Refinancing a mortgage means that you borrow money to repay your old mortgage and take out a new one with a lower interest rate and perhaps better terms. If you want to refinance a mortgage in order to benefit from a lower interest rate, or a different term, you do pay penalty interest because the mortgage provider misses out on income.
So consider carefully whether the costs of relocation outweigh the benefit that it provides. You can finance the penalty interest with a personal loan.
Transfer personal loan or revolving credit
You can repay and transfer an expensive personal loan and revolving credit in one go free of charge. You can refinance your loan to, for example, make the term shorter. You then pay interest over a shorter period of time.
You then have to pay off the total amount in a shorter period of time, which means that your monthly payments are somewhat higher, but the amount drops quickly, so that you pay less interest. You can also transfer a credit card debt free of charge.
In addition, you can combine various loans free of charge, such as a personal loan, revolving credit, credit card debt or overdraft at the bank, so that you pay less interest. You often pay a higher interest rate for various small loans than for a large loan. You can save money by combining several small loans into one large loan.
The small loans are repaid and you only have the large loan. This provides an overview and ensures that your monthly payments fall.
Refinancing a loan can save you a lot of money. We are happy to calculate what you can save with the refinancing of your loan and whether you are still eligible to borrow the same amount, based on your payment behavior.
Do you have any questions about, for example, what will change for you after the refinancing of your loan and what the new options are? Then make an appointment without obligation with the credit advisors of Good Financee.