With interest rates in constant decline for more than two years, it is time to consider a renegotiation or a repurchase of your mortgage. In fact, you can lighten your monthly payments or reduce the term of your loan.
Falling rates to historic thresholds
If you are in the process of paying off a mortgage, as well as other debts incurred to buy all kinds of property, you certainly want to decrease the amount you spend on them every month. With today’s low rates, substantial savings await you.
If you took out a home loan to finance your home a few years ago, your contract was certainly concluded at a rate of between 5 and 7%. However, at present, the average rate is below 3% for credits repayable over a maximum of 15 or 20 years. These very attractive offers can be found with traditional banking networks as well as with financial institutions.
Buying home loans to take advantage of low interest rates
In addition to households that take out a loan for an acquisition, the economic situation is favorable for owners who can embark on a renegotiation or a repurchase of mortgage.
If your bank accepts to revise your contract, it is the simplest, because it will be enough an endorsement. But most brands are reluctant to reduce their margin in this way, except to keep a very good customer.
If your bank refuses, opt for a group of loans. As the monthly payments are lower, your debt ratio goes down, while your remaining living increases. You can even carry out other projects or build up savings. Alternatively, the device allows you to shorten the repayment period for an equal monthly payment.
Compare well to get the best rates
To find out if you can take advantage of a mortgage buy-back, check that your initial interest rate exceeds 3%. If you have other types of debts (consumer credit for example) and the home loan represents more than 60% of the total, you can include them and the mortgage rate applies.
Take the time to compare the offers available on the market to find the best offers. Do not hesitate to use free comparators on the Internet, otherwise contact a specialized broker who will accompany you every step of the way.