Reasons to renegotiate his mortgage
Buying real estate loans can serve a number of purposes, but let’s start from the beginning… When you’ve borrowed, whether it’s last year or several years ago, your credit was best suited to your situation.
Today, it may have changed: changes in your income or expenses, changes in your personal situation… These changes probably have impacts on your budget. Renegotiating your home loan may allow you to change the remaining term of repayment of your credit or the amount of monthly payments. In both cases, this will have an impact on the overall cost, downward or upward depending on your requirements.
The Credither Guide offers you to detail the different objectives of a mortgage renegotiation and the keys to success:
- Change your monthly payment
- Shorten or lengthen your duration;
- Benefit from more attractive credit rates
- Change bank;
- Reduce the total cost of your credit;
Beware, the repurchase of real estate credit should not be confused with the regrouping of credit which, it consists, to make redeem your mortgage and your credits with the consumption.
Key elements of a mortgage buyout
Beyond the objectives that you can set, it is important to have in mind a few benchmarks to take advantage of a renegotiation of real estate loans and save money:
- The remaining term of your credit: know that if you are in the last third of repayment (for example you have borrowed over 15 years and you have only 5 years of repayment), you essentially repay the capital. Renegotiating your home loan will mean re-borrowing the money you owe by adding new interest. This operation may therefore have an additional cost and not be to your advantage;
- The remaining capital, that is the amount you still have to repay, must be more than 50,000 €. If the sum is lower, the amount borrowed will be insufficient to build a financing file;
- To absorb the costs of a credit renegotiation or redemption by another bank, there must be a gap between your credit rate and current property rates. When you renegotiate your home loan with your bank, this difference may be smaller than in the context of a credit redemption by another bank because the costs are lower.