Home Loans are not a ‘penalty’ if we prepay too early. So let’s always see if we win more than we lose. There is already a prepayment calculator for the best decision .
It is also worth making the final repayment at the right time. It is also a kind of early repayment to switch from a less favorable loan to a better one, such as a consumer friendly loan. If you find a better deal on the market , you should switch even if you do not have trouble paying your monthly installments, as we will definitely win.
It is easiest to get stuck in the most expensive, outdated home loans , and find it harder for the poor to find a ‘willing’ bank to buy a loan. For example, you should always pay attention to the repayment arrears – that is, not to accumulate – because your credit history is always looked at by the new bank to apply for a redemption.