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How can we keep our home loans safe despite rising interest rates?


Within a short period of time, interest rates will rise in Hungary as well, affecting many families who have mortgages.

With the help of the experts at Property.com, we have taken steps to avoid a rapid increase in the mortgage repayment.

Recent MNB data showed that the tax-adjusted core inflation index rose from 3.2% in January to 3.2% in February. Customers with floating rate loans were most affected by this news, but MNB Deputy Governor Márton Nagy said that the tightening of the central bank would come into effect if this ratio continued to exceed 3%. This tightening will increase with interest rates, whether you like it or not, and will mainly affect floating rate loans and personal loans.

This interest rate threat has disappeared with new loans, but nearly 60% of old home mortgages feel this interest rate threat.

Changes of a few percentage points can increase your monthly expenses by several thousand HUF, depending on the type of credit facility.

There is a good solution, let’s seize the opportunity!

If anyone feels the interest rate increase is too distant, it is wrong. Experts are of the opinion that the central bank will have to tighten earlier this year, and it will be too late to change the floating rate loans that have been running so far at low interest rates!

Let’s look at a few options

  • Prepayment or final repayment to reduce the amount of the installment or maturity. By paying off the debt in the form of a so-called early repayment, we close the credit agreement. If you do this before interest rates rise, you won’t have to pay much more for repayment later. Prepayments and prepayments can be made at any time, as long as we have managed to set aside a larger amount or even the entire loan amount. In this case, we will have lower costs because this project has a fee. An early repayment of HUF 1 million may result in the loss of the initial discounts, such as map copy, notary fee and appraisal fee.
  • Another option is to modify the contract. Many banks are recalculating our credit under the terms requested, we may even reach an interest rate fix, the change may affect the maturity and the monthly repayment, but we will be safe. There is also a one-time fee for this change.
  • Debt settlement and debt redemption can still come into play and provide security. The point is to take out a new fixed rate loan. The new loan will be repaid with the floating rate loan, so all you have to do is pay off the details of a secure fixed rate loan.

With a 20-year maturity, you can get a $ 10 million debt collateral mortgage at less than 6% APR and choose between consumer-friendly or market-based home loans.

Good Finance Bank ‘s 10-year MFL home loan is available for a 10-year period at a APR of 5.22%, with a monthly installment of $ 66,140.

Budapest Bank’s free-to-use mortgage loan can be withdrawn with a monthly payment of HUF 79,740 at 6.02% APR!

And Goodbank Bank has a 6.24% APR and a $ 71,700 installment!

The new loan entails new criticism from the debt settlement bank.

Is this transaction worth the money yet?

Definitely!

Our new loan will already start at a higher interest rate than our previous floating rate loan, but in the long run, security is well worth the initial higher costs. It is promising that we can fix a very low interest rate by choosing a new loan, which will then not rise above the legal limit! Be sure to seek the help of our credit brokerage experts to find this!

If you would like to take out a home loan, you are interested in the possibilities of CSOK, you are interested in qualified loans, call our credit brokerage experts to help you with your decision!

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