With the current financing conditions and the prospect of reducing its monthly payments, is the acquisition of loans an interest for French households? Our experts offer you a complete tour of the subject to give you a more precise idea of the consolidation of loans.
How the loan pooling works
Firstly, consolidation and regrouping of loans means the same banking operation ( source ), that allowing to gather several loans in one . A borrower with several loans can call on a specialized organization to consolidate its loans. The organization will pay off its current loans and propose a new loan agreement with different repayment terms, ie a longer duration , a single rate and ultimately a smaller monthly payment .
The reduction of the monthly payment is possible thanks to the lengthening of the duration, which can generate an increase of the total cost of the loan. That is to say that the financing will be more expensive in the end but the monthly payment will be smaller , a logical counterpart that rebalances the budget of households owners as tenants .
What to expect with a consolidation of loans?
When the loans are settled , there is often a prepayment charge of up to 3% for real estate loans, unless there is a clause indicating the non-presence of IRAs. Then, the setting up of the financing also implies expenses of files and / or expenses of mandates, to a height of 7% on average of the amount of the file. For homeowners having a property as collateral , it will be necessary to cancel the mortgage and to hand over a new partner to the consolidation of loans , again there are notary fees.
It should be known that all these steps are managed by the specialized agency which is responsible for summarizing all costs and the cost of the operation to the borrower. The latter will only have to sign the offer of a loan agreement to obtain the reduced monthly payment the following month. Consolidation of loans remains a good solution since the reduction in the monthly payment can reach up to 60% of the current total amount . In addition, 1 French indebted out of 2, according to the INSEE, estimates to have monthly payments too heavy, a recourse to the consolidation of loans which is legitimate and which makes it possible above all to avoid financial imbalances .