Is the bank good on credit only? No, look at this!
What’s so interesting is that when you walk down the street you inevitably hear things. And what’s even more interesting is that you can almost always hear the same things, stereotypes. Of course, they all have a basis in reality, but we are well aware that in many cases, just complaining is better than focusing on the solution. Just this morning, we heard one saying, “Credit is always expensive and we can’t get it right.” Now we are going to show that this is a huge mistake.
Why do you consider credit to be paid off?
As we have written in the introduction, such stereotypes generally have a basis in reality. The sentence in the case of a loan may be true because the banks add interest to the loan we have placed. So we really do not have to pay back the money we received, but a higher amount.
The loan calculator even shows you how much of that extra you can expect. Let’s say a total of 13,389,721 for a 20-year $ 9 million loan . The skepticism is that the bank will win us almost HUF 4.4 million. However, this is limping from more places. On the one hand, we would almost certainly not have a flat / house if the bank did not lend us 9 million forints. On the other hand, who said we would take a loan and only pay it back for 20 years? Banks give us the opportunity to improve our own credit.
Home savings checkout is the key
We have in our hands the opportunity to make our home loans significantly better and cheaper , and even the state prefers this endeavor. 30% of our home savings fund payments will receive a state subsidy of up to HUF 72,000 in a given year. As the shortest maturity is 4 years, it is easy to calculate that we are talking about 288 thousand HUF. And that means a lot when it comes to paying off a loan.
We use the Home Savings Calculator and you can see immediately that with a 4 year monthly 20,000 HUF contract you can save 1,300,320 HUF. And we’re wrapping that in our credit.
Credit prepayment for the extra millions
Stay on the $ 9 million 20-year loan with a monthly repayment of $ 55,344. If the above $ 1,300,320 is used for early repayment in the 51st month, our credit will be reduced from 240 months to 198.
We also wrote earlier that we can make several apartment savings within a family, so if we do not pay for one, but 2 for 20 thousand forints, then of course we can prepay for 2,600,640 forints. This will reduce our credit to 161 months. Forints, this means that we have paid a total of HUF 10,834,384 together with the apartment savings (HUF 161 * 55,344 + HUF 48 * 40,000). That means we pay only $ 1.8 million extra for the $ 4.4 million extra space. We won 2.6 million forints .
With 3 monthly savings of $ 20,000, the above figures are even more enticing. Our loan will be reduced to 129 months. Thus, we pay HUF 7,339,376 for repayment and HUF 2,880,000 for apartment savings. This is a total of HUF 10,019,376. Another 8 thousand forints compared to the previous one, a total of 3.4 million forints, not to mention that we paid off the 20-year loan in just over 10 years.
As we promised at the beginning of the article, we showed that we can really do well with a home loan. Of course, accurate planning is required, so contact us! We make such and similar plans for your own needs, so you are guaranteed the best solution for buying a property.