Many owners who have purchased real estate or have had recourse to a construction project find themselves unable to finance the renovation or embellishment work, a situation essentially linked to the real estate outstanding which restricts the possibility of subscribing a new debt. How can we proceed? How to get funding? Explanations.
When you buy an old house to renovate, it is imperative to carry out renovations simply all this is expensive, whether you do the work yourself or call on a professional craftsman. If some include part of the work in their mortgage, you should know that contingencies are common in a renovation or construction project, which leads to additional expenses not necessarily planned at the start. This work can be financed with a consumer credit but you must have the capacity to bear new debt.
The idea of many owners doing renovations or construction is simply to want to include the amount in the mortgage to take advantage of the conditions of the loan, that is to say the duration and the rate in particular. The only problem is that adding a sum to a credit in the process of being repaid is not possible because it is necessary to review the entire calculation of the cost of credit, the only solution is to buy back a mortgage. An operation to put everything back on track and if possible, to take advantage of lower rates.
The repurchase of real estate loan is a banking operation proposed by the banks and the credit institutions which makes it possible to make repurchase its loan in the course of refunding but also to be able to include the amount of work to be financed quickly, that makes it possible to start over a longer period. long and readjust the monthly payment. The borrower can therefore decide to keep a similar monthly payment and a duration which will necessarily be longer because the amount of the credit increases, or to preserve a similar duration but the monthly payment will increase.
The strength of the repurchase of credit is to adapt to the situation of the borrower, to allow him to repay maturities corresponding to his financial capacity, but also to be able to include an amount to be financed, for a property in particular. Like any credit transaction, you have to go through an online simulation service that allows you to be quickly informed of financing possibilities, then to build your file in order to obtain the funds.
If the owner has a mortgage but also other consumer loans in progress, you should know that these loans can be included in the repurchase of the mortgage, but we are talking more at this level of a consolidation operation credit. The principle remains the same except that several credits are grouped together at the same time. It is more efficient than taking over a single loan generally and the borrower benefits from a single monthly withdrawal.
