Month: May 2020

Have you taken out a mortgage at a higher rate than those currently used? Do you want to know if having your current mortgage bought back is interesting for you? Svengali.com gives you some tips to help you with your calculations…

See the rates currently charged by banks. To obtain precise and personalized proposals, do not hesitate to carry out a complete simulation.

What are the costs of buying back mortgage?

When you redeem your mortgage, you have to count the costs of such an operation. The repurchase of your mortgage is only profitable for you if you save yourself more than you spend on financial costs of the operation. With a lower rate, you should get a total cost of credit that is attractive enough to offset the following costs:

– The indemnities in the event of early repayment (IRA) or penalties: they represent the total of the 6 months of interest to be followed at the time of the request for the repurchase of mortgage, but may not exceed 3% of the capital remaining due. So if you redeem your mortgage in October, the IRA will amount to the amount of interest that you should have paid until April. It is not possible for you to escape from it except if at the time of the subscription of the credit you had negotiated a cancellation of the IRA in the event of resale of the good or of advanced repayment of the credit thanks to your own funds. On the other hand, it is impossible to be exempt from IRA in the event of repurchase of the mortgage by a competing bank.

– The cost of the guarantee: a repurchase of a mortgage implies a new loan and therefore a new guarantee. Depending on your current warranty, the procedures are different:

• In the event of a mortgage, or IPPD, you must pay the costs of a show of hands and provide for the establishment of a new guarantee.
• If your current guarantee is a deposit, you recover 75% of the mutual guarantee fund that you paid when you took out the first loan. This amount allows you in large part to pay the new guarantee to put in place.

– Administrative fees payable to the bank which offers you the new loan

You can renegotiate your current rate with your bank or have your mortgage bought back by a competing bank. If your bank has no interest in renegotiating your current credit at a lower rate. She can sometimes do this to keep you as a customer! However, this remains difficult to obtain and your bank may ask you in exchange for the subscription of other products ( insurance, investment etc.).

In the case of a renegotiation of mortgage with your current bank, you do not have to pay the various costs of the repurchase of mortgage (IRA, costs of file and guarantee) but it will certainly not be able to you offer the lowest rate on the market. It’s all about negotiation!

On the other hand, competing banks are ready to make you their best offers of mortgage loans at the lowest rate on the market to count you among their new customers. These are call offers: Banks use mortgage to win new customers.

The rules of repurchase of mortgage

Depending on the rates offered on the market and the fees we have mentioned above, you need to look at the following points in order to assess the gain of such an operation and achieve the greatest savings.

Find out about your outstanding capital

From the amortization table provided by your bank when taking out your current mortgage, you can find your outstanding capital and the remaining term of your current loan. If you have lost this table, you can request it from your bank, but this service is often billed.

Evaluate the duration of your new loan

– If you want to keep the same loan term to reduce your monthly payments, take into account the following rules:

• If your current mortgage is in the first third of its repayment, you will need to obtain a new mortgage at an interest rate at least one point lower than the current loan for the transaction to be financially attractive to you. Indeed, if the difference between your current rate and the new proposed rate is not significant, the operation will not prove to be interesting taking into account the various financial costs due to the repurchase of mortgage loan (cf 1 / What are the costs? ).
• If your mortgage is in the 2nd third of its repayment but has not reached its third third, then you will need to obtain a credit rate at least 2 points lower than your current loan for this to generate a gain.
• Finally, if your mortgage is in the last third of its repayment, while redeeming it for the same duration, the operation is not financially attractive. When you repay an amortizable loan, most of the interest is in fact repaid at the start of the loan. The more you advance in your repayment, the more the share of interest in the maturities decreases. But renegotiating your credit mainly allows you to lower the interest rate, so even with a lower rate, the gain is not obvious.

– If you are ready to leave for a shorter period, (buy your mortgage while increasing your monthly payments or keeping similar monthly payments), know that the operation will necessarily be interesting. This should therefore be the preferred option if your income allows it. In fact, if your income has increased since taking out the loan, you will be able to offer yourself a shorter term and reduce the cost of your credit even more significantly, while taking out debt for less time.

In summary: At least as much as the new monthly payments proposed, you must be very attentive to the new total cost of the credit proposed to assess the gain that you will generate, without forgetting to take into account the costs inherent in the repurchase of mortgage.

