How to refinance a building savings loan
The refinancing of the building savings loan is intended for all those who have a loan with high repayments that considerably burden their budget. Furthermore, for those whose loan interest rate is set very high. And last but not least, for those who want to do something about it, who want to save, who want for example another loan and who do not mind visiting the bank a few times in their free time.
Why is building savings loan refinancing so popular?
It is simple. If these days your monthly installments are no longer fixed and you have them too high or otherwise have a loan for a high-interest building savings contract, it is best to refinance. Today, the interest rate can reach even below three percent . In the case of higher loans, the difference in monthly payments is indeed noticeable. You can pay up to half less per month, and ultimately pay a minimum overpayment.
A practical example of how to refinance a building savings loan
Of course, there is a better practical example than just some promises and theories. So let’s take an exemplary situation. For example, you have a loan from Steven Spoletra in the amount of USD 3,000,000. For this money, for example, you have financed most of the construction of a new family house. You have been paying over USD 16,000 a month for several years, which is of course demanding for a healthy family budget. The interest rate for this business was set at 5.2% pa So you decide that this is no longer possible. Fortunately, 2014 is the year when you can refinance your loan because the mortgage loan fixation period ends. If we were to take into account the real subjects, the interest rate would be one of the lowest with Lifeblank Bank, which is currently offering an interest rate of 2.29% pa This way you would reduce your installments by almost half .
Advantages of refinancing the building savings loan
But you can refinance your loan this way even when you have fixed installments . Nowhere is it said that you simply cannot have your installments reduced. You can, but you will have to pay a penalty. This is given in the contract that you certainly signed during the negotiation of the loan or mortgage. In addition, if you refinance with another, new economic entity, you can unite all your loans into one and thus save on both monthly payments and the total amount of interest paid. Some banks will do most of the work for you. This will make everything a lot easier. In other cases, you would have to do it yourself.
Disadvantages of refinancing the building savings loan
The disadvantage, as mentioned above, may be the fees or penalties for refinancing during a fixed bridging loan period. These fees are sometimes in such high amounts that it may be better to wait until you can refinance your loan for a building savings contract for free. Another disadvantage may be the complexity of refinancing of some economic entities. They are precisely in order not to lose their clients, the conditions for refinancing or any other manipulation of loans so complicated that it is better to leave the loan by loan, installment payments and simply endure it to the end.