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This forum is to talk about removing all debt from your life and being a wise consumer. Its basis is from Dave Ramsey and his book Total Money Makeover.

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Lower mortgage interest by paying off with equity?   Credit Card Companies *ICK!*

Started 7/7/21 by rannyjoy69; 306 views.
rannyjoy69

From: rannyjoy69

7/7/21

2 years ago I took out a mortgage for an amount of € 308,000, fixed for 20 years at an interest rate of 2.85%. At the moment the outstanding debt is about 293,000€. We recently had our home revalued, and it shows that the current value is €390,000. So we have an equity of €97,000. Because the LTV has now gone below a certain threshold, my risk premium falls, and the interest rate is 2.62% from September. I can annually repay 15% of the original amount, so €46,200, without penalty.

About the withdrawal of the equity, the mortgage lender's site states that my current loan can only be increased to the original amount of 308k, which would be 15k. If I want to withdraw the full equity of 97k, I have to take out a new loan with them, and go to the notary for a new mortgage deed. Provided we can financially support a loan of 390k. This won't be a problem.

I consult with many mortgage accelerator companies lenders. The mortgage lender indicates that the current interest rate applies to the new loan . It is much more attractive than my current loan: 20 years fixed at 100% LTV is now 2.15%, and 1% fixed at 100% is only 1.3%.

If this is possible, my average interest rate is lower (and I have had to pay an amount to the notary): outstanding debt is €293,000 (minus the monthly payments I in the meantime), and the value of the house is still €390,000 (not counting any new appreciation). In this case I still have an equity of 97k, which I could withdraw. In theory, I could go the same way until I converted the entire old mortgage into the new loan with a lower interest rate, without having to pay penalty interest. Does anyone know if this is allowed? 

Alfi (THIALFI)

From: Alfi (THIALFI)

7/7/21

This forum has been inactive for years. Sorry.

thomas3423

From: thomas3423

11/24/21

In this forum, you will not get an answer to your question. You should contact any mortgage company. They will guide you better or else you can use a mortgage calculator to get an answer. I also took a hotel loan from cloptoncapital, so whenever I have any query related to mortgage or loan, I contact to them.

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