Sometimes, instead of taking advantage of the early repayment of the mortgage, it results in a large overpayment. Financial portal expert Olga Daineko told the agency: “Hit the primer”Why does this happen and how to avoid mistakes.
According to him, in an effort to quickly pay for housing, the borrower may make several mistakes that will not only deprive him of benefits, but also lead to unnecessary expenses. The most common is forgetfulness about banking rules. When you deposit the early payment amount, you forget the current payment. As a result, it is simply deleted and the balance remains in the credit account.
The second mistake is that the debtor forgets to inform the bank in advance about early payment. The application must state how the funds will be used for principal and interest. Daineko advises that it is better to “pay early” on the payment date. Otherwise, you will have to pay extra interest and your money may not be processed as early payment. To avoid being mistaken about interest, you must request the full amount before making the full early payment. Before partial transaction, clarify the conditions and choose a discount on maturity or payment.
Some banks set a minimum amount for early payment. This is stated in the contract, which should be read carefully. If the payment is not credited due to the bank’s fault, it must correct the error by recalculating the interest. The expert concluded that if the debtor is at fault, you need to remember the details for the future.
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