We humans often tend to make purely emotional decisions, even when we need to rationally solve something. Borrowing is exactly such a story where we have to listen to our minds much more. You can make up to millions of dollars if you read this article.
On credit, the familiar is not an advantage
Often, we choose a particular bank because a friend of ours works somewhere. He obviously thinks their credit is the best on the market, and he will probably recommend it to us. But what do we do better than a stranger doing our credit there. We can’t get more credit, we won’t get the credit and get the loan out sooner. Not to mention that the odds of working out of 32 banks are exactly where you find the best credit for us.
The same is true with our account keeping bank. We may get some discounts, but it is far from certain that they will find the perfect solution. Even if a financial institution has a good retail current account, you may not be able to provide it with credit.
How do you compare many offers?
Fortunately, in today’s modern world, we don’t have to go around all the banks to get the right credit calculations. You don’t even need to visit the banks’ websites one by one and do the calculations. We use a calculator that compares and even ranks loans available to us in one place. Click here and give it a try , you will not be disappointed.
There are huge differences in repayments
Let’s calculate a specific loan! Let’s take a loan of 12 million HUF for 25 years and see how the individual installment installments develop!
More interestingly, while the first ranked bank (anonymous) comes out with a monthly payout of $ 50,454, the lowest ranked bank pays $ 75,565. Simply put, we can run into a repayment installment up to 1.5 times larger. The total maturity is 15,349,670 forints versus 22,689,390 forints. The difference is quite drastic.
Let’s optimize the maturity!
There are many who do not even realize how important a loan is to a loan . Then, with the help of the calculator, we can determine that we are thinking very well. Let’s stay with the previous example, that is, we charge 12 million HUF. We know that this means a minimum repayment of $ 50,454 per month over a 25 year period, and $ 15,349,672 in repayable money. Over a 20-year period, they change to HUF 60,308 and HUF 14,659,315. This means that regular repayments increase (by HUF 10,000), but the total amount repaid decreases by HUF 700,000.
This means that you may want to choose a short term. The difference is even more pronounced over 15 years, as the repayment will increase to HUF 76,834 per month, whereas we will receive HUF 13,987,293 from the bank during this period. Although the monthly repayment is higher by HUF 26,000 compared to the 25-year term of the fund, we still save HUF 1.4 million. And we haven’t even talked about saving a loan (securities account, home savings) to make it even more cost-effective.