At the moment, the interest rates are so favorable that it is attractive for many people to consider refinancing the loan. You transfer an old loan, be it a mortgage or another loan, at a lower interest rate or a different repayment schedule, for example.
Refinancing a mortgage means that you borrow money to pay off your old mortgage and take out a new mortgage with a lower interest rate and perhaps better conditions. If you want to refinance a mortgage to take advantage of a lower interest rate, or a different term, you do pay penalty interest because the mortgage lender misses out on income. So consider carefully whether the costs of the transfer outweigh the benefit it will bring you. You can finance the penalty interest with a personal loan.
Transfer personal loan or revolving credit
You can repay and refinance an expensive personal loan and revolving credit in one go free of charge. You can refinance your loan to, for example, shorten the term. You then pay interest over a shorter period. You then have to pay off the total amount in a shorter period of time, so that your monthly costs are somewhat higher, but the amount falls quickly, so that you pay less interest. You can also transfer credit card debt free of charge.
In addition, you can merge different loans, such as a personal loan, revolving credit, credit card debt or overdraft at the bank, free of charge, 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 merging 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 costs decrease.
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 changes for you after the refinancing of your loan and what the new options are? Then make an appointment without obligation with the credit competitor.