MonthFebruary 2020

Government Loan Interest Rates: TAN and APR 2018 2019.

Goverment Agency loans

Goverment Agency loans

Loans are a very useful tool in order to be able to change one’s liquidity condition. In an era where even if you have a pension or a fixed salary, money seems never to be enough, using guaranteed systems such as Goverment Agency loans can be a great lifeline for the public worker too. Thanks to these financial products it will be possible to have immediate availability and direct access to credit.

What are Goverment Agency loans?

What are Goverment Agency loans?

The National Institute of Social Security for Public Administration Employees was created in 1993 with the merger of a number of entities. He had different duties, among the most relevant there was that concerning the collection of social security contributions and the disbursement of pensions.

It was also possible to receive small loans, with interest rates facilitated by the Goverment Agency. In 2011, the institution was incorporated into Social Security, which replaced the old institution in order to issue a series of small and medium-sized secured loans. But what are the advantages of this type of financing? And who are the subjects who can receive it?

Who can apply to Goverment Agency

Who can apply to Goverment Agency

Goverment Agency loans are accessible only to those who are enrolled in the former Goverment Agency system of Social Security and therefore a subject who is a state or public administration employee.

This type of financing is based on a fund called the Unitary Management of Credit and Social Benefits, which was established in 1996 and is now managed by Social Security. Each have through this form of guarantee are granted a series of small loans or multi-year loans that are considered subsidized for state workers. Not only is the procedure very rapid, given that it is carried out directly by the assistance body, but it is also guaranteed.

The withdrawal of the installments is in fact made directly from the subscriber’s salary or pension. If we add subsidized interest rates and rapidity in obtaining financing, we consider the importance of such a financial product. In addition, the Goverment Agency has signed over the years a series of agreements with finance and credit institutions which therefore allow access to a loan or loan, even different from that envisaged by the institution. The agreements concern not only the maximum amount that can be paid according to age, but also a particular type of interest rate. The cost of a loan is focused precisely on this element.

Before making an application for an economic amount, it will be necessary to evaluate what the cost of returning the loan is.

Interest rates: what TAG and APR are and which are the best

Interest rates: what TAG and APR are and which are the best

Whether a public body such as Goverment Agency, now Social Security, an affiliated financial company, or a credit institution, there is always an economic return behind a loan.

To simplify we can make a simple example. If you ask a credit institution for a loan of $ 1000, not only will you have to repay this sum, but there is also a cost that goes in proportion to a series of factors, such as amount, duration of the loan and number of installments. There is talk of TAN and APR.

The new European banking legislation has established that it is mandatory by law, always specify these two values ​​in the information sheets. But how to extricate oneself in the middle of the percentages that appear on billboards or on the contract when taking out a loan? Before talking about the interests of Goverment Agency loans, it is important to carefully consider these two acronyms to evaluate their value.

In a simplified way, the TAN is identified as the nominal annual rate. With this term we therefore consider the pure interest that is calculated on the loan that has been granted. In this case we mean the money that is recognized directly to the finance company for having lent money. The TAN is not paid in a single solution but according to an amortization plan that divides the value according to the different installments.

In the initial installments, the interest to the institution will always be returned first and then the remaining paid-up capital. Some loans allow the cancellation of the costs of the TAN, but not of the APR. This acronym identifies the nominal effective rate, which is a virtual reality which includes all the overall costs of the loan, including the opening, closing and costs of the file that must be faced by the applicant.

This second element is to be evaluated effectively in order to consider an advantageous loan or loan.

Interest rates for late 2018 and 2019

Below we will analyze the two types of financing envisaged with the relative reference interest rates:

  1. small loan : the loans that can be made to Social Security, Goverment Agency employees with an amount not exceeding $ 5000 are considered. As the term used says, it is a small sum of money that can be convenient in order to face immediate and unforeseen expenses, such as those of a medical nature and that will have to be returned in convenient installments of 12 months or even up to 48 months. Given the very small amount, no particular type of documentation is required to demonstrate the use of the money. The maximum amount payable and the time of refunds are directly proportional to both the age of the person and his salary. Thanks to the institution’s subsidy system, interest rates appear very favorable. The TAN is equal to 4.25% while the APR must be added 0.50% as additional administration and risk provision expenses, reaching a maximum of 5.01%.
  2. multi-year loan : in the case of loans with a higher number of years as in the case of 5 or 10-year loans, the installments can be from 60 to 120 monthly. The interest rate is equal to 3.50% while the APR varies according to the age and the amount requested. The installments cannot in any case exceed 20% of the salary amount;
  3. agreed multi-year loans : we talk about multi-year loans. In this case the Goverment Agency benefits from the agreements stipulated with finance and credit institutions, as well as banking institutions in order to grant this type of financing. The amounts can also be substantial reaching 69.000 / 75.000 $. The maximum amount is strictly linked to the age of the subject and the wages or pension received.
    In this case, based on the type of agreement, it will be possible to have a facilitated TAN and APR. In any case, the installment can never exceed 1/5 of the salary in order to guarantee the applicant the possibility of returning the loan comfortably.

