Credit for 120 months financing period.

Not an easy decision

Not an easy decision

Borrowers and lenders struggle equally with the 120-month loan. Binding to each other for 10 years is a difficult risk to calculate. Financing is not a real estate loan where the value of security is expected to grow continuously. It’s about financing a consumer wish or rescheduling. Conceivable security, such as a beautiful new car, expire within the 120 months of worthlessness.

From the lender’s perspective, only the borrower’s income security can ensure the repayment of the loan. In the past, long loan terms were primarily reserved for civil servants and civil servants. Nowadays it’s no longer like that. The credit market has adjusted to demand. Long-term consumer credit is sought and found. If, for example, 25,000 USD are to be financed with the loan for 120 months, the loan comparison shows five providers.

However, only a bank offers fixed-rate interest rates with this long term. LCB Bank would grant all applicants qualified to lend 5.89 percent APR. Despite the low interest rate, three years ago, a comparable loan would have cost around 7.5 percent, borrowers should not make rash decisions. A look at the overall financing costs shows how expensive it is to finance in the long term even when interest rates are low. 7,910.91 USD would cost the financing of 25,000 USD in our example.

Advantages and disadvantages for borrowers – consumer loans over 120 months

Advantages and disadvantages for borrowers - consumer loans over 120 months

The advantages and disadvantages of long-term financing are closely related. Financing a 120-month loan means paying off large amounts of loan in small installments. The model sounds particularly interesting for borrowers willing to reschedule. A pooling of all existing liabilities would bring “order” to the finances, only one credit rate would have to be serviced.

At the same time, long-term debt restructuring could result in noticeably more liquidity in the household budget. Because the usual consumer loans are repaid in a much shorter time. The rate for the long-term loan is therefore always significantly lower than the sum of the installment payments currently to be paid. The only risk is what the income situation will look like in a few years. Can the rate still be paid safely?

All important questions and disadvantages can be summarized under “Life risk – future”. Because nobody can look into the future. What about sickness or unemployment? Would there be a 10-year promise to pay under these circumstances? Does it make sense to hedge against credit risk with a residual debt insurance? Or is it just the 120-month loan that could make the RSV superfluous.

Take out a loan for 120 months – no credit insurance

Take out a loan for 120 months - no credit insurance

Residual debt insurance can offer insurance protection against general life risks. Compared to short terms, the high risk of taking out insurance in the event of unemployment, illness or death makes the RSV more expensive for long-term loans. If the loan is “sewn on edge” from the installment amount, there is still no reasonable reason not to insure yourself. It is better to pay significantly more than to go under in debt due to illness or unemployment.

Risk insurance becomes dispensable if the 120-month term was deliberately chosen to avoid an RSV. This option arises if the rate height “sewn on edge” would allow a significantly shorter term. It is important that the rate is calculated correctly so that the savings model works in an emergency. It must be dimensioned in such a way that payment remains possible even with sick pay or ALG 1. Nevertheless, the full term should of course not be exhausted in order not to drive up the financing costs.

The maximum rate charge serves as the basis for calculating the standing order on a savings book. Maximum rate debit minus the amount actually paid results in the savings rate. Most credit institutions grant the right to a free special payment of any amount for a loan for a 120-month financing period. You exercise this right once or twice a year.

If everything goes well, you as the borrower are neither ill nor unemployed, the loan will be paid off much faster than originally agreed. If the income situation changes undesirably negatively, the savings rate is simply that long. Due to the agreed low monthly payment, you will still not experience payment difficulties.

Lifeline debt rescheduling

Lifeline debt rescheduling

A loan for a 120-month financing period can bridge financial distress through new, lower installments. If, in this case, the credit rating is probably bad, the procedure is very delicate. We advise you to get expert, free and independent advice from a non-profit debt counseling center.

A loan for 120 months as risk financing can currently cost up to 10 percent effective interest. Paying “only” for the interest is not the point of an installment loan. With professional support and free of charge, it is simply safer to make the upcoming decisions.

