The mortgage schedule usually takes the form of a table with information on the distribution of the repayment of the liability, including the exact amount of installments and deadlines. Installments can be equal, balloon or decreasing.
Thanks to this schedule, it is much easier to plan your borrower’s budget and avoid any problems with timely repayment.
When does the borrower receive the repayment schedule?
You can check your mortgage schedule before you take out a loan. This detailed plan is calculated on the banking institution’s website, thanks to the mortgage calculator. The borrower gets it from the bank only after signing the loan agreement. The schedule may be in electronic or paper form.
On its basis, you can check whether we are paying the right amount of the installment on time. In addition, the borrower’s plan will tell you the remaining portion of the amount to be repaid. This is a great help in the case of decreasing installments, when the installment amount changes each month.
Can the mortgage schedule be modified?
It is worth knowing that the received loan repayment schedule may be changed. Modifications can be made at the request of the borrower, but not only. The need to make changes to the schedule may result from the grace period in repayment of the loan.
Another reason is the change in loan interest rate. If we want to change equal installments to decreasing installments, we also need to modify the repayment schedule. However, before you decide to change your loan installment, check what to choose which loan installments to choose.
Overpayment of the loan
The same applies to a change in the repayment period due to overpayment of the loan or earlier repayment of the liability. The flammable changes occur as a result of credit holidays, i.e. temporary suspension of installment repayments. It is worth taking advantage of credit holidays if you have a problem paying off your loan. Check what else you can do in this situation.
It should be borne in mind that issuing a new loan repayment schedule will not always be free. The regulations of the signed loan agreement should include information on whether additional costs will have to be raised in this respect.