To change the lender or not? - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
Banks increase interest rates. Every day higher and higher. In search of a more benign financial conditions...Should I change the lender?Banks increase interest rates. Every day higher and higher. In search of a more benign financial conditions of the borrowers reasonable question: is it possible to change the Bank and "move down" to a more favorable repayment terms already have credit. Is it realistic to do this in the current economic conditions?Even if you managed to find a Bank that agreed to refinance the debt, don't hurry. Before changing the creditor, should carefully review with its terms. After all, if it were that simple, then the borrowers would do that ran from Bank to Bank. On the other hand, it is clear that no Bank will operate at a loss. So he gets his profit in another form. For example, in the form of monthly fees. So the bet is not an absolute criterion conditions.In addition we also need to calculate whether it is profitable refinancing in each case. For example, according to tristar.com.ua for the loan of $20 000, taken at 13.5% per annum and is payable for a year, a rate increase by 2-3% (in the absence of monthly fees), still cheaper than refinancing. According to experts, in this case it will only lead to additional costs. After all, according to new will have to pay and notary services, and insurance on the hull, and execution of credit documents.In addition to your loan agreement may stipulate a ban on early repayment. If you want to repay early, have to pay a fine. Refinancing is the same loan, pays not only the client, and the other Bank. But for the first lender that doesn't matter, so the costs will fall on the shoulders, or rather, on the "pocket" of the borrower.If you still decide to issue a new contract, you will need to provide a full package of documents plus the loan agreement, the pledge agreement and the certificate of state debt (issuing initial Bank). But remember that, according to experts, this all makes sense, if the difference in interest rates will not be less than 3%. If less, it is best to contact your Bank with a statement, say, asking to lower the rate, since I вЂ“ borrower with good credit history, etc.