Many of us talked to colleagues inside and found that there was an unfortunate amount of talk about the interest period. But to be honest, credit has few more important factors than this. It can have a significant impact on how much we repay on your loan. Let’s get to the bottom of things!
What does this concept mean?
The easiest way to define the interest period is to say that it is a security period. During this period, if you break or break, the monthly installment of your credit will not change. There are situations in which such an option can be worth gold. In fact, they have been in the past. Imagine the central bank base rate suddenly rising from the current record low of 0.9%, say nice gradually to 3% . This means that if you run out of interest rates (say for an extremely short 3-month period), the interest rate on your loan will probably increase by 2%.
With mortgage rates APRs currently around 3-4%, all we have to do is look at the difference between a 5-6% interest rate on a loan. Let’s call the numbers for help!
Well, a lot of that 2% plus interest
First of all, let’s count on the calculator of loan.hu and see what terms we can borrow at the moment! Let’s base it on HUF 9 million over a 20-year period and the much-mentioned interest period should be 5 years.
This way, you can get a monthly installment of $ 50,592 . This is very good and the APR (which includes all costs, including interest) is 3.24%.
If the interest rate on this loan jumped to 5.24%, the situation would be very different. Specifically, our monthly repayment is HUF 60,596 . This means that you will pay an extra HUF 120,000 a year, or HUF 1.8 million for 15 years. Well, this is the money that is better if you stay in your pocket.
Opt for a fixed loan for a longer period of time
We hope that with this short calculation you have achieved the desired result and that you will pay more attention to what interest rate loan you are voting for. We are not saying that you should always opt for a fixed loan for a longer period of time, but to think carefully. We’re here to help, so contact us! You will not regret it as you will gain a wealth of useful information.