Month after month rates are breaking records. It is all the most incredible that it is now every month a historic low!
In October 2014 we had an average fixed rate for all durations (10, 15, 20 and 25 years) at 2.29%. In February 2015 it was 1.99%! It’s a drop of over 13% in just 5 months. Also, if you have a real estate debt, you must imperatively take advantage of this opportunity to renegotiate it.
Your financial interest is obvious
If in 2010 you borrowed over 20 years at 3.60% with inflation at 1.70%, your net rate at the time was 1.90%. Today, with lasting inflation at 0.5%, your net rate now stands at 3.10%! It has become a considerable gap, the cost of which, month after month, weakens your purchasing power, impacts your standard of living and limits your savings capacity.
With a new negotiated rate of 2.10%, the monthly payment of a loan of $ 200,000 goes from $ 1,170 to $ 1,020. This is a saving of $ 150 per month!
As part of this renegotiation you will have the opportunity to take out a new loan insurance whose cost will be lower for equivalent guarantees.
In addition, contrary to popular belief, recent credits are those whose renegotiation brings the maximum financial advantage. Indeed, the duration to run remains long and you should know that at the end of the first 4 years of a credit over 20 years (20% of the duration) it is still 90% of the capital which remains due.
Renegotiating your credit is simple…
First you need to contact your banker to find out their position. If it is positive and if you agree, we recommend that you compare its offer with that of a broker.
At Good Lenders credits, network ethics prohibits “stripping Pierre to dress Paul”. With your agreement, we will negotiate as a priority for you with your bank, which is our partner. In the vast majority of cases we conduct a winning intermediation for our borrowing client and for our banking partner. The operation is quick and without financial risk since the study of financing is free. Fees are invoiced exclusively if the transaction is carried out.
Planning and organizing the renegotiation of your mortgage is an act of good management.