While interest rates charged by banks and agencies have never been so low, it appears that the process of renegotiating mortgage rates or undertaking a redemption of its credits has not never been so solicited.
Renegotiation of mortgage rates
For the end of 2016, many people who want to renegotiate mortgage rates to benefit from a fixed interest rate more advantageous. Then the question arises “Is it worth renegotiating my mortgage? “. Unless you have subscribed to your current mortgage for the last two years, yes, it’s worth it to renegotiate a mortgage.
Indeed, the approach significantly reduces the total cost of borrowed money. It is said that the real estate renegotiation transaction becomes profitable for the borrower (s) from a decrease of at least 1% compared to the current interest rate. This margin makes it possible to absorb the prepayment indemnities (IRA) which are of the order of 3% of the capital remaining due, as well as all the ancillary costs.
The first reflex is to visit his banker to ask him if it is possible to renegotiate. The advantage of renegotiating with your bank is to avoid prepayment penalties that are in the order of three percent. But generally, your bank advisor will consider this leeway for calculating the total cost of credit, and will not offer you the best rate right off the bat.
So, you have to make an appointment with several banks to submit your renegotiation request. Of course, do not hesitate to present the latest proposal that has the best conditions (interest rate, amortization period, total cost of credit, etc.) in order to try to get better.
Make a redemption of his credits to reduce his monthly payments
Redeeming your credits to reduce your monthly payments is another story. Unlike the renegotiation of mortgage loans, the purchase of credits amounts to undertaking a restructuring of several credits in order to redevelop them appropriately to the repayment capacity of (s) borrowing (s). It is no longer a question of negotiating a single credit, but on the contrary, it is a question of negotiating several credits in one new credit.
And generally, when it comes to restructuring several claims in the process of repayment, it is that the debt ratio of the applicant (s) is above 33%, and that the holding of bank accounts knows a few difficulties. Or, simply, not being able to get a new cash loan because of excessive debt.
It is recommended to use an intermediary in the redemption of credit for the processing of his loan consolidation file. Your broker takes care of the complete assumption of your request of gathering of credits, in a single appointment benefiting from the offer of all its banking partners privileged and obtain for the best proposal.