Good Finance estimates that with the replacement of a $ 8 million home loan to be repaid for another 15 years, the lowest risk of a new, risk-free home loan with a fixed installment can be paid off from $ 63- $ 64 a month.
Good Finance’s proposals for housing loans, which are more comprehensive than before, aimed at mortgage lenders and a safer home loan market for the Hungarian economy, point to the proposals of the National Bank of Hungary’s latest 330-point competitiveness program. There are no specific rules yet, but rather proposals for the next period.
Good in many ways
One important change may be in the future, the expansion of loan conversions that you can use to substitute existing housing loan borrowers, their variable rate home loan fixed number of years or until the expiry of the term interest rates, thereby fixed home loan.
According to one central bank proposal, facilitating, stimulating and shortening lead times for loan redemptions would be beneficial to retail loan repayers and could increase competition in the banking sector. According to Good Finance , reducing the administrative burden associated with loan replacements is also a good thing, as mortgage lenders would be more secure if interest rates started to rise once.
How much does a post-mortgage loan cost?
According to Good Finance , a home loan with a principal debt of HUF 8 million and repayable for another 15 years can now be converted into a home loan with a fixed interest rate of just over 5 percent, based on the best deals at the end of February. Thus, the repayment would amount to HUF 64-65 thousand per month until maturity.
According to Good Credit, Good Finance loan expert, the interest rate on a fixed monthly mortgage loan repayment after a loan redemption may now be higher than a floating rate home loan that may have to be replaced. At the same time, the interest rate and repayment installment of the latter mortgage loan may increase significantly by the end of the term due to possible interest rate increases due to the changing economic environment.
Increases of up to several percentage points are conceivable
Which would impose a significant additional burden on a household. There is no such risk with all-time fixed mortgage schemes, as they eliminate interest rate risk and are therefore safer.
Good Finance forecasts that demand for loan redemptions is expected to increase in the next period, as debtors swap many floating rate loans for fixed-rate schemes.