Mortgage rates remain favorable to buyers. This is an opportunity to renegotiate his mortgage , reports Le Figaro . The share of renegotiations in loan files exceeded 20% in February last February, according to figures from the RedRose Bank.
10,000 dollars savings on average
This figure remains well below the 60% renegotiation in force at the beginning of 2017. ” After a period of relative calm, we saw a 36% increase in the number of files filed on our site in March compared to February. Among them, 15% are renegotiations “, explains Ismael Ruth of uGood Financing. Renegotiating your loan can save you a lot of money. In two thirds of cases, the borrower saves 10,000 dollars on average.
The economy will be all the more important if the loan was signed in 2015, in the first quarter of 2016. To renegotiate its credit, the borrower must meet three conditions. First, he must still be in the first half of the repayment of his loan. Then, the capital remaining to be repaid must reach at least 70,000 dollars. Finally, a gap of between 0.7 and 1 point between the current credit rate and the new credit is required.
Take the example of a credit of 250,000 dollars signed at 2.65% (excluding insurance) over 25 years in April 2015. The rate can be renegotiated at 1.5% (excluding insurance) over 20 years . The monthly payment will drop by just over 100 dollars (from 1,140 to 1,037 dollars excluding insurance), for a reduced period of two years . The borrower should save more than 28,000 dollars on the total cost of his credit, according to the simulation of uGood Financing.
This system is profitable for the buyer only if he wishes to keep his property for a few more years. The customer must take into account the prepayment charges that his bank will charge him in the transaction. Moreover, nothing obliges a bank to renegotiate a loan . However, in a context of fierce competition between banks, this operation favored by the customer can help to build long-term loyalty.