Making a fixed rate buyout is imperative for you because you have heard about the danger of floating rates. The setting up of a mortgage-free buy-back is always at a fixed rate. There are however revisable rates but they are to flee.
Choose a loan pool: a fixed rate loan
The repurchase of fixed rate credit is certain: the rate of credit will not change during the loan. You can remake your budget knowing that the monthly payment will not change. This is a not insignificant guarantee. We strongly advise you to always opt for a fixed rate.
When and why is a revolving credit pool proposed?
For a repurchase of mortgage, there are variable rate loans. We never advise these loans because they are risky. But in certain specific situations, for example, when the property is on sale with an imminent sale, we know in advance that the loan will be subject to early repayment rather quickly within 2 or 3 years. So, it may be wise to benefit from a lower variable rate loan rate.
In other circumstances, it is a significant cash flow that is expected and that will settle the loan. It will be refunded before its term too.
But currently, the revisable rates are very close to fixed rates. So no interest in taking risks!
Repurchase consumer credit over 20 years
When you have a home loan contracted a long time ago, more than 8 years, it is often interesting to keep it because you paid a lot of interest during the first years of the loan. We then propose using a credit redemption simulator to spread the duration of the credit consolidation over 20 years or more. You can then renegotiate your mortgage with your bank. Fees will be limited, you will not have any prepayment penalties to pay.
At the same time, we are studying your real estate mortgage purchase and simulation consumption to compare the monthly payment obtained with the monthly payment of the preserved home loan and the monthly repayment of credit. We have at that time a credit rate, fixed rate of course, lower, if you have a mortgage share greater than 60%. If you have more personal loans than real estate loans, the loan rate will be that of a consolidation of consumer credit.