If you don’t know what a loan consolidation is, then this article is for you. consolidation – means transferring a loan elsewhere, preferably where the conditions are better. Either because of the interest rate or because of other parameters, such as the maturity of the loan. There may be a lot of reasons.
When can I consolidate a loan?
Here it is necessary to distinguish what loan. Whether it is a classic consumer loan or a mortgage. Consumer credit is more often used to consolidate loans than consolidate one loan. Simply combine multiple consumer loans under one big one. This repays one installment that often has better interest rates. You can do such consolidation almost anytime.
Mortgages are different. It also depends on when the mortgage was signed or. when the interest rate was changed for the mortgage, ie re-fixing. Without a penalty, the mortgage can be consolidated just as the interest rate changes. The bank can not charge you for this, and you can with impunity leave the existing bank and go elsewhere.
Does it even make sense to leave?
For mortgages, this is most often due to the above-mentioned interest rate. You can watch the latest developments on Hypoindex . Accordingly, you could guess how interest rates will continue to develop. However, according to current assumptions, rates will go up in 2019. But it may not always be about the interest rate. Try to compare the so-called fixation costs. More about this topic here .
Do you know the terms?
You can write about this subject infinitely and I believe that you have to get up to it. It just needs a specialist who can help you in this way. Well, acknowledge that most of us do not repair the car at home in front of the house and go straight to the service. That should be the case in finance. Tell the experts, this will be your best choice. And you know what, use the form below. Write what worries you and we will lighten your head.