Almost all of us are aware that getting one’s own home is one of the biggest financial challenges of our lives. That is why there are many things to consider when applying for credit. In fact, we must not stop here, let’s make good credit even better. And this is only possible with savings. Like this:

## Let’s look at a loan and how much it costs!

Let’s say we take a $ 9 million loan for 20 years. With the help of a loan calculator, we can calculate exactly how much monthly repayments we can expect. In this case, too, we can observe that there are large differences between the offers of each bank.

While the cheapest bid came to $ 46,085, the highest bid was $ 61,960. You see the difference is almost 15 thousand forints.

Let’s calculate that this difference is set at $ 15,000 a month in a savings, how much better it is than paying a more expensive loan.

## The power of saving

For 15 thousand HUF a month, it is worth thinking first of all in an apartment savings fund. It would be even better if we were able to exercise for 20,000 forints a month. This is where we could obtain the maximum annual subsidy of HUF 72,000.

According to the LTP calculator, if we set aside 15 thousand forints for 10 years, we will have 2,350,269 forints, and 3,135,785 for 20 forints. Meanwhile, we repaid $ 5,530,200 over 10 years on our loan. As a significant part of this is interest and management costs, we assume that our debt decreased from HUF 9 million to HUF 6 million. If we deduct $ 2,350,269 because we prepay it, then there is $ 3,649,731 that we have to pay back to the bank.

According to the loan calculator the monthly repayment of this amount for 10 years is HUF 34,075. Let’s compare the two situations.

By default, we would have paid $ 61,960 for 240 months, which is a total of $ 14,870,400. Conversely, if you spend this money on cheaper loans and savings for 10 years, you will pay $ 61,960 * 120 + 34,075 * 120 = $ 7,435,200 + $ 4,089,000 = $ 11,524,200.

## Let’s be proactive!

Summarizing the above, it is clear how much comparison and savings matter. In this case more than HUF 3.3 million. So if you feel like it, contact us so we can give you similar advice! We’re here to help.