The 2019 advances on Goverment Agency loan interest rates

The 2019 advances on Goverment Agency loan interest rates

In the Goverment Agency regulation published in 2018 all the specifications for the request for a small loan or a multi-year one have been listed. In the same document there is also an indication of the type of interest based on the financial product being facilitated.

The regulation would also appear unchanged for 2019, thus confirming the percentages of the nominal and effective annual rates. Even if the Cream Bank expects a rate increase expected for the beginning of the new year, those who can take advantage of an Goverment Agency loan will not see any form of modification to their facilities.

 

Loan Simulation: How to do the simulation and calculation of the online installment.

Have you finally decided to change the kitchen, or have you made the big decision to go on a trip around the world? Do you have to buy a new car or pay your first-born university master’s degree?

For these various needs, personal loans exist, which allow you to plan your expenses and extend them over time. But now you are faced with the great unknown: how can I assess which is the best loan compared to my needs? And which is the cheapest on the market?

Online quotes and branch quotes

Online quotes and branch quotes

The most classic method to obtain a simulation of the financing that is right for you consists in going directly to the branches of banks and financial institutions; the consultants will carry out an in-depth interview, during which they will bring out your needs and ask you for details on your income and your spending capacities.

They will then simulate the financing for you, to allow you to understand which installment you could take on.

A simple alternative, which you can try directly from the comfort of your sofa at home, is to use an online budget: you can find one on the websites of the individual banks and financial institutions, or use specialized sites, which will allow you to obtain different comparable simulations.

Normally you will be asked for some essential data:

  • The amount you wish is paid to you
  • The term of the loan you are thinking about
  • The purpose of the financing

You may also be asked for additional information, useful to make a first check on your ability to support the financing, such as:

  • What job do you do (permanent employee, business owner,…)
  • What is your monthly income
  • What other financial commitments do you already support and for what amount

Some advice on how to perform a loan simulation

Some advice on how to perform a loan simulation

Take carefully into consideration the amount you really need, taking into account that larger amounts obviously involve paying more interest in the total life of the loan.

Also consider the duration carefully: normally longer loans are more expensive, but they have the advantage of being more easily “bearable” than your family budget, because they correspond to lower installments.

Our advice is to carry out more simulations in any case, slightly modulating the duration or the amount, to find an installment that suits your needs.

Always consider that the total amount of financing you pay should not be more than 30% of your disposable income: this means that on the sum of your family’s wages and other income, remove any further continuous expenses (such as the payment of a rent), your loan shouldn’t weigh more than a third or so.

Some simulations of the best loans you can do below, the loan quote is in fact totally free :

How to compare two or more loan quotes in 2019?

How to compare two or more loan quotes in 2019?

Once you have obtained your estimates and verified that the amount of the installment is suitable, you must compare them to verify their convenience. You will find different economic conditions, let’s see together what they indicate and what can be most useful to you.

  1. TAN (Nominal Annual Rate) : it is the interest rate of the loan and is normally the component that weighs most on the overall cost of the operation. Many consider it essentially the “price” of the loan, but there is a more useful voice to evaluate how much it will really cost you.
  2. Preliminary costs or initial costs : they are a commission that the bank requires to start the practice and to evaluate it
  3. Installment collection costs : it is an additional commission that many banks and financial companies ask for the payment of each single installment.
  4. APR (Annual Global Effective Rate), also called ISC (Synthetic Cost Index) : it is the actual mortgage price. Summarizes, in the form of a rate, all the cost items that weigh on your loan; for this reason it is always equal to or higher than the TAN and provides a much more useful indication to be able to compare two or more proposals.

The product with the lowest APR is the most convenient of all : by summing up both the interest rate and the other expense items, it allows you a perfect and quick comparison, without having to analyze the individual components.

Finally, you can find other interesting information on loan estimates, such as any early repayment penalties (i.e. commissions that you may have to pay if you decide to close the loan before it expires, paying all the capital that you still have to repay) or the total cost of credit : this last item is the sum of all costs and all expenses to be borne by you.

