You can borrow and borrow a loan this way

You can refinance your expensive loan in 2019 at a lower interest rate. Transferring your loans to a cheaper loan can save you a lot of money. You can refinance a mortgage, but also a regular loan or credit. Borrow money to be able to transfer an expensive loan with less costs, but also to combine loans. Pay off other debts. In this way you also make an early repayment possible. Calculate your benefit yourself. A penalty interest is possible with a mortgage. Always compare your benefit with any extra costs that you must incur ...

Refinancing nimble or mortgage


Convert and transfer mortgage

We are talking about converting a mortgage if you switch from one mortgage type to another, convert an interest-only mortgage. A mortgage can be transferred, for example, when the fixed-rate period is over and a new period has to be agreed with a new interest rate.

Mortgage transfer

A mortgage transfer is therefore regularly the order of the day. That means new negotiations about the terms and conditions of the loan, interest, the new term and the amount of penalty-free repayments. If you do not like the bank's extension proposal, you can transfer the mortgage to another mortgage provider. And those banks are happy to see you, because the competition in mortgage lending is intensifying. Not much is happening on the mortgage market at the moment, so banks are fishing for new customers. Those who transfer at the end of a fixed-rate period are then sought after customers. Take advantage of this competition to further lower your mortgage interest.

Expensive loan and mortgage transfer

Anyone who took out a mortgage a few years ago and is now looking at a lower interest rate is quickly inclined to take out a mortgage. That a penalty interest sometimes has to be paid is also taken into account. After all, the penalty interest can easily be included as an additional mortgage interest deduction and the new low mortgage interest does the rest. But also a normal loan that is too expensive or fragmented loans, you can usually transfer to a new loan.

Refinancing existing loans and merging small expensive loans

It is often cheaper to take out a new loan, which also includes the old loans. With this transfer you are usually cheaper. Moreover, you can switch from multiple loan providers to 1 provider and the possible administration costs will also be lower.
Example calculation with the benefits of refinancing a loan:
Suppose you have two different loans, loan 1 and loan 2. The conditions are as follows:
  • loan 1 of 10,000 euros at a 15% interest rate,
  • loan 2 of 5,000 euros at 5% interest.

What you do is take out a new loan of at least 15,000 euros at the current interest rate. People often take a little more money as a new loan. Suppose that interest is 5%. Then you pay interest on the new 20,000 euros loan in a year, while you pay off the other two loans. You paid the amount of 1,750 euros in interest on the two other loans. The direct benefit is then 750 euros per year. You also have an additional 5,000 euros in your hands. Make sure that the interest on the new loan is fixed for some time, so that you do not run the risk that the interest can be raised quickly.

Advantages of rescheduling loan and credit

In general, lending a loan only offers benefits. You have a much better overview of your loans and are cheaper. Benefits:
  • The new interest rate will be lower, which means that you can repay old expensive loans and therefore get lower monthly payments.
  • Because you borrow extra and buy off the problematic loans, the bank is more willing to lend you money.
  • With a higher amount, a lower interest rate is charged than with a low amount.
  • This is the chance to find a lender that appeals to you and has more favorable conditions.

Points to consider when transferring a loan

Always ask for multiple quotes and compare the offers from the various credit providers well. For example, pay close attention to the following points:

1. The penalty interest

The transfer of a loan can be accompanied by a fine from the old loan provider. See if the new interest rate including fine is cheaper in the long term.

2. Impact on insurance

Do not allow yourself to be confronted with all kinds of insurance policies that are not necessary or desirable, but that rerouting will make it extra expensive.

3. Request quotes from different companies

Request sufficiently different quotes on the internet and pay attention to companies that fall under the same parent company.

4. Pay attention to an interest rate

Do not opt ​​for a cheap interest that will be increased considerably after a short time. Read the conditions carefully.

5. Duration of the loan

The term of the loan can help you to keep the monthly costs low. The longer you spend the repayment over time, the less you pay per month. You pay interest on the remaining debt for longer and longer.

6. 50% interest-only repayment is permitted

Since mid-2011, stricter rules apply for the granting of a mortgage. For example, only 50% of the value of the house can be financed with an interest-only mortgage. This is not a problem at your own bank because it does not have to apply the new rules to an existing loan, but another bank is likely to use the stricter standards.

Conclusion when transferring or renewing a loan in 2018 and 2019:

The most important factor besides borrowing at a cheaper interest rate is probably the penalty interest. If a penalty interest must be paid, you must see whether it outweighs the interest benefit when the loans are aggregated. View how many years you will earn back the penalty interest. A penalty interest rate of 1% and a lower interest rate of 0.5% combined means that you will be cheaper with the new loan after two years.

Small credit, flash loan

For those who want to override other obligations such as being red, some providers have specially developed the small loan. This is a revolving credit of up to 5,000 euros, whereby the amount you use to repay other loans can be financed cheaply. All in all a very smart development that many people can easily benefit from. Ferratum is known for its flash loan.

Loan refinancing loan in 2018 or 2019

Transferring many small loans to one larger one is often wise. There are many providers on the internet who can help you further. Always request a few quotes to compare the offers well. Also consider the small credit. Anyone expecting an interest rate rise in 2019 will close in 2018 and will therefore not wait too long. Be advised on this.

Video: Bank, Borrow, and Invest. MoneyLion (April 2020).

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