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Ten questions and answers about paying off your mortgage

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Ten questions and answers about paying off your mortgage

Questionwho has a home loan at a floating rate will be exempt from paying fees for early repayment next year, reminds DECO Protestsrecommending that “if you have savings, Paying off home loans can be a good solution to reduce performance.

The consumer advocacy organization prepared a set of questions and answers that I came to to clear up some doubts about the amortization of debt in a home loan. Stay on top 10:

1. Are there minimum amounts for early repayment of the principal on a mortgage loan?

“Not. Depreciation can be partial, in the amount available or full. However, the larger the amount to be amortized, the lower the amount of interest payable, and therefore the smaller the monthly payment payable to the bank. Use the file we provided above to model the impact of capital depreciation on monthly payments.”

2. How much of the early depreciation fee is paid?

“Currently, the fee paid to the bank for early repayment is 0.5% for floating rate housing loans, that is, five euros for every 1,000 euros returned. For fixed rate home loans, this fee is 2%, i.e. 20 euros. euros for every 1000 euros of redemption.

However, in 2023, with the measures announced by the Government, floating rate housing loans will not pay prepayment fees. If you have some savings on the side and a variable rate mortgage, this may be the right time to pay off the bulk of your loan.”

3. Can I pay off the principal on my mortgage at any time?

“Yes, you can repay the borrowed capital whenever you want. You don’t have to, for example, wait for the anniversary of the title deed.”

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4. Can the bank refuse early repayment?

“No, if there are no restrictions from a contractual point of view. Although this is rare, the contract may provide, for example, that early repayment is possible only after a few years after the start of the contract.

5. Is there a limit on the number of repayments I can make during the term of the loan?

“Not. You can repay the main debt as many times as you like, namely every month. However, it is preferable to save a good amount and make annual payments. If you make monthly payments, you will reduce your principal debt faster. However, if you do an annual depreciation, the reduction in the monthly payment will be more significant.”

6. Does the premium decrease next month after depreciation?

“If you are making a partial principal repayment, the period over which you will see the reduction reflected in your monthly payment is seven days. If the repayment is in full, the period is ten days. However, if your monthly payment has already been issued or calculated, you may have to wait until the next month to see a decrease in the amount due.”

7. I have paid off my entire mortgage loan. What should I do next?

“If you have already repaid the entire amount due on the loan, you must request a distraat, a free document confirming the repayment of the loan from the bank. Then, at the Land Registry Department, you must request a burden on the property, since when buying it with a bank loan, it is given as a guarantee.”

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8. I have money invested in PPR. Can I use it to pay off my mortgage principal early?

“Not. PPR can be used, for example, to pay mortgage installments that are past due or due, but not to prepay the principal on a home loan.”

9. There are only four years left before I pay off my 30-year loan. Should I depreciate?

“You can always amortize it if you don’t have an alternative application for your savings that will allow you to make a big profit. However, if you only have four years left to repay the loan, you will no longer pay a very high amount in interest and, therefore, the cost of the loan should no longer be too high.

10. Does prepayment of borrowed capital affect the IRS?

“Not. Currently, interest on loans entered into before December 31, 2011 can be deducted from the IRS. Contracts entered into after this date do not have this tax benefit. However, because they represent a significant expense for families, DECO Proteste argues that, as in the past, interest on all home loan agreements can be deducted from the IRS.”

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Economy

Tesla announces another recall of 80,000 vehicles, and some even have to be recalled

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Imagem Tesla recall

Tesla cars suffered this year a large number of requests for “collection”better known as the process revoke🇧🇷 Trouble again and 80,000 vehicles in China will be recalled. If many of recalls was an easy decision as it was over the air (OTA) it really obliges the owners to take the car to the workshop.

In fact, this year, many millions of Tesla electric vehicles received revoke for fixes.

Many of the reviews are related to issues resolved via OTA.

Whenever there is a safety issue, the NHTSA must issue a "safety recall", even if the car manufacturer does not have to physically recall any vehicles, leading to some confusion.

Once again last month, Tesla's "1 Million Vehicles" collection of vehicles generated a lot of news as the impact on drivers was almost negligible considering the update only changed via OTA the software that runs the car system. to work with windows.

These cases have prompted Tesla CEO Elon Musk to complain about the term "recall = collection" and how it is being used in the media against Tesla. Today The American company again announced new collections in China about 80,000 cars.

