It is generally accepted that early repayment or overpayment of the loan is beneficial because it allows you to reduce the level of financing costs. Is it always beneficial? What in this matter differ consumer credit mortgage?
Repayment of consumer credit
Consumer Credit Act of 12 May 2011 indicates that consumer credit loans are not only under the law of the bank, but also loans and revolving loans. It is important, however, limit the amount of consumer credit, which is fixed at 255 500 zł or its equivalent in foreign currency.
The said Act provides for the repayment of the whole or part of the credit to the consumer prior to the date set in the contract for the grant. We reserve the right, however, that in some cases, if it has been fixed in the contract, the lender may require payment of the fee for early repayment. The commission of 1% can be obtained if the period between the early repayment and the contractual term is longer than 12 months. If this time is less than one year, the commission shall not exceed 0.5% of the repaid part of the loan. The commission can not be at the higher of the interest due at the standard, ie in accordance with the loan repayment agreement. It also noted that not all financial institutions decide to download fee for early repayment. Cash loans available over the counter Stefczyka can be paid for in advance without charge a fee.
Repayment of mortgage
Otherwise early repayment of all or part of the liability will look for mortgages. The determinant here is the credit agreement because the law does not specify the maximum commission that may be charged to this account. Some financial institutions do not charge commission after three or five years to repay the loan, and some example makes charging fees from the amount of repaid funds prematurely. Height possibly the rake can be up to 2%, so it will be quite a burden given the customary considerable amount of mortgage loans. In conclusion, nadpłacanie loan is beneficial because it allows the reduction of the level of interest charged on the outstanding capital, but you should always check whether the repayment does not cause high commission calculation, so that the total overpayment or repayment was actually beneficial to us.