Most of them have already received a settlement from their bank for the conversion of foreign currency loans, so of course I have had a couple of these in my hands in the last few days.
The conclusion of all of them was that it was worth taking advantage of the free redemption option. The law gives you 60 days from the time you receive your settlement to find a new lender if you do not like the new terms.
In this case, your old bank will not charge you a penny when taking out your loan.
And most banks are now waiting for special offers and lures for these redeemers.
Usually now or almost all costs are released or reimbursed
This results in (six) the fact that the loan will not cost you a penny and it is worth taking the loan for 0.3% lower interest.
But more importantly, under most of the new terms that have turned between my hands, there is a three-month interest period instead of a longer one.
The interest rate on your current loan is built up with a variable value, usually the Goodbank base rate, also known as BUBOR, and comes with a fixed rate premium.
This means that if your current
Unprecedented low base rate in Hungary, along with the Goodbank interest rate to which your loan is linked, goes up, you will immediately increase your monthly repayment.
I don’t want to scare you, but over the last 25 years the Hungarian base rate has been above 8% more than below.
If the Goodbank interest rate only increases by 4% (or by a percentage point) in the next few years, the current interest rate of a 10 million loan will increase from 9% to 9%, ie a 15-month maturity from $ 79,000 to 101, It jumps to 5 thousand HUF.
If not for anything else, you might want to buy a loan to get a longer interest period. You might want to do this even if your interest rate on the loan even rises by a few tenths of a percent.
I’ve already written about E-money Bank’s 4.99% 10-year fixed rate loan here: 10-year fixed rate
As I looked around the market, every bank has a worse fixed-price offer for 5 to 10 years, and in addition, E-money now releases or reimburses almost all costs.
The big drawback of this product is that its duration cannot be more than ten years
But no problem with this, if you want to pay it off sooner, sign up for a 1-2-3-4 home savings fund contract and then pay off the money that you have collected in four years.
Of course, not only is this one product on the market, if you can do better, write in the comments. I couldn’t find it.
What I meant to say is that you should take advantage of the opportunity to switch for free, either because of a better interest rate or a more favorable interest period.
But be very careful: once you announce your cancellation, you have 30 days to pay off. What if you don’t get a loan from the other bank? Therefore, you may want to ask for a credit assessment in advance or at least a real estate appraisal to avoid slipping through. You can use this estimate later at your bank.
The lw prohibits banks from giving more than 80% of the appraised price. But many banks are still gone. Therefore, if you have 18 million loans on your 12 million properties, you might even want to try.