Instant credit even without work – is that possible?

 

Getting an instant loan even without a bank job is a difficult task in many cases. The banks only grant their loans if you are convinced of the applicant’s creditworthiness. In addition to information from Credit Bureau, the criteria for sufficient creditworthiness are proof of an unlimited employment relationship. If an instant loan is applied for even without work, the applicant must convince the bank with other guarantees that he will be able to repay the loan.

No job doesn’t necessarily mean no income

No job doesn

If the applicant can prove a certain amount of income, for example through rental income, banks are quite willing to grant an instant loan even without work. A bank is not necessarily about a fixed employment contract, but about a fixed and regular income. This can also exist without work.

Social benefits such as Cream Bank, sickness benefit or parental benefit are non-attachable income and are therefore of no interest to the banks. Anyone who can only show these benefits should endeavor to have a guarantor for the loan.

Credit Despite Social Benefits?

Credit Despite Social Benefits?

If you only have social benefits, you should carefully consider whether a loan is really necessary. Banks have your policy not only for their own protection, but also to protect borrowers. The loan must be repaid through the monthly installments. This monthly charge can be very difficult for recipients of social benefits.

The loans should definitely have a long term, so that the monthly installments are as low as possible. If there is no other way, there is the possibility to get an instant loan even without work if the applicant can show a surety.

He agrees to guarantee the loan. This means that he steps in and pays the installments as soon as the actual borrower does not pay his installments. To be accepted by the bank, the guarantor must be creditworthy. So he must have a regular income, must not have negative entries with Credit Bureau and should not have any large loans to run so that he can still pay the installments in an emergency.

Beware of false promises

Beware of false promises

Often, an instant loan is advertised on the Internet even without work, which should work without further security. Loan seekers should be careful here. If fees are charged, just so that the application for an instant loan can be checked even without work, this is a sign of dubiousness. You should stay away from these offers, because in most cases the fee is collected but the loan is not granted.

Home loan for local government officials

France has many civil servants within its workforce, including the local civil service, these professions attached to regions, municipalities, and departments. The agent of the public service has the advantage of being well seen by the banks, in fact, the status of civil servants reassuring the lenders and even allows them to grant more attractive conditions than for an employee of the private sector. The reason being notably linked to job security and above all to the payment of salaries, the advantages granted to territorial officials may enable them to embark on a project to purchase a property.

It is, therefore, necessary to file a request with the banks specifying the nature of his project, namely the purchase of a house, an apartment or the construction of a new house. The nature of the project will make it possible to define the needs in terms of funding but also to propose a tailor-made solution for the civil servant. On the bank side, the main borrower must be a civil servant in a titular capacity or benefiting from a permanent contract. A co-borrower (spouse) can be taken into account to increase the capacity to borrow.

 

Which bank for a territorial official?

home loan

Many banks offer advantages and especially exclusive offers to state agents. If some naturally position themselves as banks dedicated to civil servants (example: BFM, CSF), others will grant equally advantageous conditions without necessarily communicating about them. It is for this reason that it is strongly advised to carry out a comparison of the offers of mortgage loans to profit from the best conditions on the market, without forgetting the conditions of direct debit. Applying for a mortgage loan simulator online is, therefore, the best solution to compare the proposals.

If the rate (APR) is important, we must not forget the repayment period, the type of guarantee offered (deposit, mortgage), and choose borrower insurance. The loss of employment guarantee is often not an obligation for public officials and, moreover, territorial officials. Care must, therefore, be taken to study the financing offers and, if necessary, call on a mortgage broker offering tailor-made procedures for civil servants.

 

Simulate your mortgage now

home loan

No need to schedule an appointment with an agency, it is possible to apply for a mortgage and receive several proposals now. Just use the simulation form, taking particular care to specify the information relating to the borrower’s situation but also at the level of the real estate purchase project. The steps can be taken before looking for real estate or after signing a promise to sell (or sales agreement). Note that the online simulation is completely free and does not require any commitment.

