Vladimír Urbánek (Kurzy.cz)
Mortgages  |  April 16, 2013 15:45:01

Year ending expensive fixation, refinancing a mortgage can be obtained about 2.5% lower interest

During 2013, ending a three-year mortgages fixation of 2010 and five fixation in 2008. Comparing the average interest rates on those years with current interest, we find that the rates are now up to 2.5% lower. Savings from refinancing so, according to experts on the order of thousands per month. Here are some tips that will refinance close enough.

Refinancing has become in recent years an important part of the mortgage market. Banks compete not only for new clients but also clients who have some time to repay the mortgage and end them fixed interest rate. "If this all refinanced mortgages, which ends fixed interest rates would increase the volume of mortgage loans of up to CZK 100 billion. Clients are currently confronted with offers of interest from 2.59%, which is very attractive for them, "says Jan Kruntorád situation, Chairman and CEO of Cheetah Finance, which is engaged in consulting in the field of mortgage loans.

Change is easier bank, banks comes with concessions and bonuses

People in the initial mortgage refinancing benefits primarily from the fact that you can choose from the current market. While it does not have to worry about additional costs, such as fees for loan processing and a new estimate of the property.In the fight for clients, banks coming up with new products and the various actions that any refinancing costs suppress. Some banks, for example, make do with the older estimate of the property. Often it is also not necessary to prove when refinancing income and household expenses. In the competitive rivalry comes banks but also other bonuses. Offers clients need special premium if they maintain a certain fidelity, sometimes the repayment period of the loan. The market may be encountered with the fact that the refinancing is for a limited time offered even lower rate than would be achieved by the new client.

Refinancing reduces monthly payment

If we compare today's interest rates with those for the last 10 years, it is clear that at present rates are at historic lows. This is for people repaying a mortgage loan ideal opportunity to look at competitor banks, what rate they can offer. Thanks to low interest rates can save on monthly installment to be in the order of thousands of crowns. Especially if the banks' clients in this five-year period ending fixation. In 2008, the average rate is, according to experts close to 6%. Today, around 3.2%.The specific calculation on the online calculator Gepard Finance then shows savings of up to CZK 2,969 with a rate starting at 2.59%. In that calculation is to refinance the loan in the amount of 1.8 miles . CZK with a maturity of 20 years and counting with the original rate of 5.7%.

Refinancing can be extended maturity

Refinancing is also a good opportunity to extend the maturity of the loan, which can lead to further reduction in monthly installments. For example, extending the maturity from 20 to 30 years will reduce the mortgage refinancing of $ 1.8 million installment from 9617 CZK to 7197 CZK.   The change is due to be reckoned with but a fee for amendment to the credit agreement. Definitely is therefore recommended to make this change when refinancing when the new bank can arrange a completely new conditions. With the change of maturity of the loan should meet the demands of the existing bank client.When you refinance you but the client can specify the length of the loan maturity being without a change fee terms.

Tax benefits remain even when refinancing

The law allows the deduction of mortgage interest on taxes. This year, you can deduct interest on up to 300,000 crowns. Next year will be reduced by the amount of 80,000 crowns.Refinancing mortgage tax relief in this bank client does not come, even when repeated refinancing. The Ministry of Finance is modified formulation of the law, which said that the need for housing also means repayment of a loan used to finance housing taxpayer needs. This resulted able to refinance only once, because the next refinancing would no longer be classified as a repayment of a loan used to finance housing taxpayer needs. Ministry of Finance, however, his instruction of these interpretative difficulties removed. The need for housing is currently regarded as the so-called subsequent repayment of mortgage loans, which were refinanced previous mortgages. The tax relief is thus repeated refinancing comes.

Jan Kruntorád

Chairman of Cheetah Finance


About Cheetah Finance

GEPARD FINANCE is a specialized brokerage firm, whose main activity is consulting in the area of mortgage lending and complete processing of credit and insurance products. Professional brokers provide their clients free mortgages, construction loans and insurance. Currently has a franchise network of 110 GEPARD FINANCE functional trading venues, ensuring easy accessibility and servicing of clients all over the Czech Republic and Slovak Republic. GEPARD FINANCE in 2011 became the biggest mortgage-brokerage firm in the Czech Republic and is a founding member of the Association of Mortgage Brokers.

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