Simulating a credit redemption provides a first estimate of duration and monthly payment, an essential step before embarking on the loan consolidation project.
What is the purpose of the credit redemption simulation?
A credit redemption is a bank transaction that can be used to redeem a home loan or consolidate multiple loans into one. The interest of this operation is to be able to readjust the repayment conditions according to trends in the rate market, but also according to the borrower’s financial situation. If the repurchase of mortgage is generally envisaged to take advantage of more advantageous rates, the regrouping of credit is rather solicited with the aim of reducing its monthly payments durably. In both cases, an application for loan redemption must be filed with a specialized body.
Simulation is a preliminary step that makes it possible to ensure the feasibility of the credit buyback operation but also to obtain an estimate of the new repayment terms. Rate, duration, monthly payment, everything is estimated taking into account the situation of the borrower but also the amount of credits he wants to redeem. Fees are also estimated based on information provided by the borrower, for example, prepayment fees or warranty fees.
Is the redemption simulation of credit free and immediate?
All the interest of the simulation rests on the principle of its gratuitousness and its immediate result. That is to say that when a borrower requests a simulation form, he can do it at any time of the day without being forced to commit and for free. The idea is to provide a service to households wishing to buy a loan. In particular, this service offers a comparison of the loan buy-back offers offered on the market, which facilitates the identification of the best financing proposals and the comparison of rates. It should be noted that the immediate result will mainly depend on the speed of reaction of banks and credit institutions.
To compare two offers to buy credit, it is inevitably advisable to look at the rates offered but it is especially the total cost of credit that matters. That is, a low APR can sometimes hide a high TAEA (insurance rate), resulting in higher total cost than with a slightly higher rate. The simulation is precisely there to identify these differences of proposals and to make the right choice, the one that goes in the direction of the borrower.
What credits in online simulation?
The credit redemption simulation makes it possible to redeem all types of loans, namely real estate loans and consumer loans. It is sufficient to specify the complete list of loans, even those that the borrower wishes to preserve. They will be taken into account in the estimate of monthly payments to announce a monthly payment closer to the reality. Note that the borrower can also add in the credit redemption simulation an amount dedicated to a new project.