If you have saved money together or have come across money for some other reason, it might be an idea to settle the Jonilage you have. Jonilages often account for large parts of the expenditure for a household each month, which can be nice to get rid of.
Then if that is the finest financial thing you can do, you have to think about it. For example, if the interest rate on the loan is very low, it may be better to invest the money and keep the loan. At the same time, it is nice to get rid of all the debts you have and for that reason you may want to settle your Jonilage even if it is not the best from an economic perspective.
How you choose to do is entirely up to you. Here we will only look at what applies if you decide that it is time to settle a Jonilage early.
Resolve a Jonilage with variable interest rates
If you have a Jonilage with a variable interest rate, you can redeem it at any time without any extra costs. Thus, it is a clear advantage to have a variable interest rate if you want to settle your Jonilage early. This then variable interest rate is really only an interest rate that is fixed for three months, which means that the lender does not have a lot of costs in the future in case you would repay all or part of the loan early. In principle, they could require that you wait until the next three-month period is over before you can redeem the loan, but then it usually does not work in reality.
Resolve a Jonilage with a fixed interest rate
Fixing a Jonilage with a fixed interest rate is not as easy to do as it will cost you money. The fact that it costs has to do with the lender itself taking out a loan with a fixed interest rate during the time that you have borrowed the money to be able to lend to you. In order for the lender not to make a loss during the remaining term, you will have to pay an interest payment. However, you can always redeem a loan if you wish, this applies even if it is tied. The question is most whether it is profitable to do so or not.
How is it possible to resolve a Jonilage?
The first thing you should do if you want to settle a Jonilage is to contact your lender to get an indication if it will cost anything to redeem the Jonilage early. You can then compare this to what it would cost to keep the old Jonilage.
If you then decide that you want to redeem the Jonilage, simply contact your lender again and then decide how to transfer the money for the Jonilage, plus the possible costs.
Is it worthwhile to settle a Jonilage?
It is the future interest rate that largely determines whether it is profitable or not to settle a Jonilage early. If interest rates go up, it may very well be profitable, but if interest rates go down, it is not as certain that it is profitable.
This makes it impossible to give an answer to this question that applies to everyone. What you simply have to do is contact your lender to find out what it costs and then figure out for yourself whether it is profitable or not.
If you are thinking of taking a loss to get rid of the loan, it is certainly “profitable” for you to settle your Jonilage.