The renegotiation simulation: call a broker
In a favorable period, while credit rates are at their lowest, the situation has never been so profitable. The owners will have a playing card, if their mortgages are in a range of renegotiable rates, of course.
Indeed, the operation can be interesting, even pay big.
What real estate loans are to consider
As we said above, using a broker to buy credit, would be quite wise. Only, some precautions are necessary. First, the mortgage should not be “too much started” say that he still has two-thirds of the time to run. This is a standard to check with the following tips.
A spread of 1% is recommended to prevail a substantial saving, and capital remaining at least equal to 75,000 euros.
The essential question lies in the fact of the amortization table. As you have probably observed, the constant repayment according to the table of Violence, compartmentalizes the interests and the depreciation of the capital each month.
Given the low-interest rates, the amortization of the capital is at least equal to the interest charged, from the first month reimbursed. This is one more reason to start renegotiation as soon as possible.
At the end of 2015, borrowing rates were around 2.60%, today we find rates of 1.60% over 20 years, ie less than 1.4% over 15 years.
Renegotiate your mortgage
The best rate is right now, no doubt. Renegotiating your home loan with your bank would avoid financial compensation. But its calculation integrates this economy, which amounts to “revising” above current prices.
Then change bank, calculate the outstanding capital, add the prepayment fees that do not exceed more than 6 months of interest of the current loan, renegotiation of 1.6% loan recommended.
Indeed, the mortgage rate must lower the rate by at least 1% to be beneficial. The total cost of the transaction must make you substantial savings, given the current interest rate.
Only contracted a loan, suppose to find a new bank, to take into account the expenses of the guarantees.
An advantageous point to put on the table, with the new insurance borrower who can prove beneficial, provided to have been in good health since 2015.