Here are the different costs that can be charged when buying back credits, an operation to reduce the amount of monthly payments.
Many borrowers who have taken out a mortgage and / or consumer loan are engaged with banking institutions that repay their loan in the form of monthly payments, ie an amount to be reimbursed each identical month if the interest rate is fixed. (more than 90% of cases in France). The redemption of credits is therefore a banking operation that offers a borrower the choice to collect its loans in a single loan at reduced monthly rate. Each month, the borrower then reimburses a lower total monthly payment, allowing to rebalance his budget and reduce the debt ratio. In addition, during this operation, the borrower may also be granted an additional amount, under certain conditions. The borrower must have an assigned project (purchase of a vehicle, works, travel) and he must be able to respect the terms of the contract.
The total amount of the new loan includes several types of fees depending on the amount redeemed and the transaction carried out. The operation of repurchasing credits is possible thanks to an extension of the duration of the loan, which allows the reduction of the monthly payment. Depending on the type of credits, prepayment allowances may be requested. Added to this is a processing fee (banker or broker), payable only if the file is financed. Generally, it is the financial institution that is responsible for remunerating the broker in charge of the file, there is no transaction between the borrower and the broker. If there is the guarantee of a mortgage in the operation, then it will be necessary to provide notary fees. Added to this is the insurance fee, however the insurance remains optional but is strongly recommended. It is possible to perform a free online simulation to visualize what this operation can provide as solutions and quantify an estimate of the cost of the operation.