We have repeatedly said that, as a matter of fact, we advise everyone to have (at least) an apartment savings fund, not just before the loan, but also along with the loan. There are many reasons and arguments for this. And now we’re going to show you how to count home savings and why!
Banks were created to lend. Their profit is the interest paid on the loans. This is a win-win for both the bank and the borrower. After all, if you think about it, few at a time have the capital to buy your new property in cash, while the bank has a financial advantage. And this is within a relatively flexible framework, since it does not negate the possibility of reducing our debt at any time with extra amounts. Here comes the picture of home savings!
The benefit of home savings
Certainly, many people know that 30% or up to 72,000 HUF of government subsidies are paid for home savings . We can start such contracts for different time periods, such as 4,5,6,8 or even 10 years. After a simple head-to-head calculation , we can figure out that after a contract the state subsidy can reach 720 thousand HUF , but for what term should we start a contract? Let’s figure out which one we do better if we start with 1 8 year contract or 2 4 year contracts!
Which one do we do better?
By default, let’s take out a $ 8 million loan for 20 years, for which the loan calculator will charge you $ 40,965 a month. More importantly, we are giving back a total of HUF 9,996,771 to the bank in exchange for HUF 8 million.
If we start an 8 year monthly 20,000 HUF home savings , then after 8 years we can prepay $ 2,627,077 in the 99th month, which means we will repay the 240 month loan in 164 months, a little over 13 years. Thus, together with the saving of the apartment, we come out of HUF 8,638,260, which means we saved HUF 1.3 million compared to the original.
After two 4-year contracts, the trick is to pay off $ 1,300,320 in two installments at once. Interestingly, it only takes 161 months to repay the loan. This saves you an additional 3 * 40,965 HUF, which is 122,895 HUF, and more than 1.4 million HUF in total.
As you can see, we handle the borrowing carefully. Would you like us to help you too? Contact us! You can be sure that we will come up with some similar lucrative solution for you too.