Low rates have been scrolling across France for several months. Declines that concern average rates and minimum rates . September was no exception: mortgage rates continue to fall. As evidenced by the Indian summer, the rates we are seeing in this fall.
Borrowing has never been cheaper . This period of rate cuts is obviously conducive to real estate purchases, but also to renegotiations of loans or repurchases of mortgage loans. Now is the time to take advantage of it! And many borrowers took the opportunity. In July 2016, the share of mortgage loan renegotiations “represents almost half of new housing loans” , underlines the Banque de France.
Home loan redemption: it’s time to renegotiate your interest rate
In such a favorable context, we advise you to buy back a mortgage in order to take advantage of the excellent conditions of the real estate market.
The cost of mortgage loans continues to fall:
- from 34 to 44% since January 1, 2016,
- from 39 to 46% over a rolling year .
In order to know if you have an interest in renegotiating your bank rate or redeeming your loan, do not hesitate to carry out a mortgage loan repurchase simulation . By redeeming your loan, you can, as the case may be, reduce your monthly payments and reduce the total duration of your loan.
For the operation to be interesting, the difference between your current rate and the rate obtained must be of the order of at least 0.7 point. Renegotiating at the start of the loan is the most advantageous period for real savings on the total cost of the mortgage.
Compare rate offers to take advantage of market conditions
You can try to lower your current borrowing rate by negotiating with your bank. Note that it is not required to reassess your mortgage rate. However, she can make an effort to keep a client. To negotiate, refer to the market credit rates (average and minimum rates, depending on your profile).
Do you want to buy back or renegotiate your borrowing rate ? Do not forget to take into account the administrative and guarantee costs which will be invoiced to you at the time of the credit repurchase.