Refinancing, or how else to save on loan

On the eve of the New Year I want to please the readers pleasant information. On himself he tested last week, and now you recommend another way to save money on credit - refinancing (Or scientific "Refinancing"). Next, I'll tell you how I have reduced their monthly payments 7200 to 4800 rubles. But in the end, when I will cover the loans and will spare even 10 thousand. rubles in interest.

The essence of the method is simple - you take a new loan to pay off the old one. At the same time, of course, you take out a loan in the amount of the remaining debt on the old loans. What benefits can it be?
1. The most clear - is, of course, % reduction in the loan. For example, it was 21%, you have taken by 19%.
2. Reducing the monthly payments. This is due to the fact that you take a smaller amount (you take only the outstanding balance), but again, for the same period, such as 5 years.

In general, it is clear now try to find out more:
1) Reduction% of the loan. In this regard, it is necessary to persevere and to spend a little time. And the action is very simple - you call at any bank that offers loans at the same% as Your or less directly and say: "I have a loan in the amount of RUR XX, YY under interest per annum. I would like you to refinance. Can you offer me a loan ZZ percent per annum? ". Yes it's good. No - call the next bank. Personally, I was lucky the first time.

2) Reducing the monthly payments. Why is this happening above. But this is a positive phenomenon creates you a crossroads. That from this you choose depends on your current goals:
— Reduce monthly expenses - the difference in payments (the amount that was paid earlier - an amount that will be paid at the moment) you put into your pocket, thus saving the monthly budget. But in this case you definitely overpay on interest on loans. Imagine - you previously paid interest, and take out a new loan once again. And if you have annuity payments, the 50% interest you will pay in the first 30% of the time. So that.
— reduce overpayment Interest on the loan - the difference in the payment you use for the early repayment of the new loan. Thus, you can save money on overpayments interest for the loan.

for exampleI did so. I had two loans with a total balance of the arrears in the amount of 170 thousand rubles. Payments have been 2600 and 4600 rubles. The interest rate of 18% and 21%. I called the bank current competitor banks directly told him about my credit, that I regularly pay for it, that I have in the bank is a good story (this indeed the case) and asked if they could give me a new loan in the amount of 170 thousand rubles at 17.9% per annum (this was their very low promotional interest) for the current lending loans. They thought for a moment and agreed. The total payment was the 4800 rubles (would be 4400 rubles, but I still took the insurance - a topic for another conversation). The difference in payment (7200 - 4800 = 2400 rubles) I will spend additionally on the early repayment of the loan. As a result, I will close the new loan is not for 5 years, and 3 months, and a total saved on interest payments 10 569 rubles for 3 years. Actually I save on interest more as each month will pay a higher amount, but The calculations show that I would win, even if I will pay for old loans amount.

How it can be beneficial to your case, and how to calculate it? Try to understand.

At first we analyze the theory. Consider the case where you simply cut monthly costs does not make sense - here and so everything is clear. You just pay less. You can calculate how much more you end up overpay, compared with a case where you would not perekreditovyvatsya. But again - it all depends on your current goals. There are situations when it is important to do more than just reduce the monthly payment.

And here is a situation where you are using the released funds is more interesting for the early repayment of the loan. In fact, the calculations laid out in the two situations:
A) When you perekreditovyvatsya one loan;
B) When you perekreditovyvete two or more credits;
In fact, the only difference is in the complexity of the calculations - in the first case, they are, of course, it's easier)

A) In this case, it's simple. Do you think or see in the calculations of the bank, which are attached to the Agreement:
- What is the amount of principal you have already repaid and how much is left;
- What is the amount of interest you've paid on the loan and how much you still have to pay;
- consider how much you overpay for a new loan if you repay it ahead of schedule (of course, I have prepared for you a file. He later)). While we are talking about the theory.
- That it was profitable, it is necessary to satisfy the following inequality:

(The sum of the fact that you have overpaid loan + Sum planned overpayment on a new loan)

The resulting difference - and have your benefit)

B) In the case where you have multiple loans, you need to:
- Repeat the above sequence for each loan;
- Summarize these indicators on all loans and compare them with the new loan;

By the way, there is a moral bonus from bundling several loans into one - it is more convenient to pay).

As I promised, the practice, and the ability to calculate your specific case possible for link to a file. To work you need only the first page of the file. As always I have the following fields marked in yellow. If you want the details - they are on separate sheets of the file.

Output: Consider. Perekredituytes. Save!

And with the new year, financial success to you in 2013!))

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You may be interested in other articles of the author:

• How much is your credit?
• Keep the money at home? You lose 13% per year!

• How to invest free money: to make a contribution or to repay the loan?