Archive for July 2018

Find the Best Deal With the Right Mortgage Broker

Welcome! How much does it cost to repay the mortgage ahead of schedule, is it worth repaying the mortgage ahead of schedule? We will talk about all these issues in our article today. From specific calculations, you can understand whether you should be involved in this procedure and when the recalculation of housing credit is beneficial, and when it is better not to recalculate.

Early repayment of a mortgage is payment ahead of schedule in large amounts

There is a complete, when the full balance on the loan + interest for the current day is entered (the mortgage closes completely), but it is partial when the amount is paid more than the monthly payment on the schedule, but less than the balance of the entire debt (the payment schedule is recalculated). The support is offered by the mortgage broker GeelongĀ .

Before you figure out how to repay the mortgage ahead of schedule, it is necessary to decide in principle whether it is worth it. The answer depends, among other things, on your projections for inflation.

To assess the appropriateness of early repayment of a mortgage, we will consider a specific situation. Let’s say you borrowed 10 million rubles for 10 years at 10 percent per annum. If you pay on an annuity scheme, that is, your schedule provides repayment of the loan with equal monthly payments, then your mortgage payment is 39,645 rubles / month. Let the income of your family is now 100 thousand rubles a month. That is, you are forced monthly to divorce 40% of the amount of the family budget to pay the mortgage.

Now we turn to inflation

Let you predict that inflation in the country will be, in the next 10 years, 15% per year. Suppose that your income will grow in the same proportion. Then in 10 years your family monthly income will be 352 thousand rubles. That is, you will give to service a mortgage loan is not 40%, but only 11% of your income.

Payment for repayable loans will not be as burdensome as it is now. So is it worth it to hurry? Assumptions about 15 percent inflation and proportional increase in incomes are not at all fantastic, so, is it not better to wait until the problem itself resolves, and not go to partial early repayment of the mortgage.

Possibility to repay the loan before the due date

The answer to the question of whether it is possible to repay the mortgage ahead of schedule is definitely positive. Early repayment of the mortgage is perfectly legal. Long gone are the times when banks tried to avoid early repayment of mortgages, made bonded clauses in the loan agreement, forced to pay fines, charged penalties for those who wished to partially or completely repay the mortgage.