Subscribe to a mortgage is a habit for the realization of a real estate project for individuals. When we talk about loans, it means that we also have to make repayments. Redeeming credit is a great way to reduce monthly payments. But, is it really advantageous? Discover what it really is.
Summary of the page
- 1 Think before you redeem your credit
- 2 Take into account the repayment term
- 3 Think about the difference in rates
- 4 What you need to do
- 5 What are you going to do?
Think before you redeem your credit
Redeeming your credit is an initiative that can be interesting. You have to think about your personal situation to avoid unpleasant surprises. A step that gives you the opportunity to know if buying back your credit is a good deal for you. You must know that the current situation is favorable for this type of operation. Real estate rates have been low for a few years. Thus, he is in favor of the operations aimed at repurchasing the credit.
Consider the repayment term
Even if redeeming your credit is advantageous for you, you must act with method. You have to think about the repayment term of your credit. In order for the redemption to be in your interest, it is necessary that the remaining term to make the repayments be 5 years. Moreover, the operation is more interesting when the repayment period reaches half of the total period.
Think about the rate difference
Apart from the repayment term, you must also take into consideration the rate of your loan. It is necessary that it be higher than the rate applied on the market. The best is that it is 1 percentage point of the rate of the loan. The amount still to be repaid is also a criterion that you must take into account.
What you need to do
To find out if redeeming your credit is interesting for you, perform a simulated buyout credit solutis.fr . Simply fill in the information required to do the simulation. You must also take note of certain information of your loan such as the Annual Effective Rate, the amount of the monthly payment, the amount of the prepayment indemnity, the nominal rate , the total and remaining duration of the repayment as well as the total amount. and remaining to repay the loan. Once the information is in hand and the simulation done, make a comparison to find out the cost if you want to redeem your credit.
What are you going to do ?
Realization of the credit redemption simulation can be done online or at a banking institution. Simulators can tell you about the financial benefits you can benefit from if you redeem your credit.
On the contrary, they can also inform you about the losses that await you. Some simulators simply give you the result of the simulation you did without the possibility to learn more. It's up to you in this case to make the comparison. Note, you must redeem your credit if the result you get plays to your advantage. Take the time to think carefully to make the right decision.