Good Finance Bank: Renewed its line of products with new fixed rate mortgages. In response to market competition, it offers “Stable Interest” (“maturity-adjusted”) loans, extending the duration to all maturities. It is no longer just a 10/15/20 year, but a 5-20 year maturity, whether it be market interest rates or consumer loans.
The main features:
- the interest rate is the same within the maturity bands.
- market rates and consumer-friendly mortgages are exactly the same, except in the 9-10 year maturity band, where Qualified Credit is 5 basis points more favorable.
Interest rate fixation is achieved by choosing a longer interest period
The choice of interest rate period has changed, and when borrowing, we can also choose an 8 year interest rate period for an 8 year home loan. In addition to the 10-year, 12-year maturity, we can also request 10 and 12-year interest periods.
For example, you can also choose a home loan with an interest rate of up to 8, 12 and 17 years. Obviously an important factor is that the fixed interest rate adjusts flexibly to the maturity of the loan so that you can get a cheaper loan. For this reason, we can say that Good Finance Bank’s innovation is great and unique in its own right.
A family with a $ 300,000 income would require a loan of $ 10 million, then we expect income collection and active cash flow and additional services.
We compared Good Finance’s new
“Stable rate” products with the best of its competitors. The results speak for themselves.
- An 8-year fixed-term loan is a fixed-term loan that covers an 8-year interest period. In contrast, the new product was compared with the values of the 10-year interest period. 0.66 percentage point difference in APR, HUF 2,970, – the installment difference of the forint, the interest-rate-adjusted interest period (compared to the 10-year interest rate fixation) won by HUF 288,907.
- Next is the 12-year interest period with a maturity of 12 years. This was compared with the values of the 15-year interest period. As there is currently no specific loan product for a 12-year term with a 15-year interest rate, we have used 15-year fixed loans as if they were available for 12-years. 1.03 percentage point difference in APR, 4.572, – HUF installment difference, for which we have to pay a total of 694 471, – HUF less at the end of the loan.
- In the case of the third one, we examined a 17-year interest period for a maturity of 17 years. We could compare this with the values of the 20-year interest period! The difference is 3.1% points, 14,923, – HUF monthly installment difference in favor of the term-adjusted interest period, and we have to spend a total of 3,169,783, – HUF less to repay the loan.
All in all, Good Finance Bank’s new home loan product will bring significant savings for borrowers.
So we can say that it is worthwhile to use “interest rate fixation”.
If you are interested in the options, we will help you with the administration. This way, we are presenting a specific loan offer from several banks, which is valid for up to 6 months. We take care of the credit for you, and provide you with prompt solutions to any problems that may arise in the meantime.