With the drop in interest rates you can start to make sense transferring your credit home to save some money on your monthly installment. In this article we will throw you some points of reflection.
How to Analyze the Transfer of a Mortgage?
The transfer of a housing loan will depend on two variables. The first relates to the value of the spread . The second considers the costs associated with the transfer , which depending on the cases may be significant.
The First Step is to Evaluate Your Financial Situation
As we usually refer to here on the Snowball portal, the starting point for any savings solution is to make a diagnosis of your financial situation. Of course the promise of spread reduction is very tempting. However, not all processes are approved, so it is important to realize if you have the conditions to change banks.
Interest Rates Remain Very Low
As is well known, the EU Credit interest rates are very close to zero and are expected to continue for some time. Additionally, after several years without granting credit, traditional banks desperately need to lend money (the alternative is to pay to lend money to the Central Bank). Thus, the spread of housing loans, whether transfers are new contracts, have been falling significantly. This fall could mean large tens of euros saved every month.
Know the Current Conditions of Your Mortgage
Before consulting the competing banks you should know what the current conditions of your housing credit. We speak not only of the spread but also of all the contracted products / services – for example, life insurance, multi-risk insurance or other products such as credit cards and the like. You may have no concept but in several cases the monthly life insurance payment is higher than some bank benefits …
In addition to these data, you should seek to understand the market value of your home and the total amount owed . Be aware that banks currently borrow 100% of the value of the property, preferring something close to 80%. This means that you have to give some initial input value. Assuming that house prices have fallen in the past and that many people have made a consolidated credit using their housing … this point is pivotal.
Simulate the Credit Housing Spread
To simulate the costs of your home credit you can search any bank simulator on your site. Alternatively, you can read the reviews we made of the best bank for housing credit or use the mortgage simulator housing.
It is true that we will have to do a more thorough study (without any cost or commitment) to fine-tune the simulations, but with the completion of the form you will be able to submit your application in several banks and thus obtain negotiation power throughout the process.
See Transfer Costs
Finally, you should analyze all the costs associated with the transfer of your housing credit. You can have a commission for early repayment (between 0.5% and 2% of the amount owed, depending on whether we are talking about variable rate or fixed rate credits), costs with new deeds, property valuation, among others.
Some of these costs can be heavy. However, you can take advantage of some ongoing campaigns where these commissions are exempted or where banks support part or all of the transfer costs (another benefit of filling out the housing loan simulator is accessing our protocols).
Prepare Your Case With Caution
Finally, for the purpose of reducing the housing credit spread, we suggest that you prepare your case with caution. You should be aware of your effort rate, the relationship between the loan and the collateral offered, your income stability, and so on. If you have questions do not hesitate to use our contacts for any clarification.
And ready. Changing banks can be a huge savings . And as we all want to save money without much effort … maybe it makes sense to realize if we can help you save!