It includes the sum of all the interest that you are going to pay and all the other expenses provided, giving you a very precise idea of ​​your overall outlay.

Have you finally decided to change the kitchen, or have you made the big decision to go on a trip around the world? Do you have to buy a new car or pay your first-born university master’s degree? For these various needs there are personal loans, which allow you to plan your expenses and extend them over time. But now you are faced with the great unknown: how can I assess which is the best loan compared to my needs? And which is the cheapest on the market?

Top up Postepay with Credit Card: Here’s how

Nowadays we all or almost all own a Postepay and sometimes we need to use it. It is usually used online, since it is safer to use a prepaid card to make purchases online, especially if we make purchases in sites that we do not know or trust, just to be sure that our data, but also our money remains safe, and in doing so we will avoid risks or anything else, also because, usually, on Postepay we do not keep large sums of money or the same sums of money that we will keep on a common credit card, but rather we add only the sum that we need at the time of need and that’s it, so then there could be little money left, the ones left after making the payment.

For this reason we have decided to explain how you can top up your Postepay directly from your home and using only the PC visa and your credit card, because you will top up your Postepay directly with your credit card.

How to do

How to do

Now I will explain in a very simple way how to be able to top up your Postepay with your credit card: The first thing you will have to do is to look for the visa of the mail on the internet.

Once this is done you will have to create an account by entering all your data and everything you need. Once the account has been created, you will have to click the top up item and you will only have to follow the procedure, it is the same both to use the credit card to top up the Postepay, and for the Postepay to top up another Postepay.

Other methods

Obviously there are also other methods to recharge the Postepay, and the one listed above is certainly not the easiest for those who are not good with technology, in fact other methods to be able to recharge your Postepay could be to go to an ATM and make a payment from there, or or go to a tobacconist who also refills and top up directly from there, paying a small commission.

Use Good Finance

Use Good Finance

To top up your Postepay you can also use the Good Finance website, the only thing you will have to do is to go to the Good Finance website and access your account and then you will have to follow the procedure, then choosing to use the mastercard or visa to carry out the operation.

In conclusion it can be said that Postepay is easier to use, more than you think, in fact you just have to get carried away and it will become very simple, it is also safer to use it because if our card is cloned they will only get us a little money, compared to when we are credit card cloned, which instead could take us a lot more money, so it is always good to prevent and make purchases using the prepaid card, especially online.

In any site, even on the one where we have been buying for years and that has never given us problems, because you never know, wherever they could clone us the card without us knowing anything or without realizing it and then you should go to do everything to be able to recover everything and then get our data back, not being sure that we can get our money back too, so as the saying “better safe than sorry” says in this case, so better prevent these unpleasant consequences by using Postepay, in order to be safer and therefore to be able to continue shopping online in complete freedom and serenity, without having the thought that they could steal our card data and therefore also data with money and so much more.

Nowadays we all or almost all own a Postepay and sometimes we need to use it. It is usually used online, since it is safer to use a prepaid card to make purchases online, especially if we make purchases in sites that we do not know or trust, just to be sure that our data, but also our money remains safe, and in doing so we will avoid risks or anything else, also because, usually, on Postepay we do not keep large sums of money or the same sums of money that we will keep on a common credit card, but rather we add only the sum that we need at the time of need and that’s it, so then there could be little money left, the ones left after making the payment.

For this reason we have decided to explain how you can top up your Postepay directly from your home and using only the PC visa and your credit card, because you will top up your Postepay directly with your credit card.

Mortgage Renegotiation: What is and how to renegotiate the mortgage with your bank

Banks, Mortgages

Banks, Mortgages

For those who have taken out a mortgage, its sustainability is very important. As is known, in recent years the Government Agency carried out by the Medium Centrum Bank, led by Mario Draghi, has produced a significant reduction in interest rates, which have even gone below zero.

The new triggered situation had significant repercussions on a series of contracts relating to financial products that had been stipulated in what we could define as another historical epoch.

Among the products in question there are also mortgages, contracts perhaps before the crisis of 2008, the one that followed the bursting of the Subprime mortgage bubble or in the years immediately following. Years during which interest rates were significantly higher, with obvious repercussions on mortgage repayment plans.

Precisely in order to remedy a completely new situation, many borrowers, in order not to find themselves in difficulty due to the considerable variations in interest rates, have started to look around for a solution. For example, identifying it in the so-called renegotiation of the mortgage: what is it?

What is mortgage renegotiation and why should it be done?

What is mortgage renegotiation and why should it be done?

