How to renegotiate a loan from fixed to floating, and buy a car with the money saved!
Most likely when you purchased your home you have chosen a fixed interest rate with a maturity of 15 or 20 years. These are the most popular mortgage industry. Even when it axes variables seem to be much more profitable, the average Italian would prefer fixed rate mortgages blocked. This is because the fixed rate offers security to conservative, and most buyers Italian is a very conservative race.
Today, it is time to consider changing this conservative tendency especially in light of new laws that favor renegotiation, moving and refinancing of mortgages and thanks to new online tools that make an immediate calculation of an estimate of the mortgage.
How do? Simple: if you have a home, no matter when you turned on or refinanced your mortgage, think seriously of converting your loan at a fixed interest rate to a variable rate mortgage! We try to analyze the benefits of this amazing opportunity.
The first thing you thought would look like: "Oh no! I do not want an adjustable rate mortgage. I've heard how the rates change with exorbitant rates, and some people even lose their homes. No, no, I do not want to change my fixed rate for an uncertain ".
Indeed, why should risk an upgrade of the installment, when you can keep them fixed for the duration of the loan? The answer is twofold and very simple.
The first part is the most important: the average for the Italians sold his house sometime between four and seven years.
So if there is a possibility to sell or refinance in five years, why fix the rate in thirty years at an interest rate higher than can be achieved with a variable rate mortgage?
The second reason to choose a variable rate mortgage is really simple: interest rates are also a lot lower than fixed rates. And since these rates are fixed for a specified period, usually three to five years before being updated, there's really no risk. In fact in most programs at a floating rate, the interest rate is not updated on a monthly or yearly (although programs with these types of refresh periods exist at rates significantly lower).
Considering that if rates were to rise excessively variable at the end of the period, now there is the possibility to renegotiate the mortgage or move with ease, why not move right away and start saving and to make other use of the money that would otherwise end up in the interests of the banks ?
Keep in mind that the first mortgage to the French law the extinction of the interest, then your money will not even climb the residual value of the property mortgaged loan, as per the amortization schedule, but simply to pay higher interest rates.
This is evident by calculating the different types of home loans with online tools to realize significant savings in personnel and the order of thousands of euros.
Think about it! You stop using your money to pay exorbitant bank interest and use what you save to buy yourself a car, make a vacation, or invest in more profitable operations: the risk is zero and you can always make a mortgage quote online , taking in mind that you should think about a time scale of a few years, not the duration of the loan, because you will always be time to renegotiate the conditions in an increasingly favorable for you later.
Author: King
