What current methods exist for decrease your monthly mortgage payment, the latest financial supports proposed by the banks and the next government measures? The value of money continues to rise, as do interest rates and home mortgage loan payments. According to the most recent calculations, in the last year the cost of a mortgage loan has risen between 60% and 75% for those who have taken out a loan with a variable interest rate. Therefore, the most effective strategy is sought to reduce the monthly payment of a mortgage loan. Let’s find out if and when it’s possible.
What are the 3 current systems to reduce the mortgage payment What are the new bank aids for mortgages and incoming government aid
What are the 3 current systems to reduce the mortgage payment
I three current systems that allow you to lower the mortgage payment are: renegotiation of the loan; loan subrogation: early repayment of the loan.
Mortgage renegotiation
The Mortgage renegotiation allows you to modify some conditions contained in the loan agreement in force with your bank with the definition of more favorable conditions. The borrower who intends to renegotiate his loan must go to his bank, explain the reasons why he decided to renegotiate the loan and his needs in order to choose the new solution according to his needs. Following this method, the borrower and the bank, by mutual agreement, modify some conditions of the existing loan agreement.
For example, you can switch from a variable rate mortgage to a fixed rate one or vice versa; or you can request an extension of the duration of the same loan with respect to the initial period established, passing from a twenty-year loan to a thirty-year one, consequently reducing the amount of the individual repayment installments but increasing the repayment time of the same.
When you make a mortgage renegotiation, the previous contract does not expire and it is not necessary to turn on a new one, but it changes, certainly becoming more advantageous for the same borrower who has opted for the changes. The renegotiation of a mortgage does not require expenses and can be carried out by private deed, even if not authenticated, and can therefore also take place through an exchange of correspondence between the bank and the customer, and the intervention of a notary is not even required.
Mortgage subrogation
The subrogation allows you to change your mortgage, also switching from variable to fixed rate, at no cost, by changing banksi.e. by transferring one’s residual loan to another bank, after evaluating the various offers proposed, changing the type of loan (rate) but also its duration.
The transfer of a mortgage from one bank to another concerns the registration of a mortgage on the house that has been bought and, by subrogating its mortgage, the new bank takes on the burden of paying off the residual debt. The customer, for his part, undertakes to pay the installments of the new loan. Once the transfer from one bank to another has been made, which takes place automatically between the same banks, nothing more will have to be paid to the old bank.
Early repayment of the loan
Finally, to lower the mortgage payment is also possible pay off in advance without blackberries. According to the provisions of the laws in force, those who have liquidity on the side can reduce the installments without any penalty.
What are the new bank aids for mortgages and government aid incoming
In support of those who have mortgages in progress and have high installments to pay, in waiting for new official aid from the government for those with mortgages in progress and risks seeing doubled installments to be paid, the banks have decided to define specific aid measures.
Intesa Sanpaolo for example, it has decided to lengthen the installments of variable mortgages to reduce the difficulties of households and businesses in paying the monthly installments, considering the increase in interest rates by the ECB.
Also Unicredit for individuals and families, it has provided for a new flexibility plan for mortgage repayments, extending the zero-expense remodulation of the mortgage with the possibility of suspending the repayment of the principal amount for 12 months, or reducing the amount of the installment with a simultaneous extension of the expiry of the repayment plan for a period up to a maximum of 4 years.
Intesa Sanpaolo and Unicredit have anticipated what the government is preparing to do to support borrowers. In fact, Minister Salvini has announced that he is working with the Ministry of Economy and with the banks to extend the installments of those with variable rate mortgages and thus support families in difficulty who must, however, observe the regular payment of mortgage installments.
Key concepts
The three current systems for lowering the mortgage payment are renegotiation, subrogation and early repayment of the mortgage. The renegotiation of the loan allows you to modify the contractual conditions with your bank to define more favorable conditions. The subrogation of the mortgage allows you to change your mortgage, vary the rate or the duration of the mortgage, transferring it to another bank. Intesa Sanpaolo and Unicredit have implemented aid measures for borrowers in view of the increase in installments, pending new interventions by the government.