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Mortgage renegotiation The year 2021 is a good year to get started in real estate investment . But if several criteria push individuals to invest in the sector, the historically low level of the credit rate also makes it possible to renegotiate its mortgage.
Seize the Opportunity: Real Estate Investing in 2021
Historically low rates: take advantage of this opportunity
Since January of this year, mortgage rates applied to credit institutions have been constantly revised downwards. Indeed, during the first 5 months, mortgage rates fell by 0.05 and 0.10% respectively, for loans with a duration of 15 years and 20 years. For real estate loans with a duration of 25 years, a drop of 0.15% was observed between April and June 2016, to stabilize at 2.05%.
In order for this historically low rate to benefit them, borrowers can request a loan buy-back from a competing establishment. However, before considering it, it is recommended to do a credit simulation with a credit broker. In this way, the individual will be able to take full advantage of this low mortgage rate. Indeed, insofar as no increase is currently envisaged, the repurchase of credit allows the individual to achieve an overall saving of 38, 58 or 70 euros per monthly payment, for a respective loan duration of 15, 20 or 25 years. . .
The level of household debt has also been revised downwards. Indeed, if in February, the level of household debt was 17.6 years, it rose to 16.6 years in March. However, despite this downward trend, the number of loans granted by credit institutions has also fallen sharply. Indeed, between 2015 and 2016, the number of loans granted to individuals fell by 32.2%.
Good advice for successfully renegotiating your mortgage.
Of course, renegotiating your mortgage with your credit agency is not a foregone conclusion. In addition, unless you are a privileged customer, it is rare for the credit agency to grant a new mortgage at a lower rate. Faced with this explicit reluctance of credit institutions, the first option will be to use a credit comparator, which will allow you to choose from which establishment, the repurchase of credit will be the most advantageous.
Freeing Up Savings: Renegotiating Your Mortgage in a Low Rate Environment
Of course, the costs associated with the repurchase of credit are high. In addition, the change of credit institution leads to the opening of a new account, to which fees are attached. In this case, it is important for the borrower to highlight the advantages offered at the level of the competition. Thus, to put all the assets on his side, it is important that the individual takes care of his borrower profile. For this, the renegotiation file must be put together with the greatest care, using a mortgage broker and a lawyer if necessary.
In addition, it is important to specify that if your credit agency tries to block you to prevent you from going to the contest, it can be very interesting to consult a lawyer to see if there is not a mistake. on the overall effective rate of your credit. For more details, you can consult our previous news on this subject.
