You can borrow and borrow a loan this way
Refinancing nimble or mortgage
Convert and transfer mortgageWe 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 transferA 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 transferAnyone 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 loansIt 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 creditIn 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.