It is worth paying attention to which of the wide range of home loan facilities borrowers require, as with a $ 8 million loan, the difference between the cheapest and most expensive loans can be 6-8 thousand a month and 5 million in the long term compilation.
According to Good Finance experts, more and more people are interested in fixed-rate mortgages for longer periods, 5 or 10 years, as they are more predictable and, in the long run, put a smaller burden on the household cash with the expected increase in household income.
The demand for housing loans
The housing market has picked up in the past year and a half, and the demand for housing loans has also increased. According to Good Finance, which belongs to the real estate group, 43% more people were interested in home loans this year. Demand for home loans may help in the coming period, with much lower interest rates and full credit rates than in previous years.
However, it is worthwhile to look closely at the wide range as there may be significant differences in the monthly repayment installment and the amount repayable over the entire term. Peter Gergely, a loan expert at Good Finance, belonging to the real estate group, put forward an example that when he applied for one of the cheapest 20-year home loan of 8 million forints in mid-April last month, his monthly installment was just over 49 thousand HUF.
The most expensive home loans
while the most expensive home loans had the same amount of 55.6 thousand HUF. That is, choosing a cheaper loan was more than HUF 6,000 a month for almost a year, and more than HUF 72,000 a month for a total of 12 months.
According to Péter Gergely, assuming no change in the APR, a total of HUF 11.8 million is to be paid over the last 20 years for the cheapest loan taken in April, and the other over HUF 13 million, which is a difference of more than HUF 1 million. . Péter Gergely emphasized that this is a theoretical calculation, since credit burdens can be fundamentally influenced by changes in interest rates, which are fixed by banks for different periods.
In his view, the focus has been on shorter-term floating rate loans of 3-12 months in recent years, but interest in longer-term fixed-term loans of 5 or 10 years is growing. This is because they are more predictable than 3-12 months variable-rate loans , but there can be major differences.
Mortgages with a fixed interest rate of 5 years
One of the cheapest 5-year, 8-million-dollar mortgages with a fixed interest rate of 5 years was available at Good Finance in the last week of May, according to a current rate of 5.3 percent, which means a repayment of nearly 54 thousand HUF. The annual percentage rate of one of the most expensive schemes was 7.3 percent, which means a monthly expense of HUF 62,000, and the repayment installment for both loans will not change for 5 years.
“There are also differences in the interest rate fixed for 10 years, with the monthly repayment installment of one of the cheapest 8 million housing loans with a term of 20 years being more than 56 thousand forints and the most expensive one more than 63 thousand forints. million. Therefore, it is definitely worth comparing the offers of banks – even with online loan calculators – and not just going to our cheese bank, because they are not at all sure that they offer the cheapest loan and can lose millions.