Why perform a credit buyback calculation?
As for a mortgage, the calculation of loan repurchase is an essential step if you plan to use this operation. It is even the first of all: you actually assess your future monthly loan repurchases.
Of course, the results have no contractual value, but they do allow you to have an idea of your new monthly payment, and therefore of the savings that you could make every month. And this, without the need to enter all the data of a conventional questionnaire.
Our tool is free, easy to use, quick to fill out, instant, anonymous and you don’t even have to move from home.
The provision of our calculators has an informative purpose. They should allow you to better understand and prepare your project.
How to use this credit redemption calculator?
There is nothing simpler, you just have to fill in the requested fields. The methods for calculating credit repurchase take into account, firstly:
- your monthly income
- your status in relation to your accommodation (tenant or owner);
- the number of consumer credits;
- if applicable, if you wish to redeem your mortgage;
- possibly other debts.
In the second step, you detail the loans to buy back. For each of them, you indicate the total monthly payments and the capital remaining due.
If you wish to have cash, specify in the field indicated the amount you need. Last step: mention the duration you want for your new loan (from 8 to 25 years).
Example of credit buyback calculation
Let’s take a basic example. Let us assume that you wish to proceed, via this credit redemption calculator, to the evaluation of your future monthly payments and to see if the operation is interesting. To do this, you enter the information requested in the simulator:
- your household’s monthly income is $ 3,000;
- you are the owner;
- you want to include your mortgage in the transaction ($ 1,000 monthly and $ 30,000 principal remaining due);
- you have 2 consumer loans to combine (750 $ monthly payments and 10 000 $ principal remaining due);
- you plan to carry out work and therefore wish to include cash of $ 20,000 in the transaction;
- wish to borrow over 25 years.
The results ? You pay a single monthly payment of $ 381.9 at an interest rate of 5%, for a total cost of credit of $ 49,137.
After the credit buyout calculation, what is the next step?
Do you know the amount of your next monthly loan repayments? To complete your analysis, you can use the other credit buyback simulation tools: your calculation of debt ratio, outstanding capital, notary fees or a preview of your future amortization schedule.
On the other hand, if your analysis is finished and you want to move up a gear and obtain a more detailed study, do not hesitate to use our credit buyback comparator.
Our tool allows you to compete with the main credit buyout organizations, and therefore access the best deals without leaving your home. You will then be contacted by one of our expert advisers who will accompany you until the signing of the restructuring offer.
Are the credit buyback calculations engaging
Whatever the types of simulation carried out, our credit buyback calculators do not commit you to anything. You can perform your amount calculations as many times as you want and you will not be approached by one of our advisers.
From a legal point of view, borrower insurance for a credit buy-back transaction is not compulsory. However, it is often required by refinancing organizations.
The repurchase of credit, what you need to know before making your request
Before you start, we remind you what you need to know before starting your buyout project.
The repurchase of credit, the principle
The goal of buying back credit is simple: combine all or part of your credits and debts into one loan. Clearly, a financial organization buys your debts from your creditors to then offer you a single loan with a recalculated repayment period. The operation must include at least 2 loans.
Note that the repurchase of credit is also called refinancing, debt restructuring or consolidation of credits.
Why use credit repurchase
The interest of the operation? You only pay one monthly payment, and you thereby reduce your debt level. Let us assume that you repay several credits per month: a mortgage, a car loan, a revolving loan and a leisure loan. By grouping your maturities into one, you reduce your debt.
But buying back can also prove to be an interesting solution for regaining savings or investment capacity (for a new project: a real estate purchase, the acquisition of a vehicle, etc.). By lowering the level of your monthly payments, you can devote more funds to another personal project.
What loans can be bundled?
Home loans, consumer loans (personal loan, revolving credit, car loan, work credit, etc.), tax debts and bank overdrafts can be redeemed.
Cash may be included in the transaction for a future project (carrying out work, financing children’s studies, etc.).
What are the types of credit repurchases
There are 2 types:
- buying back consumer loans. Only consumer loans are grouped together;
- the repurchase of mortgage credit. A mortgage is repurchased, with a taking of collateral on the borrower’s home (mortgage).
On the other hand, the grouping of credits cannot be confused with the repurchase of a mortgage which consists in renegotiating only one’s mortgage.