May will be the month of refinancing in housing loans!
In May, demand for housing loan refinancing and housing loan restructuring increased again with the successive interest rate cuts. The lowest mortgage interest rate in Crawlie family.tr in 10 years fell to 0.67%. In 5 years, this rate reached 0.65. The housing trend, which maintains the downward trend, is now at the lowest levels in history and nowadays, citizens are taking a breath at banks. Those who cannot get a low enough offer from their own bank find a solution in housing loan transfer.
But for which loans has refinancing become advantageous? The answer depends on the remaining principal and interest of the current loan. However, it is a fact that a certain range of credits will make a definite profit in structuring. We wanted to address the most common situations in this regard.
A) Mortgage Loans Used 1-2 Years Ago
If you used a loan of 0.75% or more 1-2 years ago, let us take you to calculate your profit:
If mortgage loans with a maturity of 1 to 10 years are used at a rate of 0.75% or more, they can be profitable by re-transfer. Since the interest rates in 2011-2012 are at these levels, most of the loans used in those years can be refinanced today. For example, 2 years ago, 0.75% of the housing loan received 100,000 TL is now refinancing 2,000 TL profit. The higher the interest rate of the existing loan, the higher the profit.
For each 1 point above 0.75% profit is about 500 TL. In addition, the higher the principal, the higher the profit. For example, if the loan had been borrowed at a rate of 200.000 TL and 0.85% rather than 100.000, the profit would have reached 20.000 TL on average.
For housing loans with a 5-year maturity 1-2 years ago, refinancing becomes reasonable if the existing loan was used at rates of 1.00% or more. For example, if someone who bought a housing loan worth USD 100,000 with a 5-year maturity 2 years ago used it at a rate of 1%, it makes a profit of USD 2,000. If the rate is 1.10, the profit can go up to 6.000 USD.
B) Used Housing Loans 3-5 Years Ago
If 10 years maturity housing loans taken 3 years ago are used at 0.80% and over, they can be refinanced. For example, in May 2010, someone using a 100.000 USD housing loan with a 0.80% rate makes a profit of close to 2,000 USD when refinancing today. As the interest rate and the principal amount of the existing loan increases, the profit is increasing.
10-year mortgage loans taken 5 years ago must be taken at rates of 1.15% or more for refinancing to be a reasonable option. When such refinancing is made on a 100.000 USD loan, approximately 2.000 USD profit is made.
Can I make a profit if I restructure my housing loan? The most accurate answer to this question can be obtained by filling out the form here: Home Loan Transfer
In short, after receiving housing loans, the follow-up should not be abandoned. It is possible to make thousands of USD profit by refinancing housing loans nowadays when the rates have broken the lowest historical records in a row.