As we have already discussed (here) that while you have a loan, it is best to invest it early because the interest on your savings is sure to be less than the interest you pay on your loans.
But how many penalties does the bank charge for early or early repayment of your loan?
He had been charging as much as he wanted
Not so long ago, he had been charging as much as he wanted. Then, for loans started after March 2010, the maximum fee was already fixed, and in December 2010, if I interpret it correctly, it was extended to loans that were started earlier. (There are banks that interpreted this differently, and the HFSA fined it a couple of million forints.)
(Update: I read the banks’ announcements on how much they charge. I found the amounts mentioned in the article everywhere. Then a friend of mine explained that it is not obligatory for banks to redeem their previous loans at this price, but they do more. and include the closing fees on your debit loans in your “no longer sells” ads. The redemption cost is a sure point.)
Prepayment and prepayment fees depend on whether you are borrowing your own money or from another bank’s money, and whether you are bank-financed or mortgage-funded.
If you pay it off with your own money, the bank can charge you up to 1% and up to 1.5% if you have a mortgage.
If you redeem it from another financial institution, the maximum fee is 2 or 2.5%.
Some have a minimum fee, e.g. 1.95% plus 35,000 forints, but up to 2%
If it’s been two years since you borrowed it and you haven’t repaid it, and your prepayment is less than half the amount you borrowed, then you can repay it for the first time for free.
If you have not paid off in the past year and your outstanding debt is less than one million US dollars, you can still pay it off in part or in full for free.
If the reason for the early repayment is that the terms have changed unfavorably for you, you still have the right to prepay your loan, unless you are a mortgage bank because it costs 1.5%.
Well, that was the workaround
If you want to invest at a relatively lower risk, you might also want to look around the mortgage market. to write a market outline of how much you can buy such mortgage letters Since only high quality loan real estate may be behind it (see also subprime crisis), you do not take too much risk. It also has an annuity, which pays capital and interest continuously for 10 years, plus monthly payments for a good pension. So, I’ll write about that soon.)
Returning to our original theme: As you can see, banks cannot limit the number of times you use the prepayment option, as the 1% penalty is usually worth it, cancel as much and as often as you can.