Best credit repurchase rate.Uncategorized
The interest rate mechanism in the repurchase of loans
For any type of financing, the interest rate represents the remuneration of the bank or the credit company for the cash advance that it grants you. In the case of restructuring, USD area lenders use the Euribor rate as a benchmark, for example, to calculate their own variable rate scales, adding their trading margin to it. The current low base rates explain the very attractive proposals from lenders.
Some general reminders regarding rates
The rate applied by financial organizations allows the calculation of interest, which is added to the repayment of the capital borrowed.
When you make a request for a grouping of credits, a more or less long list of possibilities or offers is then offered to you, some with a fixed rate, others with a variable rate. If the fixed rate does not change throughout the term of the loan, the variable rate varies according to variations in the reference rate used.
In addition to the fixed rate / variable rate difference, you can read two designations:
- the “nominal rate”;
- and the “overall effective rate”.
The first is a “gross” rate which is used only to determine the amount of interest. The second, the “TEG”, represents the real rate, and allows to know the real total cost of the credit. It indeed includes all the costs linked to the operation (administrative costs, loan insurance, setting up a deposit or any other guarantee, indemnities for reimbursement of old debts in advance, etc.).
In order to protect borrowers, in order to allow them to compare different offers from different lenders, the law requires the mention of this TEG on any site or any offer of credit, including redemption.
If you have trouble finding your way around with the different technical terms, you can seek the help of Milliaway advisers. Depending on the results of your simulation, they guide you in the selection of the buy-back formula and accompany you until the contract is signed. Indeed, between several providers who indicate an equivalent interest rate, the hidden conditions significantly influence the overall cost.
Methods to find the best rate for a loan buy-back
To find the best repurchase rate of credit, it is essential to put the offers of the market in competition. To make this comparison, you can proceed “in the old way” by going around banks and specialized establishments until you come across the “ideal” proposal.
Be aware of course that this method is long, tedious and can be counterproductive if you do not master all the elements of the different proposals that may be made to you. Going through a broker or intermediary specializing in credit consolidation allows you to benefit from essential expertise for the successful completion of your procedures and also to access offers to which you would not have access by proceeding alone: Indeed, some specialized establishments only work with intermediaries.
Is the best rate the most important criterion for buying back credits?
When the monthly repayments of your various loans consume an excessive part of your monthly budget, the repurchase of credits is one of the alternatives to rebalance your finances and face the end of the month more serenely.
But when doing your research, beware, the best credit repurchase rate is not enough to conclude that the corresponding contract is the one that suits you best. You must consider the solution proposed as a whole: the adequacy of the new monthly payments with your income, the duration of engagement, the additional costs and of course all the conditions of modularity of this credit.
Duration is an essential criterion. It is by increasing it that you can lower the amount of your monthly installments until they reach a level compatible with your budgetary situation. This new monthly payment must also leave you a sum capable of covering your others fixed charges.
If the lengthening of the term therefore makes it possible to lighten the monthly payments commensurate with your financial capacity, it in turn leads to an increase in the total cost of your credit. You will therefore have to find the optimal match between the duration, the conditions and the total cost of the credit.
Do not hesitate to call on the Milliaway advisers to help you find the balance and implement the solution most suited to your personal situation.
The commitments of Milliaway
Leader in the refinancing brokerage sector, Milliaway is committed to offering you the offer that best suits your needs and your situation, allowing you to benefit from reduced monthly repayments.
- Being the intermediary between you and its partner financial institutions, Milliaway compares their respective formulas in order to submit the proposal that best meets your expectations.
- With Milliaway, you benefit from the most attractive conditions, in particular in terms of the rate offered on your new consolidated loan.
- Your monthly payments are considerably reduced thanks to a staggering over a longer period (up to 12 years if you are a tenant, up to 35 years if you own your main residence).
- All the procedures are quick with Milliaway: the response to your request will arrive in 24 or 48 hours. The provision of funds is also accelerated, as soon as your file is complete.
- In addition to a competitive rate, in order to make you realize substantial savings on the cost of your credit, Milliaway selects for you a less expensive individual borrower insurance and can help you to set up a mortgage guarantee.
- At each stage, Milliaway takes care of all the formalities until the signing of your refinancing contract with your new creditor. Having only one single loan to repay, you simplify the management of your finances.
- No payment is requested from you before the conclusion of the contract. Our intermediation commission is included in the new offer.