Principle of credit consolidation

The consolidation of loans is often confused with the operation of repurchase of mortgage because if the regrouping consists in redeeming outstanding loans, it is generally not to make savings on the interests but rather to reduce the monthly payment of the loans being reimbursed, and this inevitably involves an extension of the duration. for further clarification

The principle is therefore relatively simple since it is possible to group credits of different natures, that is to say consumer loans, housing loans but also debts (family, rent, loan between individuals). The idea is therefore to integrate all the sums due within a single contract which will consequently offer a single rate, a single duration and therefore a monthly payment revised downwards. This decrease of minus 60% if we refer to the main establishments offering these financing offers.

The repurchase of loans in the country

In the country, the repurchase of loans has long been seen as a bad transaction because it was unknown to the general public. The rate cuts and the work of the banks to publicize this financial product have made it possible to give it a more contemporary image and in line with the effects produced on household finances. Because, whether you own or rent your home, we are not immune to a payment incident or a possible change in situation that could lead to an increase in the debt ratio.

To be able to continue making projects and especially to continue to honor its loan repayments, the people no longer hesitate to redeem their consumer credit outstanding and for some to include their home loan to benefit, in the end, with a tailor-made deadline perfectly suited to their income. Now, all financial organizations offer this banking product,

The loan buy-back solution

Several credits in progress combined into one requires to buy back each loan and therefore to find a financial organization offering this type of solution. There are also several types of repurchases of which the best known are simply the repurchase of consumer loan and the repurchase of mortgage. One does not exclude the other, that is to say that it is the share of real estate outstanding which determines the nature of the financing, below 60% of real estate share, we orient ourselves on a repurchase of credit consumption, above, you will understand, this is real estate financing. This rule is quite simply extracted from the texts of laws which regulate the consumer credit and the mortgage.

Note that a repurchase of receivables induces irreparably costs, which first consist of early repayment costs (repaying a loan before its term entails costs), guarantee costs (in case of request for mortgage guarantee or surety) and administration fees and / or brokerage fees. It is also important to know that some credit companies use the term mortgage repurchase to denote the transaction involving a mortgage guarantee. This type of guarantee is the most frequent in the field of restructuring, a visit to the notary is also necessary to apply the raised hand and the drafting of the notarial act.

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