When applying for a consumer loan, banks usually require us a certificate of earnings, for which we often have to wait a long time, and the employer himself is reluctant to issue them.

What are our emergency exits if we care about time? The easiest way to get quick cash is to have a bank statement to which a fixed salary is transferred.

Quick cash for holiday expenses

Then we can borrow up to tens of thousands of dollars from the bank without submitting additional documents. Banks usually require confirmation of three salary receipts or full statements for the last three months.

This is the case with an employment contract. However, if we have a mandate contract or a specific task contract, then most often the bank asks for an account statement for six or twelve months together with contracts for the same period.

What can we do if we do not have a bank account, or the salary does not affect us? We can then submit an application together with a declaration of income.

In such a situation, the bank will most often grant us a loan of from several to several thousand dollars. This loan is more difficult to obtain because it is granted only to consumers who have a good credit history in the Economic Information Bureau.

Total cost in one place

The cost of each loan – regardless of its purpose – will be checked by one indicator: APRC – the Actual Annual Interest Rate. The APRC includes all credit costs, i.e. nominal interest (which is usually shown in bold in advertisements), insurance, commission, administrative fees (sometimes called preparatory fees). Currently, the maximum nominal interest rate may not exceed four times the Good Finance rate, which is currently 2.5%.

The commission and the preparation fees are one-off, while the insurance is usually valid throughout the entire contract period. Credit insurance usually protects us in the event of incapacity for work (in which case the insurer covers, for example, the cost of installments for twelve months).

It is also worth remembering that an additional loan amount is intended for insurance and the same fees are also charged. It is the gross loan amount that will show us how much initial costs we pay. If we apply for USD 10,000 and the gross loan amount is USD 12,000, it means that the initial costs will be USD 2,000.

What else should we pay attention to when choosing a cash loan?

There are several aspects that are worth paying attention to when choosing a loan offer. First of all, pay attention to the repayment schedule – check whether interest does not constitute the majority of the interest and capital installment. Let’s look for offers in which capital installments are higher at the very beginning because, in the event of early repayment of the loan, less interest will remain to be repaid.

We also verify whether as part of APRC all costs are given. Sometimes it may happen that the insurance offered by the adviser will not be included in the total cost of the loan, which is why such an offer will seem more attractive to us.

The holiday season is not only the magic of family gatherings but also shopping fever. Marketing departments of every company available on our market are put in the highest readiness. Remember to verify before signing the contract whether this “cheap loan with a low-interest rate” is certainly as beneficial as shown in the advertisement.

Life puts us sometimes in difficult situations in which only a certain amount of money can solve the problem. It is much harder for people in debt to try anywhere for a loan. The bank with not the best credit history will refuse to pay the loan. However, there are award companies loans to people in debt – even without checking in Credit Checker.

The uncertain economic situation in the country

Also on the labor market may make that virtually every one of us with any obligations to banks will be forced to repay the debt late. It is then easy to get negative entries in Office Credit Information and then it will be hard to get any loan, especially at the bank.

However, the loan market has developed considerably in recent years non-bank loans, which are also granted to indebted persons – even without checking in Credit Checker. Compared to a bank loan, these are granted by private companies. Non-bank loans are unfortunately a lot more expensive than bank debt although their repayment period is definitely shorter.

One of the outstanding awarding brands loans for those in debt there is definitely a Cash Maker. offers she has quick, small cash loans available on your account at an hour from submitting the online application. They are awarded as most payday loans for a short repayment period of 30 or 60 days with the option of extension.

The loan amount starts at USD 100

Good Finance operating for years on the Polish market is able to grant a loan to a person in debt with a bad history credit. Installments are paid weekly or once a month. To lower loan cost in Good Finance is worth giving up home service and paying the installment to your account Banking.

However, today the market leader in loans for indebted, without checking the customer in Credit Checker is Good Credit. The company grants loans even up to USD 25,000, which is characterized by high granting and minimum formalities.

People in debt can also apply for a mortgage loan by the bank. It is secured by the borrower’s real estate (e.g. private home).
The mortgage loan is granted for a long repayment period and for some may be a good way to finally get back on your feet. However, this loan carries there is a lot of risk behind it. In case of failure to repay the loan mortgage, a person in debt can lose his or her roof.