By renegotiation of the loan is meant the modification made to the conditions of the same, agreed with the lender, whether it is a banking or financial institution. This increasingly widespread practice can be used to remedy a completely new situation on the financial markets that can cause damage if the contract originally entered into is maintained.

Among the cases that can lead to a similar decision, we should mention in particular:

  • a significant reduction in fundamental parameters such as the spread and the interest rate;
  • the desire to perhaps extend the duration of the repayment plan in order to make the monthly installment to be paid to the provider more light and therefore more sustainable;
  • the desire to change the rate, perhaps taking it from fixed to variable or vice versa, precisely in order to intercept the evident change in market conditions.

Finally, the renegotiation will lead to the drafting of a new contract which will take account of the needs envisaged by the user.
To adhere to the proposed change, the bank (or the financial company) in turn requests that the existence of elements such as to alter the relationship that was originally established is proved, making it in fact difficult for the customer to support.

How does mortgage renegotiation work?

How does mortgage renegotiation work?

The renegotiation of the mortgage provides for a fairly simple procedural process, which will end with the launch of a private agreement, which assumes the official form of a new agreement between the parties that originally signed the contract.

It should also be stressed that the request to activate the procedure ultimately represents a real formality. In fact, it is sufficient to send a registered return ticket to the provider in which the parts of the contract to be discussed will be indicated.

At this point it is necessary to specify forcefully how an institution of this kind presupposes an agreement between the parties, since none of the signatories of the original agreement can proceed to a unilateral redefinition of the conditions envisaged by it.

In this regard, it should also be remembered that in fact the lending institution is usually not very oriented to adhere to a proposal for renegotiation of the mortgage.

A typical case in which it has to face a bad game is the suspension of the payment of the installments by the contractor. In such an eventuality a new agreement can be said to be part of the natural order of things. It can also take place through extensions of payments, which allow the borrower to catch up with the payments.

Better renegotiation or replacement?

Better renegotiation or replacement?

Very often there is a tendency to confuse renegotiation with the replacement of the mortgage. It should therefore be stressed that it is absolutely not the same thing: if in the case of renegotiation there are no additional costs, the replacement of the loan with a new one stipulated with another banking institution entails a series of costs related to its activation, for example the expenses for the preliminary investigation, the appraisal, the cancellation of the old mortgage and the launch of the new one.

Furthermore, if you intend to proceed with the scrapping of the mortgage and replace it with a new one, the sum can also be discussed and integrated again, based on renewed needs.

There is also an additional possibility, the one proposed by the subrogation, namely the replacement of the old mortgage with one turned on for the remaining sum with a second bank.

In this case, in fact, you can check better conditions and it does not become necessary to cancel the old mortgage and prepare a new one, with the cost savings that can ensue. In this case, however, you cannot ask for additional liquidity. According to experts, the surrogate is currently the most convenient solution, so much so that it is widely practiced by our compatriots.

What are the advantages of the mortgage renegotiation?

What are the advantages of the mortgage renegotiation?

From what has been said so far, it is easy to understand how to renegotiate one’s mortgage has considerable advantages in the event of the need to propose it to the counterparty. Thanks to it, in fact, it is possible to obtain new conditions capable of meeting not only the market conditions, but also the supervening needs of the borrower himself. Among the main advantages, it should be remembered:

  • the failure to pay off the loan, which would require the payment of new expenses, including that relating to the activation of the notary;
  • the maintenance of the tax bonuses that had been obtained upon the signing of the first contract;
  • the lack of additional expenses or taxes such as to weigh on the new agreement.

Mortgage renegotiation: advances 2019

Considering how the situation of the financial markets is constantly evolving, our advice is certainly to follow events with some attention. In particular, during 2019, the situation could change quite pronouncedly.

This change could be caused in particular by the planned end of Government Agency, or the support of the Medium Centrum Bank to the public debt of the dollarzone countries. In practice it is a program for the purchase of sovereign bonds and the sale of money to banks, with the specific task of supporting the so-called real economy (families and businesses).

Precisely the presence of Government Agency has allowed the dollarzone to enjoy extremely low interest rates over the past few years, a condition that has had a significant impact on financial products, starting with mortgages.

It is therefore advisable to monitor carefully what could happen in December, the month in which the program should expire. According to insiders, interest rates could rise, which would put a strain on the contracts signed, perhaps thinking that they would remain at very low levels for many years.

The new situation could in particular push many borrowers to reconsider the contract signed with the bank, perhaps going from a variable rate to a fixed rate or vice versa. In order to avoid that a renegotiation of this kind translates into damage, it is therefore necessary to try to better understand the possible developments of the economy over the next few years.