May 25, 2024

Housing Loan Structuring Process

Consumers who have difficulty in paying their housing loans, housing loan restructuringis making an application. Configuration operations are known as refinancing. Restructuring aims to make a new agreement with the bank or a different bank of the loan debt, thus making the debt payable. Some issues should be considered in restructuring the loan. In restructuring, the difference between the new interest rate by 15 to 20 points compared to the old one does not provide big gains. If the loan, which is taken with a monthly interest of 1.60 percent, is closed when it drops to 4.40 percent per month, there is no profit to be gained. An interest rate reduction of 35 to 40 points provides great profits. It should not be forgotten that banks have commissions and other transaction fees in addition to the interest rate in housing loans. A housing loan with a low interest rate and high costs will have more monthly payments than a high interest loan. For this reason, it is recommended to apply to several banks.

What is Housing Loan Structuring?

Restructuring in housing loans is the use of loans with low interest rates of the high-interest housing loan used in the past or easy payment opportunities compared to the existing loan and thus paying the debt. As a result of the restructuring, it is possible to reduce the cost of the loan. Even if the interest rates remain the same, it is possible to extend the maturity period with structuring, thus reducing the monthly repayment amount. The decrease in the amount of monthly installments provides relief for the budget in housing loan payments. Housing loan configuration to be appliedIt is possible to make a repayment plan with In this way, the payment day can be changed. It is possible to reduce the monthly payments of the loan by extending the maturity period. While structuring the housing loan, besides the remaining debt amount, the differences between the old and new interest rates, monthly installments and the total cost of the loan should be taken into account. When the restructuring decision is taken, the bank should be contacted and the restructuring interest rate should be learned.

Considerations in Credit Restructuring

One of the most important points to be considered in the structuring of the loan debt is the calculation of profit and loss. Attention should be paid to whether it is the right time for the credit structuring process. Without the right time, the advantage can become impossible to gain. The right time is when the total amount payable is less than the current amount. This is found by calculating monthly installments. It is possible to reach an erroneous result when only the interest rate is evaluated. In that case , the advantages offered by more than one bank regarding the housing loan structuring process should be investigated. The most suitable conditions should be evaluated and an application should be made.

Leave a Reply