Real estate loan repurchase.

It is possible that you have taken out a mortgage for the acquisition of your property at a rate higher than that currently in force. It is therefore in this kind of situation that a loan buy-back can become interesting.

How it works?

How it works?

Before launching into the repurchase of your mortgage, it is essential to determine if this operation will still be profitable for you even after the deduction of the financial costs annexed to this type of operation. In summary, the total cost of your loan must be attractive enough to be able to cover all costs relating to refinancing.

Thus, among the costs inherent in real estate loan repurchase operations, there are the indemnities in the event of early repayment, also called IRAs or penalties. This amount may certainly not exceed 3% of the capital remaining to be reimbursed, but they include the total of the six months of interest following the redemption request.

It is also relatively difficult to escape this type of fee except by having negotiated a cancellation of these fees in the event of redemption or reimbursement by your means, when you took out your loan from your banking establishment.
However, if the repurchase of your credit is carried out by our organization, it is impossible to cancel the IRA even in the case stated above.

In addition, you must also take into consideration the cost of the guarantee since you are taking out a new loan. The cost of this new warranty will vary depending on the current warranty you have.
If you have for example a mortgage or IPPD, the costs of raising hands will be your responsibility and a new guarantee will also have to be put in place.

In the case of a surety, for example with a Housing Credit, 0.75% of the mutual guarantee fund that you had paid when you first took out credit belongs to you. This will allow you to cover the costs of the new warranty.

Note also that you can renegotiate the rate of your credit with your current bank which can make an effort not to lose a customer! That said, it is likely that this negotiation will not lead you to take out other investments, insurance, etc. …
Even if in this case, you will not pay the IRA fees, handling fees and guarantee, your rate will certainly not be the lowest on the market. This is why the competing banks make you benefit from very attractive rates to have you as a new customer: this is what is called the “call offer”.

The procedure for buying back your mortgage

The procedure for buying back your mortgage

In order to save money while taking into account the market rates and fees mentioned above, it is essential to properly assess the costs and benefits of the mortgage buyback operation.

First, it is essential to take stock of the remaining amount you have to repay as well as the remaining term by consulting your schedule.
So, if you decide to keep the same duration for your new loan while reducing your monthly payments, several scenarios arise:

  • If you are, for example, in the first third of repayment, a new mortgage with an interest rate with at least one point below the current one is necessary to make the operation profitable.
  • If you are in the second third of repayment of your current loan, the new rate will have to be two points lower than the current one in order to be able to save money.
  • Finally, if you are in the last third of your loan repayment phase, know that a credit repurchase will be totally uninteresting for you. This option can nevertheless be considered if your income has increased since the subscription of your loan and you can afford a shorter repayment period and less debt.

It is therefore essential to be attentive to the total cost of your loan as well as the costs of real estate refinancing so that your transaction is interesting.

To sum up, monthly payments are just as important as the total cost of your loan. In addition to the gross gain that this operation can bring you, you must deduct the various redemption fees such as for example bank domiciliation fees, penalties, guarantees and handling fees in order to obtain the real net gain.

Instant loans? No problem today via the Internet! | Instant online loans

More and more borrowers are now looking for a quickly available and easy-to-apply loan product. Borrowers who appreciate flexible contract options, low interest rates and simple applications are now increasingly using an instant loan. Immediate loans are the loan offers of direct and online banks, which can be offered directly on the Internet and can be applied for “immediately” online. The variety of offers in the instant credit market segment has seen significant growth in recent years with the increase in online banks. For this reason, borrowers who are looking for a powerful instant loan offer now have the option to choose between many offers. The decisive advantage with the wide range of offers can be seen in the low interest rate level. However, the large selection also has a decisive disadvantage, comparability is hardly possible today. Borrowers who want to win the best individual loan offer for themselves cannot avoid a comparison on the Internet.

The effective interest rate

The effective interest rate

When comparing instant loans, borrowers should focus primarily on effective interest rates as the most important comparison criterion. The effective interest rate is actually variable for all instant loan offers and can be individually influenced by the borrower. Although the instant loan depends on the borrowing rate and the bank’s fees, the borrower has the option of influencing the effective interest rate over the term and loan amount as well as his own credit rating. A positive credit rating can make a decisive contribution to ensuring that the borrower can secure the best long-term interest rate. Today’s creditworthiness is measured primarily by income and Credit Bureau information. Ideally, the borrower’s earned income should be high and constant. The borrower can also influence the effective interest rate through positive Credit Bureau information, the same applies to the loan amount and term, which should be short or short. Short terms and low loan amounts are issued by the banks at a lower interest rate, since the credit default risk and capital commitment for the lending bank are lower.

