While you are doing your bank administration on a rainy Sunday morning, you see that a lot of money disappears from your current account every month. You take the time to find out where that goes. Water & electricity, internet, telephone and cable television. And of course the home loan, but you also have a nice house to live in. There are also a number of personal loans for a new washing machine, television and a new bedroom. That is why you are red almost every month, because life is expensive and the month is long.
You cannot do much about your fixed costs.
But for loans, there may be opportunities to reduce costs. Now that the interest rate is at a historic low you can use it. The home loan that you took out years ago (at a higher interest rate) could be far too expensive in these current times. You can refinance an expensive loan by changing financial institutions. Note that notary fees may be associated with this (depending on the loan amount) and a reinvestment fee – usually 3x the monthly rate. So if you only have one year left to pay off your home loan, this is not a good idea. However, a home loan with a remaining term of, for example, 10 years can save you a large sum of money.
The personal loan is slightly more complicated.
The loan is usually smaller and is repaid over a shorter term. First of all you have to check whether a fine is charged for early payment. Nowadays that often no longer happens, but check it out. It is more practical and cheaper to combine various personal loans (and perhaps other loans) under one loan. Because the total count is higher than for the individual loans, the annual percentage rate (APR) will be lower. And if you need a little more air, you can adjust the duration. Your monthly payments will then be lower. To know if rescheduling a loan is a good idea for you, it is smart to request various quotes. One lender is not the other,
Every lender nowadays has a simulator tool on the website and with that you can see within a few seconds what you are going to pay off each month. By placing the quotes next to each other, you get an overview of the various options and who offers the cheapest rates. View at least 5 suppliers to get an impression of the cheapest deals. We have already compared the cheapest providers to save you time and effort. You can request a free quote by clicking on the provider and using the loan simulator. You see, it is now easier than ever for whom taking out a loan is the cheapest.