The rates for a mortgage are at a low point at the moment, which is interesting for indebted consumers who would like to buy a loan. However, it must be kept in mind that such an operation is not inconsequential and without cost. What exactly are the costs incurred by a mortgage repurchase? What tips could reduce these fees?
In the same theme
- Fill in an over-indebtedness file
- Simulate your credit redemption
- Compare Credit Buyback Offers
- Real estate buyback fees
- How to save on real estate loan redemption fees?
Real estate buyback fees
Here are the main costs related to a mortgage repurchase:
- A banker or broker will charge a bank fee corresponding to the real estate loan redemption fee. Simulation, on the other hand, is free.
- Mortgage fees: if you buy a mortgage, you will have to pay notary fees. These fees amount to approximately 2% of the amount repurchased.
- Costs of the guarantee: these are the fees of hand raised in case of a mortgage on the good. These real estate loan redemption fees occur when the credit is redeemed with the introduction of the new loan and the new guarantee.
- Insurance costs: taking out insurance covers you in case of “accident of life”, and continue to honor his monthly payments. In this case, it is the insurer who takes over the repayment of the monthly payments. It takes from 0.12% to 0.40% of borrower insurance costs.
- IRAs (Early Redemption Allowances) : they represent 3% of the outstanding capital on a redeemed real estate loan and can not exceed 3% of this capital.
How to save on real estate loan redemption fees?
It is nevertheless possible to reduce the fees listed above by applying certain tips. Here are some ideas for saving on real estate buyback fees:
To reduce the costs of repurchase mortgage, it is essential to know your rights: thus, simulation and presentation of the file to the bank are free. Similarly, there is no charge if the bank refuses the file.
Only the acceptance of the file entails costs.
To avoid certain penalties, it is advisable to choose your banking institution in case of change of sign. Indeed, some banks charge penalties for early repayment of capital, others do not. It may be interesting to compare banking institutions for an exemption from these fees. You can do this research yourself or hire a broker.
Why hire a broker to redeem his credit?
Sometimes the new institution will charge a banking fee that can be very high. Again, using a broker saves time and money on these costs. It is better to go to a broker specializing in mortgage repurchases.