How to calculate a credit buy-back?
Calculating a loan repurchase can be done through an online simulation, a tool allowing to obtain an estimate of monthly payment and rate according to the amount to be repurchased.
Calculation of credit repurchase: operation
The repurchase of credit can take two directions, either it can allow to repurchase a mortgage in order to profit from a more interesting rate, or it can propose to a borrower to regroup its credits in only one, thus facilitating the setting in place of a reduced monthly payment. The calculation method for the two operations will differ slightly depending on the amount of credits to be redeemed and the nature of the loans. When prepaying a loan, there are prepayment charges that will apply, and these will differ depending on a consumer loan and a home loan.
The type of collateral must also be taken into account when a home loan is involved in loan repurchase. Whether it is a mortgage or a surety, the repurchase of credit will require putting in place a new guarantee and removing the old one, a manipulation which can also involve costs. Finally, the calculation of this operation must also take into account borrower insurance, the latter is optional but strongly recommended by credit institutions, which can in particular refuse financing without presentation of this cover by the borrower.
Use a simulator to calculate the loan buy-back
Each situation is different, it is for this reason that it is necessary to have a personalized approach for a borrower wishing to redeem his credits. The loan buyback simulator allows you to obtain an estimate taking into account the situation and the credits outstanding for the borrower. The interest is to quickly inform the candidate for loan repurchase of the different solutions that may arise, but also to calculate the amount of the new monthly payment depending on the duration and the rate applied. You should know that for a loan repurchase, the borrower will be able to choose the repayment duration provided that the latter is compatible with its repayment capacities.
It is therefore necessary to carry out a credit buyback calculation to take into account information specific to the borrower’s situation. The simulator will need the household income as well as the amount of expenses. It will also be necessary to provide details on the amount remaining to be reimbursed for each loan concerned as well as the amount of each monthly payment in progress. The contracts for each of the credits must be brought in to verify the remaining repayment period. Finally, the borrower must specify whether he wishes to finance a new project in the operation.