A mortgage is a loan for many years. It is a financial burden that does not pass quickly, but allows you to have your own flat or house. To fully enjoy it, you have to pay off the debt, installments, and interest. Sometimes it seems impossible, but if you stick to certain rules - you will do it!
Make an excess payment of the mortgage
It's nice to get extra cash, but when you have a mortgage, don't spend it on temporary pleasures. Pay raises, awards, and payments for overtime should at least partially be paid to the bank to cover credit installments. Making an excess payment allows not only to pay off the liability faster, but also is a security for the future. You never know when your financial situation may change and it will be more difficult to pay off the installments. In addition, the bank will convert the loan and allow you to choose whether you want to shorten the loan repayment time or maybe you will prefer to reduce the current installments.
Check the operation of the bank
Taking a credit from one bank does not mean that you have to complete its repayment in the same institution. When you take out a mortgage you look for the best one, you find it, and it seems simple. However, the situation on the market, the economic situation may change within a few years and what was previously beneficial ceases to be so in the economic situation that has changed. For this reason, it is worth checking credit offers all the time, assessing whether other banks offer something more advantageous. If you manage to find a better offer, you can refinance the loan, i.e. transfer it to another bank. In addition, it is also worth checking your own loan on a regular basis to be sure that the bank does not raise fees, not without informing about it.
Save money on credit
It is difficult to pay off your mortgage and have savings, but it is worth your effort. It is a security measure in case of difficult moments, e.g. sudden loss of financial liquidity. An unpaid installment can have serious consequences in the entire repayment, so it is good to have a financial reserve that cannot be touched, intended only for emergencies. The minimum amount of such security should be three times the salary you receive, but it would ideally if the savings were higher.
Contact the bank
Mortgage repayment without any difficulties and hassles is primarily ongoing contact with the bank. Neither e-mails nor letters from the bank should be ignored. The e-mails often contain information about changes in fees and it is worth being up to date with them, while the bank sends reminders for overdue installments by mail. Failure to do so may be unpleasant and result in a significant penalty interest.
Mortgage repayment ahead of schedule
Mortgage loans are spread over many years. However, this does not mean that you cannot pay them off earlier. On the contrary, it is worth trying to pay them before the indicated time. This is due to the fact that the credit agreement usually provides for interest first, then principal. If it is repaid earlier, it is impossible to charge further interest and it facilitates the recovery of some bank charges related to the incurring of a loan obligation.
Repayment with an online exchange office
Foreign currency loans, e.g. in francs, were very popular. If you already have such a credit, pay it back with currency from online exchange offices. This is a more advantageous option than the bank conversion of zlotys into a foreign currency. Banks inflate rates and as a result, more money is paid for the exchange. Buying currency in an exchange office and transferring it to the bank is completely legal and possible, it is good to do this and save on subsequent deposits.
Pay off one credit
KredytA mortgage, and then another loan, and another one for completely different purposes, this is not a good solution. Especially if you do not have a huge financial surplus every month. The more loans, the more installments to be paid off, which can lead to a crash in your home budget. For this reason, if it is not really necessary, focus on one loan and do not take another. Only after paying it off, check your financial possibilities and then take another one. This will help maintain financial security.
Inform the bank about problems
When it comes to a situation that the installment repayment on time will not be possible for you, do not hide it from the bank. Contrary to appearances, the bank is not an institution that only waits for unpaid real estate and prefers that the installments are carefully regulated. If you have a problem, contact the bank, work out an agreement and get smaller installments or deferment of their repayments for a specified period of time.
Insure your property
As part of the mortgage contract, a property insurance contract is always signed. It sounds good, but it is mainly to protect the bank, so an additional policy is a good idea- the one that will guarantee the payment of compensation to your own account, and not to the bank account. This will provide additional security in the event of problems with repaying obligations.
Collect and store documents
Documents related to the mortgage from the moment it is taken out to repayment should be taken seriously. It is best to put all of them into one binder. For security reasons, documents can be scanned or photographed and stored on the internal or external drive of the computer. This is important for you as a loan holder, but it can also be beneficial for your heirs.