Today, the repurchase of credits including the mortgage loan is the system for which most people opt when it comes to consolidating their debts into a single payment and therefore to stop paying monthly all the credits independently of each other. others.
How does it work? To achieve it, you must take advantage of the real estate market. This means that you can offer your own real estate as security for payment or collateral in case you cannot meet all the loans or all the debts incurred. Whatever the reason, it’s a solution to pay less each month but spread the payments out over time.
To do this, you can apply for a mortgage loan on real estate and, thanks to the amount obtained, cancel all your debts.
It is important to consider the costs associated with canceling personal loans in addition to the mortgage. This involves costs of notary, cadastre, taxes, agency, insurance, etc. But at the same time, you will benefit from very favorable terms in terms of savings on monthly payments and the convenience of bringing everything together in one monthly payment.
Why refinance my mortgage?
Because it is the most requested option. Mortgages have more favorable terms for the debtor than any other type of loan you can apply for. In addition, the bank will also be protected since the real estate is a collateral for the new credit in case you cannot meet the payments.
The advantages are many, as it is one of the most interesting and demanded options by mortgage holders because it allows them to benefit from better payment terms, a mortgage at the best rate interest and therefore a better monthly repayment. The only obligation of the applicant is to gather all his credits in one and he will thus benefit from the advantage of a low rate thanks to the mortgage.
How can credit redemption help your finances?
The repurchase of credits can help your personal finances in two ways:
– It allows you to consolidate all your debts into one monthly payment. The main advantage of this process is that you will pay less interest, especially if you are able to obtain an attractive interest rate on the repurchase of credits.
– In addition, the repurchase of your credits including the mortgage loan will allow you to extend the period of repayment of your debts, which will result in a more affordable monthly payment.
However, it is important to keep in mind that this procedure is not without risks and costs that you must assess before requesting a loan buyback.
What are the costs associated with the repurchase of credits with a mortgage loan?
Since the request also involves the cancellation of all your loans to include them in one and the same monthly payment, you will have to pay fees on the cancellation of other loans and / or, in some cases, prepayment.
You will also have to formalize the new mortgage loan that you are going to contract, which will entail expenses such as the cost of opening the mortgage, the various documented legal acts and the fees of the notary who will take care of your file.
The final expense will depend on whether or not you decide to handle the loans that are going to be bundled with the mortgage through a financial intermediary, which also has fees that you will have to pay. If you do this through your bank, the various fees may not be charged when you perform the transaction. It will all depend on the goodwill of your bank, each with different rules, features, advantages and benefits and you will have to assess them for yourself.
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