Renegotiate your mortgage loan by taking advantage of low rates.

Home mortgage rates have continued to fall, slowly but surely, since the start of 2016. And if they have experienced some stability this summer, they nevertheless remain at floor levels rarely seen until then. What encourage candidates to acquire to realize their projects, but not only: if you have a loan in progress, it is more than advantageous to renegotiate with your credit organization … or buy your loan to go elsewhere !

Increasingly attractive borrowing rates

Increasingly attractive borrowing rates

Started in 2015, the gradual drop in mortgage rates largely explains the good health of the sector over the past year, with a return to the first-time buyers market (+ 38% in one year according to this article), also encouraged by strengthening government systems and by prices which have fallen slightly.

If it surprises analysts, the constancy of the rate cut allows all the seers of the real estate market to go green. It is certainly interesting to finalize an acquisition project when the average fixed rate over 20 years has risen to 1.75%! In details :

  • The average fixed rate at 10 years is 1.30%
  • The average fixed rate at 15 years is 1.55%
  • The average fixed rate at 20 years is 1.75%
  • The average fixed rate at 25 years is 2%

And these numbers are just averages. According to the Vousfinancer barometer, since the end of June, an excellent record can hope to obtain a fixed rate over 10 years at less than 1% (0.9% exactly), over 15 years at 1.2%, over 20 years at 1.35 %, and over 25 years at 1.7%!

Depending on the type of accommodation, the average rates are (all durations combined):

  • 1.59% on the former;
  • 1.62% on the new.

If these attractive rates allow buyers to realize real estate purchase projects, whether it is to acquire property, afford a long-awaited second home, or to embark on a rental investment, not only acquisition candidates are able to benefit from it. For those who have already contracted a loan, this is the opportunity to go through the renegotiation box: there are great savings to be made!

Renegotiating your mortgage: an opportunity to seize

Renegotiating your mortgage: an opportunity to seize

Have you thought about renegotiating your home loan? With rates halved in recent years, it is in your best interest to reduce the cost of your credit. If you borrowed at 3.3% (effective average rate in 2014) a sum of 200,000 USD, your credit will cost you, in the end, nearly 88,000 USD (including insurance); Today, with an excellent file allowing you to benefit from a rate at 1.35%, the same loan would only cost you more than 43,000 USD (insurance included)! A saving of 45,000 USD.

This applies to borrowers from previous years as well as the most recent. Indeed, the fall in interest rates was so strong and rapid that the loans contracted between the end of 2015 and the beginning of 2016 have every reason to be renegotiated! If we keep the example of 200,000 USD, the difference between the rates for January 2016 over 20 years (2.4% on average) and the current rates over the same loan period, makes it possible to earn around 15,000 USD, after payment of the prepayment penalties and the costs of the new guarantee!

Tips to renegotiate your credit with your bank

Tips to renegotiate your credit with your bank

The rates are advantageous; you are ready to renegotiate to get a nice gain on your credit; all you have to do is start discussions with your bank. And there, as much to say that the difficulties begin. Because the renegotiation of the mortgage is not exactly a priority for banking establishments – and especially not in the middle of summer, when part of the staff is lacking. Banks are not required to accept renegotiation; they can refuse a discussion outright without giving an explanation.

The operation is tried, however, and it will work all the better if your relationship of trust with your banker is good, and your profile is excellent (understand: you are solvent, never in the red, ant rather than cicada, and you have some potential – in the sense that you are likely to buy other banking products). In other words, it is the best profiles who are most likely to succeed in renegotiating a bank mortgage (see on this subject a previous post).

It is up to you to show your most beautiful financial face to your banker, with account statements and a list of products acquired from this same establishment; and if the discussion gets bogged down, it’s always good to have some precise calculations close at hand to demonstrate that you will have everything to gain by going to take out a new loan from a competitor – while threatening, in the process, leave with your accounts and your savings. This will put your banker in a position to wonder if he can afford to lose a good customer.

Note that in the event of renegotiation with the bank, it may be good to wait: the rates have probably not stopped falling. In addition, as of the next school year, banks will start to launch more aggressive offers – with rates that should continue to fall, therefore – to attract new borrowers before closing their balance sheets at the end of the year.

In the absence of any positive prospect on the side of the bank, there remains a solution: the repurchase of credit.

Tips for buying back credit

Tips for buying back credit

When the bank refuses to renegotiate a mortgage, it is always possible to turn to another lending institution. The credit repurchase operation consists, as its name suggests, in buying back the remaining amount (that which has not yet been repaid) and in taking out a new mortgage loan from a competitor, so as to benefit from the lowest rates. more attractive. But beware: this procedure has a cost and is only advantageous in certain cases, which is why it is essential to do your accounts properly!

Changing the loan establishment in fact causes the following expenses:

  • Prepayment penalties. They are due when you repay all or part of your credit to the lending institution in advance, and can reach 3% of the principal remaining due (within the limit of current interest over 6 months).
  • Guarantee costs. Whether it is home loan insurance, a bank guarantee or a mortgage, these costs will have to be paid again.
  • Application fee. They are to be negotiated with the new establishment chosen, which can for example offer them as part of a commercial gesture.

For example, for a loan of 400,000 USD subscribed at the rate of 2.4% over 20 years, the costs amount to approximately 12,500 USD (two thirds for the new guarantee, one third for the prepayment penalties).

This is the reason why a repurchase of mortgage is only interesting under certain conditions:

  • When the difference between the initial rate and the new rate is greater than or equal to 1 point;
  • When you are still in the first third of your refund;
  • For significant amounts, beyond 50,000 USD (which is generally the case with a mortgage).

In any case, when you are looking to take out a new loan at a more advantageous rate, it is recommended to take the advice of a real estate broker: he will guide you through the jungle of offers and negotiate the minimum fees at pay to the new lending institution.