13,000 Tesla electric vehicles have seat belt problems

The recall includes 67,698 imported Model S and Model X vehicles with a battery-related software issue, according to Chinese authorities. Again, the fix is ​​a simple software update. Nonetheless, this time there is also a physical collection due to the problem with the seat belt in approximately 13,000 Model 3 vehicles: 2,736 imported and 10,127 made in China.

over 20 recalls there were many collections in 2022. However, Tesla is not the only automaker to be hit by major recalls this year. OUR Ford also just confirmed that it is recalling another half a million vehicles. due to fire hazards, and many car manufacturers have also recalled millions of vehicles this year.

In any case, the fact that the vast majority of calls from electric brand a quick fix with over-the-air (OTA) software updates — rather than taking cars back to the dealership like other car manufacturers — shows that Tesla's level of connectivity to its cars is a huge advantage in the industry.

The software update system (OTA) allows the buyer to fix many problems easily and conveniently, and for Tesla itself means big money savings.

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Economy

Lidl wants to dominate the fast-charging market for electric vehicles at affordable prices

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Estação de carregamento, no Lidl, aberta 24 horas por dia

One of the EU’s goals for electric vehicles is to guarantee charging points so that tram drivers don’t have to worry about being on the road when they travel. To meet this need and dominate this market, Lidl intends to offer affordable prices.

We may soon see this initiative in more supermarkets.


Despite being a supermarket chain, Lidl has been guaranteeing electric vehicle charging stations in its stores for some time. However, a new journey has now begun, the launch of the first ultra-fast charging station, which has the distinction of guaranteeing a price well below what can be found on the market.

With this new equipment, in addition to the aesthetic aspects, Lidl takes on technical and cost commitments, guaranteeing the best on the market. After all, she not only placed the charger in her supermarkets, but also created, in turn, a space with protection for vehicles, users and chargers, in an area open 24/7 (i.e. 24 hours a day, 7 days in Week). . . .

This provides better visibility of the infrastructure and reduces the risk of internal combustion engine vehicles occupying space reserved for electric vehicles.

Lidl bets on affordable charging points

The first station will be installed in a Lidl supermarket near the French city of Lyon. The space is equipped with five charging points ranging from 22 to 360 kW. Thus, each client will be able to choose the one that best suits his needs.

For example, a 22 kW charger has a competitive cost of 25 cents per kWh. When we move to more powerful stations of 90, 180 or 360 kW, the price becomes 40 cents higher per kWh.

The strategy adopted by Lidl in some of its stores is already rolling out to other countries, such as Germany, where the supermarket chain is installing its first fast-charging stations, with 150kW stations priced at 48 cents per kWh.

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Economy

European Stock Markets Fall, Interest Rates Rise, Oil Rebounds – Markets in a Minute

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Europe is turning green.  Oil and gold down.  Percentage Increases - Markets Per Minute

Euribor climbs three and six months to new highs in almost 14 years

Euribor rates rose today to new highs since early 2009 at three and six months and fell at 12 months.

The six-month Euribor rate, most used in Portugal for home loans and entering positive territory on June 6, rose today to 2.374%, plus 0.006 points, the highest since January 2009.

The six-month average Euribor rose from 1.596% in September to 1.997% in October.

The six-month Euribor has been negative for six years and seven months (from November 6, 2015 to June 3, 2022).

The three-month Euribor, which entered positive territory for the first time since April 2015 on July 14, also rose today, setting a new high since February 2009 at 1.922% plus 0.014 points.

The three-month Euribor was negative between 21 April 2015 and 13 July last year (seven years and two months).

The three-month average Euribor rose from 1.011% in September to 1.428% in October.

On the other hand, over a 12-month period, Euribor fell today, settling at 2.860%, down 0.019 points from Thursday, after rising to a new high since January 2009 of 2.879% on Thursday.

After rising to 0.005% on April 12, positive for the first time since February 5, 2016, the 12-month Euribor has been in positive territory since April 21.

The average Euribor rate for 12 months increased from 2.233% in September to 2.629% in October.

Euribor began to rise more significantly from February 4, after the European Central Bank (ECB) admitted that it could raise key interest rates this year due to rising inflation in the eurozone, and the trend accelerated with the start of the Invasion of Ukraine on February 24.

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On October 27, to curb inflation, the ECB raised three key interest rates by 75 basis points, the third consecutive increase this year, after raising three interest rates by 50 basis points on July 21. growth after 11 years, and on September 8 by 75 basis points.

Changes in Euribor interest rates are closely linked to increases or decreases in ECB key interest rates.

Three-, six- and 12-month Euribor rates hit record lows respectively: -0.605% on December 14, 2021, -0.554% and -0.518% on December 20, 2021.

Euribor is set on the basis of the average rate at which a group of 57 Eurozone banks are willing to lend money to each other in the interbank market.

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