Grouping real estate loans or renegotiating mortgage
Grouping your real estate loans or renegotiating your mortgage are two possible solutions when you want to recover some purchasing power. This intermediate solution, which is offered by multiple credit institutions and banking institutions, commits you to the long term. Entrusting its project of grouping real estate loans to the right organization is essential. This post gives you some secrets.Why use a mortgage repurchase?
Homeowners who are turning to the purchase of real estate loans are looking to reduce their debt ratio while reviewing their purchasing power on the rise. The repurchase of mortgages is, in particular, very popular when the interest rate of mortgages is decreasing. Why?
Real estate loans (excluding exceptional rate mortgages) are subject to an interest rate that increases the total cost of credit. Taking advantage of the lower interest rate on mortgages, you can:
- Either lower your monthly payments while maintaining the same duration.
- Either keep the amount of your current monthly payments while decreasing the duration of the loan.
A responsible owner will always look for the best solution to optimize their budget and lighten their financing plans. In fact, if the price of the interest rate for real estate loans decreases… this is an opportunity to revalue his or her credit (s) real estate (s).
The owner then has two options:
- Renegotiate real estate loans with their credit institution (or bank).
- To buy back his mortgages by another organization.
All financial experts agree that the two options are equal since the idea remains the same. Make a consolidation or a new negotiation to take advantage of a lower interest rate than that charged on the current mortgage. For information purposes, at the beginning of 2012, the average interest rate was 4.5%, whereas in early 2016, the average interest rate was 2.5%. Considering upgrading one’s real estate loans is therefore not an option to neglect.
However, the interest rate should not be the only criterion to be taken into account, it is also necessary to analyze:
- The reputation of the financial institution.
- Benefits offered by the organization ( eg, monthly payments )
- The application of a fixed rate or a variable rate.
- The various promotional offers (absence of the expenses of files for example).
- The general conditions practiced by the establishment.
Top ranking organizations redemption of real estate loans
It would be unfair to say that one credit organization is better than another. The right organization will simply be the one that fits your needs at the desired time and according to your financial situation.