?Who desn't want 331,297 Nis
One of the fundamental strategies for someone who truly wants to save is to shorten the loan period as much as possible, especially in cases where there are penalties for early termination. Often, people convince themselves to lower the monthly repayment to alleviate the economic burden, but this usually leads to extending the loan period. There may also be cases where banks try to tempt you with a lower interest rate loan, but for a longer period. However, there's no such thing as a free lunch, and sometimes it may even end up costing you more. How much more? Let's simulate a 1, 000, 000 NIS mortgage. In one offer, they asked for a 20-year term, while in another offer, they asked for a 30-year term. When shortening the period , you can get a slightly better interest rate. However, for comparison purposes, I set the interest rates at the same number that can be obtained for 30 years, so the savings are actually even greater. In the simulation you are about to see, the client will save over 330, 000 NIS, which is a significant amount of money that you would otherwise leave at the bank.
So, while it is important to avoid taking on repayments that you cannot afford, it is worth making a little effort to earn hundreds of thousands of shekels. Even an additional hundred or two hundred shekels in repayment payments can translate into tens of thousands of shekels in interest savings.