1) The file fees
The processing fees allow the lending institution and / or the broker to be paid. They vary from one institution to another and capped at around € 915.
They are capped at 450 € for a PAS and a PC.
They are void for an ELP and a 0 rate loan.
If the loan offer is refused, the client does not have to pay the handling fees.
The fees are negotiable, especially if you have a good record.
However the most important element of your loan offer is the TEG (Global Effective Rate). This one is obligatorily present on your loan offer is included the expenses of file. It is he who will tell you all costs included, what is the most interesting offer.
When negotiating, you have to set priorities.
If you win on the fees but lose on the rate, you will not necessarily be the final winner.
Choose your priorities: lowest rate, or early repayments without penalty or negotiation of fees.
This is for the financial institution that loaned you to pay a penalty in case of early repayment of credit (You had done for twelve years and you want to pay after 7 years)
The penalties for early repayment with the lending institution are 6 months of interest capped at 3% of the outstanding capital. Details on the prepayment are mentioned in your loan offer.
However for loans from 26/06/1999, the law prohibits the payment of penalties in case the property is sold following:
• a professional transfer,
• unemployment of one of the borrowers,
• death of one of the borrowers.
In the case of a capped adjustable loan, there should be no penalties for early repayment. However, it is necessary to check the clause in the contract.
Repayment benefits may be negotiated to be exempt. In the event of a win-win relationship, negotiate the penalties only if you think that actually during the term of the loan you will have to pay in advance. If not, point out that you are not negotiating penalties and focus on other points.
Loan insurance is mandatory and covers death and total and final disability. This insurance, required by your credit institution, is intended to protect your heirs who will be relieved of the burden of refunds in case of problems. It may also cover temporary incapacity for work or unemployment, these guarantees being optional. In concrete terms, in case of a problem, it is the insurer who takes over to repay your credit institution what you still owe him.
The rate of credit offered by your organization depends on the markets and also fluctuates depending on the banks. However, most often it incorporates the cost of insurance … A few tenths of a point less can make you realize significant savings or allow you to borrow more capital. Do not hesitate and compare!
Any mortgage offer must mention that if the death insurance disability (death cover, IAD, ITT, IPT, unemployment) may be required by the lender, the borrower has the choice of insurance.
The savings on the insurance is not negligible it can reach 50% compared to the organization where you have subscribed your credit is up to 7000 € of saving for a loan of 100000 € (loan over 30 years) .
4) he amount of the monthly payments.
The amount of the monthly payments of a mortgage or a consumer loan or a repurchase of receivables is an essential parameter before any act of purchase or subscription of a loan.
The life of a loan is governed by the monthly repayment deadlines due to creditors (credit organizations, banks). The amount of monthly payments must correspond to your income and financial means: it must not exceed a certain heading or ceiling. Your debt ratio must remain below 33%.
Consumer credit monthly payments:
Consumer loan payments are often high since the repayment term does not exceed 7 years. The higher the amount of the personal loan, the longer the monthly maturities. The monthly installments of money reserves and other revolving credits are quite low because the amounts borrowed are low. The interest rates for this type of credit are high: around 20% teg (close to usury rate).
Real estate loan :
The mortgage is a special loan because its duration is long: the repayment can be spread over 30 years, or 40 years almost a lifetime to pay debts. Before signing any loan agreement, check that your real estate investment is the best possible: fixed or variable interest rate or revisable, capped or uncapped, file fees, duration of the loan, mortgage or unsecured mortgage, monthly installments, prepayment fees? So many questions and questions to find a solution and answer.