Do you want to save the total cost of your mortgage? Here you will find the key to check before performing an operation to renegotiate your mortgage points:
- First, it is essential that the remaining term of the loan currently is greater than the elapsed time.
- Eligible loans must have a lifetime long enough: it is during the first year paid what most interests.
- The principal amount outstanding must be meaningful, that is to say at least € 50,000.
- The difference between the rates currently charged and the new rate must be at least 1 point.
- Finally, the renegotiation of loan is a long to implement it takes careful planning operation.
- Renegotiate the mortgage, a regulated transactionThis can be done either with the same bank or with another bank.
- The acquisition of real estate loan can be analyzed from two points of view:
- Banks, on the one hand, consider taking a financial risk by agreeing to pay a fixed rate, so they will do everything possible to ensure that the loan to run its course.
- Individuals, on the other hand, want, when changes in interest rates permits, take advantage of lower rates to renegotiate their existing loans.
- To regulate the practice of renegotiation or redemption of credit, law framed prepayment penalties and set a maximum amount applicable to banks who receive compensation in the case where credit is replaced by a credit in another bank.
- You must pay these prepayment penalties, negotiated the purchase of the loan, as these negotiations continue to exclude the case of a redemption of loan.
For the redemption of loan is interesting, it is necessary that the gain on the total cost of credit (current cost of credit less the cost of new credit) is sufficient to cover:
- the prepayment penalties, which correspond to six months of interest with a maximum of 3% of the outstanding capital,
- the costs of setting up a new warranty (in some cases)
- the principal amount outstanding must be meaningful, that is to say at least € 50,000,
- time spent to implement the new loan and ensure all steps of account transfer.