So it is not possible to apply for a mortgage without savings?

Having a home of your own is a dream that many see truncated by not having enough savings or liquidity. The normal thing before venturing to ask for a mortgage is to have a previous economic mattress, however that does not mean that it is essential to have some previous savings to request a mortgage loan. We tell you all about asking for a mortgage without savings.

What is a mortgage?

What is a mortgage?

A mortgage is a mortgage loan granted by financial and banking entities with the purpose of financing the acquisition of a home or property. As it is a financing with high capital, the requirements and conditions are stricter than in a conventional loan.

New mortgage law: necessary measure for the economy

Previously, mortgages had a series of associated expenses that made the loan more expensive. Therefore, it was necessary to have extra liquidity to be able to assume these extra expenses. However, this scenario has changed with the new Mortgage Law. One of the notable improvements in this new regulation is that all the processes of requesting a loan for the purchase of housing are regulated in a safer and more transparent manner.

Request a mortgage without savings; recommendations

Request a mortgage without savings; recommendations

It is recommended that when you go to subscribe your mortgage credit do not base it solely on economic issues, it would be best to take into account other aspects. Financial institutions focus on two aspects when granting loans of this type: the ability to pay and what the real guarantee is worth.

Buying a home always carries a series of responsibilities and risks that must be taken into account. Therefore, counting savings and liquidity support is always convenient to avoid falling into debt and to meet the monthly installments.

Despite having periodic income, it is advisable not to use more than 35% of these for the payment of the monthly fee. And on the issue of linkages, we would only have to accept those that are of our interest and serve to lower the interest rate.

How to request a mortgage without savings?

How to request a mortgage without savings?

First of all, we must know that the mortgage loan is a long-term payment commitment and will affect our daily economy . You should keep in mind that the greater the capital and the longer the repayment time, the more the amount to pay for the loan will be more expensive.

To apply for a mortgage you must have demonstrable stable income and not be on any type of delinquency list. If you meet these requirements you can go to the banking entities to apply for the mortgage loan, either physically or by applying for the mortgage online.

Requirements for new mortgage loans

Due to the foreclosures that happened in times of economic crisis, they have made financial institutions set more stringent rules and requirements before requesting a home purchase loan. In general, only mortgages are given that cover 80% of the appraised value of the property or the sale, always the smaller of the two. Therefore, in these cases it is necessary to provide savings of between 20% or 30% of the value of the appraisal.

So it is not possible to apply for a mortgage without savings?

So it is not possible to apply for a mortgage without savings?

However, it is true that some banks offer 100% financing of the home if you buy a property that they sell themselves. In these cases it would be easier to apply for a mortgage without savings, since in addition to the new Mortgage Law .

From Hank Morgan we recommend that if you are going to apply for a mortgage without savings, you should keep in mind that you will have less chance of being granted it . In addition, you will have to have sufficient economic capacity to be able to face the monthly installments in a responsible manner and without falling into debt.

Credit for Dental Implants – yes its possible!

Visiting the dentist is not only uncomfortable, it can also be very expensive. Everyone wants beautiful teeth that they can show everyone with a winning smile. But the statutory health insurance companies have reduced their budget and only approve a standard amount for dental restorations and dentures.

As a result, the patient has to dig deep into his pocket if he wants to have reasonable teeth. It is not uncommon for a dental restoration with implants to cost as much as a small car, which of course not everyone can pay from the postage account. Here is a loan for dental implants in the room.

The patient and the dental implants

The patient and the dental implants

If you look at the conditions of the statutory health insurance companies, you will see that the health insurance companies have been involved in implant treatment since 2005. The amount of the grant will also depend on the bonus book. Customers who go to the dentist annually to have their teeth checked are rewarded by the health insurance. The visit is recorded in a bonus book, which increases the grant for a dental restoration.

