Redeeming credits: immediate simulation
If everyone knows that the redemption of credits allows renegotiation of current credits to get better terms, it is not always easy to know where to start when it is considered. To know all the different parameters of this financial transaction and to approach it as serenely as possible, the first thing to do is an online simulation. A large number of free and easy-to-use simulators are at the service of consumers on the internet. Not only do they make it possible to perform the first calculations efficiently, but in addition, thanks to an online calculator system, they give an immediate response. It can be a grouping of all loans in progress, that is to say a home loan and consumer credit, or only the mortgage.
Operating mode of the online simulator
The credit redemption simulator is a tool present on the web on an innumerable variety of sites. It is generally very practical to use, perfectly effective and it can be used for free as many times as desired. Make a simulation is accessible at any time of the day and night, without that in any way whatsoever. Simulation online, even if it is necessary to provide contact information, is not linked to any contract or commitment. Prospective borrowers can assess their eligibility for this financial transaction in record time while learning about its impact on household finances.
The way of using the credit redemption simulator is very simple. All you have to do is enter your personal and financial information and the amount of the loan (s) to be redeemed. Based on this information provided, as well as the desired repayment duration, the simulator gives an immediate response. Attention this is a first estimate, which is generated directly by an online calculation system, designed to offer an assessment closer to reality. Note that thanks to him, the repayment period can be modified to arrive at the amount of the desired monthly payment. It is possible to provide real estate loans and / or consumption, but also an additional amount for the financing of a new project (work, car, goods and services, etc.), or simply a request for cash. This first estimated approach makes it possible to make a comparison between the current financial situation of the household and that which will be proposed.
In a second time a more in-depth study will validate the immediate estimate obtained thanks to the simulator. The next step is to be contacted by a consultant to build a custom folder.
The mortgage repurchase simulator
When it comes to buying a mortgage, the simulation can have peculiarities. Indeed, the proposed result may appear with additional fees. This is notary fees in case of mortgage guarantee. This is put in place when the owner borrower puts on deposit his property when a mortgage purchase. In this case, the simulator proposes by default a purchase of credits where the mortgage fees are directly taken into account. Notary fees are added to the mortgage ratio, that is to say the value of the property offered as collateral, and finally the prepayment indemnity if applicable. All these elements are accounted for in the online simulation and will have an impact on the feasibility of financing.
When the borrower has received a zero interest credit, it is not advisable to include it in the redemption of credits. Indeed, it has some significant advantages. It can be included in the online simulation, but it must be specified whether the borrower wants to keep it or not.
The objectives of an online credit redemption simulation
If it is free and without constraints that the simulator works, it is also to prepare positively and unsurprisingly his project. In the space of a few moments, this one will establish several elements which are the rate of indebtedness, the capital remaining due, the table of depreciation, the expenses of notary in case of mortgage, and finally the amount of the news monthly installments.
The debt ratio makes it possible to know what is the share of the credits in the household budget. It will be necessary to inform the net income of the borrower and the co-borrower, the expenses and monthly expenses as well as the monthly payments of the current loans to regroup. The online simulator will be able to calculate on one side the percentage of its monthly budget devoted to the repayment of credits and the rest to live per month.
Calculating the outstanding principal is another feature of the online simulator. In a few clicks, it will show the amount of money still to be refunded to the lending institution or bank. To do this, it is necessary to indicate the amount borrowed, the duration of the credit, the real estate rate and the rate of the borrower insurance. Finally, you must also enter the date of the first payment as well as the first monthly payment.
To view the amortization table of the new credit desired, the same elements as for the calculation of the outstanding principal are requested, namely the amount borrowed, the loan term, the interest rate and the credit insurance rate. With all this information, a table of detailed repayments can be provided, showing the amortized capital and interest to be repaid.
Another important goal of fast online simulation is to evaluate whether the repurchase of credits is profitable. This is precisely the point of such an approach because it can make the right decision. Consolidation of loans can sometimes result in costs that in this case negate the benefit that such an operation could bring. These fees vary depending on several criteria, including the amount to be repurchased. They consist generally of:
- prepayment fee to settle the old mortgage
- release fees of a mortgage in order to release the property put in guarantee
- bank charges once the redemption operation has been validated
- borrower insurance fees
- fees for a new mortgage
The benefits of the operation
Consolidation of loans consists of concentrating all debts and credits to subscribe to a new loan. The specificity of this one is that it will be able to profit from a longer duration of repayment, which will make it possible to reduce the amount of the monthly payment, in spite of an increase of the total cost of the financing. The advantage is that the debt ratio can be reduced as well, which means that the remainder to live will increase. As a result, it will be possible to consider new projects. In addition, the management is simplified because there is only one monthly payment to repay, which means a single interlocutor to manage.
The advantage of going through an online comparator is to get the different offers in a few clicks, because it is not you but the tool that will from the outset give the best opportunities to buy credits. Then, by providing information on a simple form, the borrower knows immediately whether his or her file is eligible and whether or not such an organization accepts it. The complete list of documents and supporting documents to be provided is also given. The approach represents on the one hand a huge saving of time, but also of money, since the comparator finds the repurchase of credit the most advantageous.