Borrowing over 25 years as part of a credit redemption can be a very good solution, explanations about this repayment term and interest to the borrower.
Repurchase of loans: reduce the rate or the monthly payment
You can lend two directions to the purchase of credit, there is first the operation that allows you to negotiate a rate with another bank, this is called the repurchase of mortgage. This funding simply reduces the amount of interest that must be repaid by opting for a lower rate and therefore more attractive. This requires that new terms of repayment be put in place, either the borrower opts for a duration similar to its current loan and reduces its monthly payment, or it opts for a shorter duration and a monthly payment unchanged.
This operation is sometimes confused with the grouping of credits which also allows to buy not one but several credits at a time. The interest of this financing is to put everything flat to enjoy a reduced monthly payment, which is made possible with the extension of the repayment period. The rate is also reviewed, it can sometimes be lower but when the amount of credits is important, it is usually a few points above real estate rates.
Repaying your repurchase of 25-year loans
Thus, repaying a smaller monthly payment involves extending the duration, many borrowers will apply for a period of 25 years, or 300 months. The duration of 25 years is a good compromise between a lighter monthly payment and moderate interest, because indeed the longer the duration and the higher the total cost will be important, so we must find a happy medium to allow the borrower to repaying your mortgage and consumer loans in good conditions.
The choice of the duration will mainly take place according to the capacity of repayment of the household, a study is thus quickly carried out to determine the amount of the monthly payment that it is possible to refund, taking into account a margin of manœuvre . Thus, most cases involving the repurchase of at least one mortgage are proposed over a period of 25 years, this duration can obviously be refined more precisely, this is done during the study of the file.
Simulate your 25-year credit redemption
The 25-year term is a good alternative between reduced monthly payments and the total cost of credit, so we need to be able to quickly obtain a financing estimate taking into account both the amounts of loans to be bought back and the capacity of the household to be repaid. debts. This can be done directly online at the turn of a simulation, it is simply a form that allows you to solicit different credit institutions to obtain offers to buy loans over 25 years and compare the proposals. Before any subscription, a cooling off period must be respected in accordance with the credit legislation.