How to avoid the bridging loan box?

Purchase-resale loan

Purchase-resale loan

Is it better to sell first before buying or buy before selling? An eternal question that comes up when you have to move. If you buy before you sell and before you start a bridging loan, be sure to sell quickly so that you don’t end up with two monthly payments on your back. But “If you sell your property first you may have to rent out and manage two moves before finding your favorite property. Today it is possible to buy one property before having sold the other thanks to the purchase-resale loan. Most banking partners offer this very advantageous offer which will allow you to sell with confidence.

This is a new loan that will integrate the bridging loan and buy back the capital owed on your previous property. So you have two years to peacefully sell your property and once the property is sold, you repay it in advance and without penalty for the corresponding amount. The loan continues to run for the remaining term between 20 and 25 years. Think of this solution very different from the classic bridge loan since you have only one monthly payment over a longer period with the ability to wait two years before selling your property.

Indeed, this bridging loan formula is less restrictive than the traditional bridging loan and gives you time to sell your property in 24 months without the risk of ending up with two monthly payments on your back. Banks remain vigilant and do not offer these formulas in areas where the property market is relaxed, that is to say where supply exceeds demand (Editor’s note).

Another possibility to avoid the classic relay loan box

Another possibility to avoid the classic relay loan box

It is now possible, at least in bank, to sell your property to Homeloop, an express real estate agency. The latter will buy your property back in 48 hours flat. Convenient for those who want to escape the traditional bridging loan, for those who are transferred, expatriates, or those who do not want to waste time with buyers who are refused a loan or who exercise their right of withdrawal.

Homeloop is based on the American Opendoor model, which is a hit in the United States. “A unicorn valued at nearly two billion USD according to the latest information circulating in the market” (one billion a year ago).

How long does Homeloop take to make a binding purchase offer to the seller owner?

How long does Homeloop take to make a binding purchase offer to the seller owner?

Today, Homeloop is able to make a firm offer to purchase in 24 or 48 hours after the visit of a real estate expert. We make offers at market price with a discount slightly higher than the fees of a conventional agency but which allow to fully secure the sales process.

A number of our customers prefer to sell to Homeloop rather than going through a bridging loan which has an anxiety-inducing side: you are buying your new house without having sold your old property. The bank will finance you only a percentage of the value of your property and in return you have to pay interest. In addition, she asks you for a mortgage, which is not necessarily reassuring. In fact, if you find yourself unable to pay the two monthly credit payments, the bank may seize your property.

Other clients transferred abroad ask us to quickly redeem their property before their departure. Other sellers appeal to Homeloop after having experienced a withdrawal from a potential buyer.

What do you guarantee to the seller?

What do you guarantee to the seller?

The sale is completely secure. Homeloop cannot retract unlike an individual. We offer them an extremely flexible sales calendar that adapts to their needs.

Note that Homeloop can never turn against a seller for reasons of vice-concealment for example because we are real estate professionals and we buy with full knowledge of the facts. This is the reason why we carry out a fairly extensive audit of the property via the expertise carried out upstream of our purchase offer.

It is therefore now possible to sell your apartment as quickly as your car. Without having to embark on a risky bridging loan.

Credit Cards – A Good Alternative To Sms Loans

A credit card can in many ways be a good alternative to a sms loan. On the one hand, this solution is more flexible, freedom is greater and many credit cards are actually cheaper than traditional sms loans. In addition, a credit card is great for those who always want a plan B if you suddenly experience an unexpected, larger expense.

Finding a cheap and cheap credit card today is hardly difficult, since the market is basically ripping them off. There are lots of different cards to choose from, ranging from credit cards with advantageous bonus systems, credit cards with travel protection and credit cards that offer gas and food discounts. Below, we will take a closer look at some of the benefits of credit cards.

 

Credit card benefits

Credit card benefits

  • The credit card is more flexible. You apply for a certain amount of credit, but you only use as much of the credit as you need. When it comes to repayment, you can repay your debt at once or split the payment to suit your finances.
  • Many credit cards contain an interest-free period. This simply means that the credit does not cost anything if you repay the borrowed money within the interest-free period, which is usually around 45 – 60 days.
  • A travel cover is often included in connection with a credit card, which can be very advantageous for you who are often traveling. By paying the trip with this card you are automatically covered by a travel insurance, it usually includes a cancellation cover and you can in many cases also get nice discounts on hotels and air travel.
  • Most credit cards offer some kind of discounted bonus system, where you who own the card, for example, receive bonuses on all purchases you make in certain stores.
  • There are credit cards called food or gasoline cards that can give you discounts on car wash, fuel and food.

 

Quick loans or credit cards – what should I choose?

A quick loan can be a good alternative if, for example, you need to borrow something special that you know in advance what it costs, such as a holiday or home electronics. An instant payout loan can also be a great solution if you are suddenly hit by an emergency expense. If you take a quick loan directly, you can get the money already within 15 minutes, sometimes even in the evenings and weekends.

A credit card is better suited if you do not really know how much you need to borrow and when you need to borrow. Maybe you want to be sure that you can actually pay a sudden expense and then a credit card fits perfectly as a buffer alongside your payroll account and your savings. You only use as much of the credit as you wish and pay back flexibly.

 

Compare to find the best credit card

As mentioned, there are a variety of credit cards with different benefits to choose from out there. Knowing which card is the best is not always easy. In order to be satisfied with your choice, you should compare different options before you strike. This is especially important if you do not already know what you are looking for. This way you reduce the risk of buying the wrong card and by comparing you can also save money. Fortunately, there are helpful comparison services out there that help you find the very best credit card for you and your needs.

Do you want to find a favorable credit card today? Then you can compare the best cards here.