The fall in the credit rate is an open door for the repurchase of credit. It is a solution for a person who has accumulated loans. This person has a great need to reduce their debt ratio or to free up some cash. Highly possible. Especially for mortgage loans.
Optimization of reimbursements
The idea is to group the current credits into a single debt with a single financial institution. This is achievable in a particular context and especially when the situation favors the operation because it allows borrowers to optimize their repayments.
Good repayment capacity
It is possible to gather the maximum of credits and the types of credits going from consumption like the car loan, the work loan or the personal loans while passing by the mortgage. It all depends on the borrower’s debt capacity and the terms of the buyback that he must negotiate either with the initial creditor establishment or with another financing organization that accepts to refinance even tax credits or rent arrears.
The negotiation relates to the amount of the new debt, the rate applied, the amount of the monthly payments and the duration of the repayment, the costs which are quite high, the rate of the borrower insurance. The debt is smoothed. The consolidated loan is reduced and the new debt is aligned with the longest credit. The cost of the operation is often higher than the initial situation. The borrower no longer runs to several establishments to repay, but has only one contact. It sort of sanitizes the management of its loans. And if more than half of the repurchase relates to real estate, then the new loan becomes a mortgage generally with a new mortgage.
Always be well informed
First, it is important for the borrower to be well informed before getting started. Then, he can use electronic platforms which can guide him before contacting the establishment of his choice using credit comparators. Finally, it is also recommended to use the services of experienced broker in the context of large transactions which can go up to 2 million dollars over 25 years for refinanced mortgage. Typically, a rate of 2.5% is required if the borrower plans to bundle consumer loans with credit.