The importance of term and loan amount

The importance of term and loan amount

As such, term and loan amount do not only influence the amount of the effective interest. Borrowers should always select the term and loan amount so that the repayment meets individual requirements and the liquidity burden is not too high. Borrowers with a low income in particular very often run the risk of excessive financial burdens. High rates ensure a quick reduction of the remaining debt and the associated low interest costs, but high rates also quickly increase the credit default risk.

The possibilities of repayment with an instant loan

The possibilities of repayment with an instant loan

Most banks today only offer the option of repayment in installments in connection with an instant loan. Installment repayment has become established for numerous loan offers, since in addition to a constant liquidity burden for the borrower, this also offers a low credit default risk for both contracting parties. When the installment is repaid, the entire loan amount is repaid at constant intervals and in constant installments. The installment repayment offers the borrower a quick reduction of the remaining debt, whereby the total loan costs decrease with increasing repayment. On the part of the bank, the low credit default risk should be emphasized. The bank can already record a certain proportion of the repayment after a long time.

In addition to repayment in installments, other forms of repayment are also possible for the repayment of an immediate loan, such as annuity repayment. In the case of annuity repayment, the borrower pays a fixed annuity at constant time intervals. The amount of the annuity consists of a repayment and interest part. While the repayment component increases during the term, the interest component decreases, and the borrower can make the repayment here in exactly the same amounts. The principle of installment repayment is also followed for annuity repayment; constant amounts at fixed intervals ensure that the borrower has a low risk of default.

Possible uses for instant loans

Possible uses for instant loans

As a rule, the borrower can arrange the use of an instant loan at his own discretion. This enables the borrower to use the instant loan for a wide range of purposes. Among other things, the smava instant loan is suitable for financing a car, as a loan for debt rescheduling, the financing of electronic devices and much more. on.

The advantage of quick and easy application via the Internet

The advantage of quick and easy application via the Internet

The crucial aspect that should speak for an instant loan is the quick and easy application for the loan via the Internet. Borrowers who opt for an instant loan can make the application quickly and free of charge on the website of the relevant provider. The first step in getting your dream loan is to fill out an application form. In addition to information on the desired loan, the borrower must also provide information on the person and creditworthiness in the application form. Once the information has been provided, the credit check is carried out by the bank. The credit check includes checking the Credit Bureau information. Today, instant loans without Credit Bureau are also offered, here the Credit Bureau information is not checked. If the bank comes to a positive credit decision during the credit check, the borrower can already download, print and sign the loan agreement below. The PostIdent procedure in cooperation with Deutsche Post contributes to secure contract processing. In the PostIdent procedure, the authority of the borrower is checked at a branch of Deutsche Post. The person is compared with an official photo ID (identity card, passport). Once the PostIdent has been concluded and the contract has been received by the bank, the immediate payment of the loan amount is initiated to the applicant’s account.

The position of Credit Bureau in the instant lending

The position of Credit Bureau in the instant lending

As with all other forms of credit, the Credit Bureau information provided by the borrower is rarely dispensed with for instant loans. In the course of the life of every private individual, the protection association for general credit protection collects all relevant data which could be important for taking out a loan. Here, among other things, existing tenancies, contractual obligations, subscriptions or existing or concluded loan liabilities are listed.

Compare instant loans on the Internet before signing a contract – use the loan calculator and save

Compare instant loans on the Internet before signing a contract - use the loan calculator and save

Financial portals on the Internet make it possible to quickly and free of charge compare multiple loan offers. The loan comparison is now often offered with a loan calculator, which enables the objective comparison of loans taking into account individual comparison parameters. In the loan calculator comparison, borrowers can often find information on the desired loan amount, term, use, repayment and much more. integrated. By taking personal earnings into account, the search can be tailored to individual requirements and the best loan offers can be filtered out. The loan comparison with a loan calculator can usually help the borrower to secure a lower interest rate in the long term and to lower the borrowing costs permanently.