Your mortgage is too expensive? Opt for his redemption!
Did you take out a mortgage loan many years ago? When you compare the rate obtained at the time to those in force today, you see a significant difference to your disadvantage? Did you know that it was possible to renegotiate the latter?
Mortgage Loan Purchase: Definition
The purchase of mortgage credit is regularly presented under different names:
- Mortgage buyback
- Renegotiation of mortgage credit
- Mortgage Renegotiation
- Mortgage review
- Mortgage credit review
- Mortgage Refinance
- Mortgage credit refinancing
The terms used to refer to what is more commonly referred to as the “mortgage buyout” are, as you will have understood, relatively numerous.
It remains to know what is the repurchase of mortgage… Simply put, by buying your mortgage, you renegotiate or redesign it completely. Conditions are updated, as are your obligations and commitments. It is therefore the totality of the parameters of your mortgage credit that is re-studied.
Note: Be careful not to confuse mortgage repurchase and credit consolidation. Although they can be considered in parallel, they are nevertheless two separate operations.
Mortgage buyback: what are the benefits?
Opting for mortgage refinancing has a number of advantages:
- Lower interest rate: In the first place, and this is what attracts the majority of the credit repurchase candidates, you will benefit from a lower interest rate than the one you are currently subject to (in the assumption that the rate subscribed is obviously higher than the different rates in force today).
- A revised period: by buying back your mortgage, you will also have the opportunity to review the duration of it.
- Smaller monthly payments: by benefiting from a lower interest rate and a loan spread over a longer period of time, your monthly payments will be logically lightened. What to give air to your finances!
- Realize renovation work: the mortgage purchase repurchase also entitles you to re-evaluate the amounts borrowed. If you wish to carry out renovation work in your home, you will be able to include these amounts in your mortgage as such, rather than take out an additional renovation loan.
So many advantages rather seductive, you will agree! Still, it is not always wise to turn to mortgage repurchase. A number of criteria must be considered. Explanations.
The purchase of mortgage credit: advantageous? Yes, but…
Although it seems a very interesting option to opt for the purchase of mortgage credit, it should be noted that this operation generates a series of fees. If these are directly incorporated into the mortgage credit as such (and therefore you will not have to pay a dime at the time of the buyout), they should nevertheless be considered.
These fees mainly correspond to the mortgage registration fees, the raised fees, the file fees, the expertise fees, the notary fees, the re-employment allowances and other research expenses.
In order to keep the amount saved in the balance higher than the costs associated with this purchase, it is generally recommended not to use it if the term of your mortgage is less than 7 or 10 years.
Would you like to know if it is advantageous for you to use your mortgage loan? Contact us! We will be happy to inform you.