It has never been so interesting to finance the purchase of real estate with the help of a loan. Yet, you do not have to be a recent borrower to take advantage of lower rates. The redemption of loans and the consolidation of loans are also affected by this historic decline.
Interest rates on loan redemptions have fallen
Interest rates on home loans have fallen sharply. This is the undeniable fact drawn up by professionals in the sector. Since November 2015, their average has dropped significantly. According to the Good Financeira, it stands at 1.41% for the month of September 2016.
However, during the month of October, the fall in interest rates seems to be reaching its lowest level. Indeed, a certain slowdown is observed or even a real stability. For households seeking to acquire a property, the last weeks of 2016 are decisive in their approach. Economic observers plan for a rate hike over the next year. Although this rise should not be brutal, it means that it will cost more to borrow money.
Currently, bankers must meet their 2016 targets. This leaves good trading margins for real estate buyers to obtain the most attractive interest rate.
If the economic situation benefits from the purchase of a principal residence or the rental investment, it is also favorable to the repurchase of mortgage. Because if the rates of conventional loans have fallen, it is the same for those practiced in loan buybacks.
Reduce your debt ratio with the pool of credits
The loan buyback is an operation that aims to settle a loan for a new contract with another bank. The borrower is then able to obtain a more interesting interest rate and thus achieve significant savings including reducing the duration of borrowing. If he also wants to reduce his debt ratio and even realize a new project, the borrower can turn to the loan consolidation.
This other banking operation offers the possibility of collecting several loans within a single loan. Thus, it is quite possible to combine real estate loans, consumer loans, car loans or work in a single loan. By adjusting the amount of the monthly payment obtained with the level of the borrowers’ incomes, their debt ratio will decrease. The grouping of credits allows a household that has difficulties to manage the best monthly finances.
Rates for buybacks and loan consolidations are currently attractive whether they are real estate loans or consumer loans. This is the right time to think about buying back credits.
How to get the best buyback rate?
Like home loans, you have to compare to find the most interesting financing. When it comes to pooling credit, the ideal is to go to an intermediary in bank operations. Such a specialist is in contact with several financial institutions. This diversity allows it to offer a borrower the best offer for repurchasing real estate loans or consumer loans.
In many cases, banking experts have powerful online simulation tools. This calculator on the internet makes it possible to quantify the amount of the monthly payment obtained after the buyback operation. A financial analyst will then be able to guide and assist the claimant as much as possible.
It is not necessary to have borrowed before the year 2015 to turn to a buyback. Because between January and September 2016, rates fell by 70 basis points. A reduction sufficient to make a redemption of credits interesting from an economic point of view. In conclusion, this is the time to think about it.