Consolidating your mortgage or renegotiating your mortgage are two possible solutions when you want to recover a little purchasing power . This intermediate solution, which is offered by multiple credit organizations and banking institutions, commits you for the long term. Entrusting your mortgage consolidation project to the right organization is essential. This post gives you some secrets.
Why resort to a mortgage repurchase?
The owners who turn to the repurchase of mortgages seek to reduce their debt ratio while reviewing their purchasing power upwards . The repurchase of real estate loans is particularly popular when the interest rate on real estate loans is falling. Why ?
The mortgage (excluding mortgage loans at exceptional rates) is subject to an interest rate which increases the total cost of credit. By taking advantage of the lower interest rate on mortgages, you can:
- Either lower your monthly payments while keeping the same duration.
- Either keep the amount of your current monthly payments while reducing the duration of the loan.
A responsible owner will always seek the best solution to optimize his budget and reduce his financing plans. In fact, if the price of the interest rate for real estate loans decreases ... this is the opportunity to revalue his or her real estate loan (s).
The owner then has two options:
- Renegotiate your real estate loans with your credit institution (or bank).
- Have your real estate loans redeemed 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 an interest rate lower than that practiced on the mortgage in progress. For your information, at the start of 2012, the average interest rate was 4.5% while at the start of 2016, the average rate was 2.5%. Considering revaluing your mortgage is therefore not an option to be neglected.
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.
- The advantages offered by the organization ( postponement of monthly payments for example ).
- The application of a fixed rate or a variable rate .
- The various promotional offers (absence of administrative fees for example).
- The general conditions practiced by the establishment.
Ranking best mortgage repurchase organizations
It would be unfair to say that one credit agency is better than another. The right organization will simply be the one that meets your needs at the desired time and according to your financial situation .
Every quarter, the ANIL (National Agency for Information on Housing) carries out a comparative study with 7 banks. This study is based on the fixed interest rate charged for a mortgage repurchase (or a mortgage) over a period of 15 years.
Thus, in the last quarter of 2015, the top 5 of the best establishments were as follows:
- Crédit Agricole with an average rate of 2.3%.
- Crédit Mutuel with an average rate of 2.4%.
- Crédit Foncier with an average rate of 2.5%.
- Banque Postale with an average rate of 2.5%.
- Crédit Lyonnais with an average rate of 2.5%.
This classification was only carried out on a sample of organisms . There are many more that may match your search criteria. In fact, to find the right home loan repurchase organization, you have two options:
- Compare current offers using an online credit redemption comparator .
- Trust the professionalism of a broker . The broker is a professional whose mission is to find you the best mortgage repurchase on the market at the time of the request.