Real Estate Loan or Credit Redemption? What differences?
When the rates are at their lowest and our financial situation allows us, it can become interesting, in the context of a real estate credit in particular, to renegotiate its loan with its lender. Others, for their part, opt for a purchase of credits.
So what is the best solution between these two possibilities? What are the differences between them? Their advantages and disadvantages? We tell you everything.
The difference between a renegotiation and a repurchase of credit
When conditions permit and the rates currently in effect are lower than those stipulated in your contract, loan renegotiation with your bank is required.
However, one must be extremely vigilant and take into account, in the operation, the possible additional costs (filing fees, prepayment indemnities , insurance …), the objective remains to save money. If you and your bank have agreed on the new terms of repayment (duration, monthly payments), you will continue as before to repay your credit, but at a lower rate for you.
The repurchase or regrouping of credit
The main role of the credit union, as its name suggests, is to pool under a single monthly payment several debts previously contracted . But, if your bank refuses, at first, to renegotiate with you, this can also become a possible solution. Indeed, turning to competition is often more expensive than renegotiation, but if you get a better rate, there is nothing wrong with what others can offer you.
So rather renegotiation or repurchase of credit?
Both solutions are valid and are not to oppose. Seriously considering a buyout by another institution can be a good negotiating lever with your bank, and vice versa. In both cases, you must prepare your appointment and carefully calculate the fees and expenses incurred. And to help you do this, do not hesitate to call a professional (take into account its expenses as well) or to make yourself (free) simulations on the Internet.