All the questions you should ask yourself before moving a mortgage portfolio
You are right, the first query should be, is it possible to pay less cash for my mortgage loan? Ought to we move a mortgage profile?
Seriously, perhaps you have wondered if it is possible to pay for less money for your mortgage loan? I actually congratulate you. Many people usually do not. It is as if they considered that, once the mortgage loan has been signed, the business could not end up being modified. My recommendation is straightforward: From time to time, it is important to analyze just before moving a mortgage portfolio. Excellent simple guide that can help a person, I detail it beneath:
1 . Create a reminder on your appointments
Does it sound ridiculous? No, it is not. Carl, a customer, scheduled his agenda to ensure that every June 15 till 2027 he reminded your pet of this task: “Compare the particular conditions of the mortgage loan plus verify if I am carrying out a good business”. It is likely that for a few years my recommendation that the loan is in good shape. Plus, it is likely that at some point I will let you know that the scenario has brand new perspectives and it is worth critiquing the figures. Let’s carry on.
2 . Exactly what has changed in the country, in the town?
The financial conditions of the country, from the place where you have your house bought with the credit, are usually affecting your business. It is accurate. It is not necessary to be a professional economist, but it is necessary to pay attention. The law of supply plus demand may be causing fascinating changes in the financial sector, that you could take advantage of.
3. What has changed in your lifetime?
Quickly, we all evaluate your conditions. Alter of work, salary, marriage status. Have your income enhanced? I ask because probably your risk profile is much better now and you could get one more rating at the bank. Which could affect the rate. Let’s carry on.
4. What exactly is your rate?
We are always aware of the news that will affects interest rates. Perhaps, the financial institution of the Republic, lowered prices to incentivize loans plus higher consumption. It would be a great time to study a transfer! We have been probably talking about a lot of money. Naturally , this is only the yellow, security alarm signal, which asks to carry on investigating further.
5. What does an exchange imply?
Good issue. A mortgage transfer also consists of paperwork and expenses. Many consumers resent presenting the documents requested by the bank. It appears to me that, for a great opportunity, it is worth collecting the papers and investing the necessary time.
The crucial issue is the associated with the expenses of the exchange. Suppose, in effect, there is a financial institution that offers a better rate. The financial institution is willing to pay another bank the total amount you owe and begin a new business. That is, it is crucial to cancel that home loan and open a new 1. This legal process comes with an important cost that you need to understand before signing the new company.
6. Just how much do you earn if you exchange the loan to another financial institution?
Before accepting, take a look at review the credit situations they offer you. Keep the concentrate on this: the idea is to make money, saving on monthly costs.
- Credit score rates in Colombia
In Colombia, the average rate of interest of banks at the end of 03 in the consumer portfolio had been 19. 78% annual money and the credit card at the same reduce was 31. 24%. To get VIS housing loans, the regular rate is 12. 97%.
The rate with this type of credit is provided separately depending on whether it is required to acquire a house or to create it and if the credit score is destined for an interpersonal interest housing (VIS) or perhaps a non-VIS one.
On the other hand, the credits within pesos correspond to those that are usually established with a fixed price and that have a fixed charge during the credit time, as the credits in real worth units (UVR) have adjustable fees, following the UVR qualified by the Bank of the Republic.
Are you very clear about the value of insurance? Keep in mind you need full property insurance coverage and recommended life insurance in order to debtors
- Let’s check the fees
The number of outstanding costs must be the same in both instances. That is, if the bank owes you 120 installments these days, the new bank will estimate that you will pay the new mortgage in 120 installments. Furthermore, that both banks estimation the same number of annual charges, that is, 12 or fourteen, as agreed. Finally, find out if they grant grace time period. Which of the two banking institutions offers a monthly fee worth, including all expenses, cheaper?
- Let’s take a look at other conditions
It is very important to confirm that the amount approved by the lender that
take the transfer is corresponding to what you owe; that the agreed time
for the transaction of the fees it is the one which suits you and that the new financial institution
authorize, without cost, to make additional payments (amortizations).
And finally, make sure that the bank is presenting most,
all the expenditures. How much will you earn?
We are ready to the actual accounts. Add the costs of the transfer: how much you will need to pay for notarial and sign up expenses, how much for the financial institution transaction tax and financial institution expenses. Suppose this worth is X.
Now, determine the cost savings you would achieve with a much better rate. If at the end of the particular loan, this savings is definitely greater than X, good news! You can earn money with the loan exchange.
How to evaluate mortgage transfer options?
We know that the more details you have, you can do better company.