Anyone wishing to buy a home loan, has the opportunity as a future new borrower, to study for himself the potential benefit of such an operation through free mortgage simulation calculators . As mortgage rates are still relatively low at the moment, it may be worthwhile reviewing the current credit agreement. Redeeming it by a new body will eventually save money by reducing the amount of monthly repayments, but also the duration of borrowing. However, be aware of the costs associated with this type of transaction, because early repayment fees, fees and warranty can quickly increase the rating. To know if the stake is worth it, it is enough to begin to use the tools of simulation of repurchase of real estate credit on line .
How does the real estate loan buy?
While the current mortgage interest rate is much higher than those currently on the market, a borrower may be tempted to renegotiate it. He may then contact his bank or credit institution and try to obtain better terms. This is a renegotiation of its mortgage, which is a different approach to consolidation. In this case, the operation consists in looking for a new loan in a financial institution other than the one that granted the initial credit, in order to be able to benefit on the one hand from a more interesting interest rate, but also better conditions. For example, the repayment period may be longer spread out to benefit from greater financial comfort each month, or the monthly payment will be more adapted to the situation of the borrower, more or less reduced.
The repurchase of mortgage loan also makes it possible to integrate in the financial arrangement one or several other credits, that is to say loans for consumption. This requires that the share of the remaining capital of the real estate outstanding be equal to or greater than 60% . The loan (s) redeemed will therefore be prepaid by the credit institution that will manage the balance of the amounts to be paid, while the loan will begin to repay a new credit. This one benefits from monthly payments adapted to its capacity of refunding but also from better conditions, with why not a borrower insurance also renegotiated.
Real estate grouping refers to any person who has one or more outstanding loans , whether employed, retired, self-employed or public servant, tenant or owner. He may subscribe to the purchase for personal but also professional. In any case, it is important to study the situation carefully because sometimes a large amount of money can be added to the operation. Hence the need to make a simulation of redemption of real estate credit online , which is made available to Internet users. These free and very effective tools make it possible to compete with the loan organizations and especially to compare all the offers.
To reduce your debt ratio
The purchase of credit can be a good solution to reduce the debt ratio of the household and avoid being in a difficult financial situation. This is particularly important when the borrower has subscribed to several credits that are in repayment and his income is heavily impacted by these different monthly claims. To cover his debts, he is obliged to use a larger and larger part of his income and finally exposes himself to over-indebtedness because the rest to live is reduced.
The principle of the redemption of credits is precisely to fulfill the best of its debts, while reducing its debt ratio. During the financial package, it is a question of reducing the amount of monthly payments to be paid every month, which will give more comfort to daily expenses. Once all these deadlines are combined into one with a new single credit, the borrower ends up with a single monthly repayment. To get an idea of the amount of the future monthly payment, the redemption simulation of real estate loans and consumptions is particularly recommended.
To simplify the management of your budget
When several credits have been contracted, several monthly payments must be repaid. The loan consolidation solution allows you to manage only one monthly payment thanks to a single loan with a single rate . In addition, the borrower will only have to go to one credit institution, whether it is a bank or another financial institution. This solution thus makes it possible to really simplify the management of the household budget because the fact of having only one interlocutor makes it possible to see there more clearly in his personal finances. The benefits are many:
- A single fixed interest rate that is established upon the signing of the contract and throughout the life of the credit
- One refund per month, so simplified management
- A credit rating that improves because the various credit accounts will be closed, which will prove responsible behavior and more serious financial management.
The reduction in the amount of the monthly payment will also allow the borrower to replenish savings. This cash will then allow him to see the future with a serene eye and to be able again to consider the financing of new projects .
To finance your projects
When a mortgage is redeemed, the borrower has the option to include in the operation a sum of money that will be used to finance a new project. This personal project can be of various kinds, for example the realization of works, the purchase of a car or any other consumer good, or the financing of another personal project (marriage, birth, travel, studies, etc. .). The amount of this additional loan will of course be defined by the borrowing capacity of the household. It is at the time of the submission of a request for the repurchase of credits that the borrower can specify the sum he would like to have in addition to the repurchase of his outstanding credits.
The advantage of the redemption of credits is therefore not to have to subscribe to an additional credit, but to integrate directly the sum of money desired in the operation. It is therefore an additional cash (not a credit) that is added to the total amount of the new credit subscribed. It will enable the borrower to realize a new project while avoiding putting himself in a situation of heavy debt by too many credits subscribed. The amount borrowed can also be used to protect against unforeseen events. It can be defined as soon as the online credit redemption simulation.
Real estate loan buyback: with or without mortgage?
The repurchase of real estate credit consists of regrouping either a mortgage only, or accompanied by consumer credits. When the borrower is the owner, his property can be used as a mortgage, which provides the lender with a guarantee in case of inability to repay the monthly payments. We are talking about mortgage repurchase. The property will be valued and the lender will be able to seize it in case of default of the borrower. Ideally, the total amount of the repurchase of credits must reach 80% maximum of the value of the mortgaged property .
The mortgage is not systematic when you buy a mortgage, it can sometimes be avoided under certain conditions. However, since financial institutions almost always require a mortgage guarantee when there is a mortgage loan, the purchase of loans without mortgages concerns rather the recovery of consumer loans, revolving loans, tax debts or bank overdrafts, which can also be integrated, or the recovery of a real estate credit.
There is another alternative guarantee: the deposit offered by surety companies . It is then they who will provide the necessary bond to the borrower to access the purchase of credit without mortgage. This formula has the advantage of avoiding the notary fees that are mandatory when there is a mortgage and the other side to preserve his property. To benefit from it, it is necessary that the borrower presents a solid file and above all irreproachable without any payment incident whatsoever.
Credit redemption simulation: immediate response
The purpose of real estate mortgage redemption simulation is to find the best rate as well as the best terms. But above all and above all it allows to choose the type of credit and its repayment period. Many sites have an effective and easy-to-use online real estate credit redemption simulator . The applicant can fill in the fields as accurately as possible. Once all information is filled in, a first estimate of the amount of the monthly payment is displayed in a few moments. This is free and fast and then allows you to fill out the application form to obtain a first feasibility opinion.
It is only once the request is validated that a complete study is carried out by experienced analysts. The immediate result obtained will only be confirmed after this in-depth examination of the file, as the monthly payment may change depending on the nature of the credits to be purchased and the term of repayment chosen.