The currently very low level of interest rates allows you to consider consolidating your various loans, so as to reduce your monthly payments. This repurchase of credits can be coupled, if necessary, with obtaining additional cash, to generate security savings or to finance new projects. Explanation of the advantages of a cash buyout and the criteria to be respected.
Is it possible to combine a mortgage with consumer credit?
You have several credits in progress: whether it is a mortgage, a car or motorbike loan, consumer credit, work, etc., it is currently very interesting to ask to buy them out by a bank.
This involves combining them into a single loan – which contributes to significantly reducing the monthly repayment . A drop all the more noticeable with current interest rates.
Please note, if this maneuver makes it possible to gain purchasing power, it implies an extension of the repayment period and an increase in the total cost of the various loans.
However, with this solution, if the mortgage represents at least 60% of all loans to buy back, the new credit will be built on the basis of a mortgage, with the rates and associated durations. In this way, a motorhome, swimming pool or equipped kitchen credit can ultimately be financed over 20 years …
Is it possible to combine your credits when there is a zero rate loan?
If the repurchase of credit is very useful to clean up your budget, it cannot be built with a loan with zero rate, since this last is not transferable . Indeed, the bank behind its subscription has already received state aid and will never repay it to another organization.
In addition, if the bank has made only one mortgage (grouping the PTZ and the mortgage) , the borrower is obliged to settle the two financings, in order to be able to issue a new one. On the other hand, if the PTZ is not mortgaged, it will be possible to buy back the mortgage without integrating it.
Attention however, if it is possible to exclude the PTZ from the repurchase of credit , there remains the question of the new debt ratio. Its monthly payment, added to that of the new loan, must not exceed the maximum rate fixed by the bank.
How to get cash by buying back your credits?
The credit buyback operation can also be an opportunity to claim a little cash, without having to take out a new loan, with the inherent costs. Limited to 15% of the total amount of loan consolidation, this additional reserve of money can serve various purposes: precautionary savings, a new project, etc.
Free to use , this cash is released without proof at the time of signing the credit buy-back and it can reach the sum of 60,000 dollars, while a personal loan is limited to 20,000 dollars.
On the other hand, if it is allocated to a specific project, the funds will be granted on presentation of the paid quotes or on invoice. In this case, the sum made available may be more substantial, insofar as it is justified and does not exceed 15% of the total amount of the loan repurchase.
Do not hesitate to ask a free broker to carry out a loan buy-back simulation, with or without cash, and thus determine together, the best possible financial package in your situation.