The repurchase of mortgage is undoubtedly one of the banking techniques most requested by the individuals to lighten their budget and to make savings in the long term.
Seeing your mortgage reduced by several tens of euros every month, or even paying the same installment by earning a few years, everyone is thinking about it …
Good news, it is quite possible with the repurchase of mortgage. You still have to proceed with the operation at the right time and put the odds in your favor … Are you ready? We give you the instructions in this article!
The mortgage repurchase is now!
There are still ten years, the interest rate of mortgages was high. It was necessary to count between 3% for the excellent files and 5% for the most complex files, because requiring more guarantees.
Ten years later, the fall in rates reached a record level, going from 3, to 2, then to 1% for the shortest loan terms. So, when you took out your mortgage several years ago at a rate of around 4%, the repurchase of credit offers interesting prospects.
Take the example of a house bought for 170,000 euros, using a mortgage, taken out by a couple in 2010. The amount of their loan maturities is 945 euros for 25 consecutive years.
Today, the same couple, with the same house, would benefit from monthly installments in the amount of 724 euros per month over the same period, that is to say 221 euros less and an overall savings amounting to more than 40,000 euros .
Do a simulation for the home loan buyback
The couple who took out their mortgage 10 years ago note in their entourage that the same mortgage loans are now granted at much more advantageous rates.
He therefore decides to carry out an online mortgage repurchase simulation. A nice surprise, since their new maturities would be only 875 euros for an overall saving of more than 25,000 euros, despite the administration and early repayment fees!
The rates turn out to be extremely low indeed. And even if you still read everywhere that a mortgage buyback is:
- Interesting in the first third of the credit
- To be studied on a case-by-case basis in the second third of the loan
- Uninteresting in the last third of the credit
Note that this is no longer relevant today, because current interest rates oscillate on average between 0.85% and 2%, over a loan period ranging from 15 to 30 years. They were three times higher not so long ago …
Thanks to an online simulator, you check the interest of the repurchase of credit, for your personal situation. You will quickly see the potential savings you can make.
It is now necessary to make an appointment in financial institutions to concretize your mortgage repurchase, if it is worth it …
Competition between banking institutions
Once your simulation has been carried out, after indicating your income, your expenses, your family situation, the outstanding capital of your loan, etc., you can validate your study online, free of charge and without obligation.
Thanks to this, you will quickly receive several offers from reputable banking partners, including Crédit Mutuel, Crédit Agricole, but also organizations specializing in loan redemption.
You can then compare the offers and take the time to think it over before going any further. It is even wise to use the offers received to try to negotiate with your own bank a repurchase of credit on preferential terms.
Whether you are competing or want to keep your current establishment to manage your mortgage, it is important to prepare your file well upstream. Thus, the repurchase of credit will be carried out without a hitch and you will have more credibility.
How to present a good file for the repurchase of mortgage?
To obtain a mortgage repurchase under good conditions, the offer must be particularly advantageous, in order to compensate for the ancillary costs, such as the costs of early repayment and the administration fees.
Here are some elements that will help you get your mortgage repurchase:
- A debt ratio that does not exceed 33%
- A stable job providing you with a fixed income for at least three years
- Impeccable account statements over the last twelve months, without delinquency and without intervention commission
- Savings available to offer a commercial gesture to your future banker
- And finally, yourself, the human factor is not negligible in commercial negotiation
By following these few simple tips, or by trying to get as close as possible to them, you are putting the odds in your favor so that your loan buyback file is not only accepted, but also very beneficial for you in the long term.