Subrogate first home loan: why choose it
When the installment of your mortgage is too expensive or simply not convenient compared to the market trend, you can resort to the subrogation of the mortgage. What is it about? The transfer, at no cost, of your mortgage to a new bank, which has more convenient conditions. For these we have chosen to review the best proposals in the area of the first fixed rate home loan subrogation.
What is the mortgage subrogation
Before going into the merits of the offers, it is necessary to clarify what the subrogation is, what it offers and what limits it has. The subrogation is an intervention that allows, at no cost to the customer, to transfer the residual debt of their mortgage to a new bank.
The transfer does not provide for the cancellation of the mortgage, while the amount cannot exceed the residual debt threshold. With the subrogation, on the other hand, the rate (including the spread applied by the bank) and the duration of the repayment can be changed.
In practical terms, the subrogation allows the customer to enjoy a smaller installment. All to the advantage of the debtor, who can thus take advantage of the competitiveness of the market to save money.
Subrogate fixed rate home loan: the proposals
To evaluate the effective convenience of the mortgage subrogation, we decided to evaluate which are the best loans in the segment of the first home fixed rate mortgage substitute.
The profile of the imagined applicant envisages a 100,000 dollar mortgage substitute to be repaid in 20 years. At the moment the most interesting proposals on the market are:
- Best Bank mortgage: a monthly payment of 496.47 USD is applied. The rate corresponds to 1.80%, while the Taeg reaches 1.94%.
- Cream Bank – Large simple home loan : in this case the installment is 501.16 USD, the result of a rate equal to 1.90% (Taeg 1.95%).
- Infra Bank- Trasformamutuobnl : a monthly installment of 503.52 USD is applied. The interest rate corresponds to 1.95% (Taeg 2.01%).
- Lender Bank – Fixed rate mortgage : the installment corresponds to 499.28 USD. It is the expression of a rate equal to 1.86% (Taeg 2.01%).