The proportion is roughly the same as setting a dental bridge to close a tooth gap. If the bonus book was kept without a missing visit, the patient can receive up to 30% fixed subsidy. Nevertheless, there is still a hefty amount left for the patient, which most cannot pay for dental implants without a loan.

In general, however, the patient can assume that he has to pay almost all costs for dental implants, since the health insurance companies only pay for basic care. Dental implants belong to the luxury class of dental treatments.

The credit for dental implants – does the dentist loan make sense?

The credit for dental implants - does the dentist loan make sense?

Before a loan for dental implants is taken out, a cost estimate must of course be made first. The cost estimate gives a financial overview of how high a loan for dental implants will be. It is made easy for the patient. Dentists know very well what prices they offer to the patient and reduce these high costs by offering financing for dental treatment. Not so few patients are more inclined to have even more implants installed because of the funding.

If the patient is lucky, his dentist will offer a loan for dental implants without interest. Those who opt for a loan from the dentist have the convenience of not having to find another lender, but they have no comparison options. If the dentist does calculate an interest rate, the customer does not know whether it is cheap or not. For this reason, several cost estimates should be obtained and with them the individual financing.

If you want to see cheap prices for many things, you should not choose the cheapest dentist for a denture. The most expensive dentist doesn’t necessarily have to be the best. Anyone who focuses on quality offers and how often the dentist has already carried out such an implant treatment can recognize my qualification accordingly.

The patient should know that the financing offered usually has a short term. After all, dentists don’t want to wait a few years at their expense. The result of this is that the installments to be paid are high. Before you decide to take out a loan for dental implants from the dentist, your personal budget should be checked.

It should be put to the test, what rate can I easily pay and to what extent do I actually have to have the expensive dental treatment. A cheap tooth restoration doesn’t make sense. Questions over questions, which the patient should answer, however, in order to actually be able to pay a loan for dental implants. Ultimately, however, the patient has to rely on the dentist’s qualifications as to which dental treatment is the best for him.

The conditions

The conditions

If the patient would prefer to take out a loan from the bank, then it is essential to carry out a loan comparison beforehand. This can be done free of charge and shows the patient loans with particularly favorable conditions. However, he should keep in mind that the interest rate shown is not relevant for all customers. If you have a good credit rating, you also get a good interest rate and vice versa. The patient receives the right interest rate for himself only with a personal offer.

He should pay attention to the annual percentage rate, because only that has combined all the costs of a loan. But not only the interest rate is important, it should also be considered whether the contract allows free special repayments. The financial situation can change at any time and the loan for dental implants could be repaid or paid early. If no special repayments have been agreed, the early redemption of a loan will be associated with costs.

It is still important to know that the dentist offers a loan without interest, so the individual loans should still be compared. Often 0% financing can be a better choice.

The possibilities

The possibilities

Whoever decides on a loan for dental implants must have a sufficiently high income, which is above the garnishment-free limit. The bank will also query the Credit bureau, in the best case it should be clean. A permanent position is also an advantage. If these conditions are met, nothing stands in the way of a loan.

But what about the patient who has a bad Credit bureau and the bank refused the loan? There are Credit bureau-free loans that come from abroad. They are advertised by credit intermediaries. The business of these intermediaries helps the seeking customer to find a suitable loan. Usually it will be a small loan without Credit bureau, which comes from Liechtenstein. This type of loan is also called Swiss credit, since a few years ago these loans came almost exclusively from Switzerland.

In order to receive a Credit bureau-free loan, the corresponding income must be available as described above and a permanent job must have existed for at least six months. The loan amount is in most cases 3,500 USD, depending on the creditworthiness it can be 5,000 USD.

The borrower should know that these loans are a little more expensive than a conventional loan, but often the only solution to get a loan at all.

How to calculate a mortgage loan rate?

The debt ratio in France is 33% maximum, here is how to calculate your own debt ratio for the subscription of a mortgage.

Home loan: calculate the debt ratio

Home loan

The debt ratio is one of the most important criteria that is studied by banks and credit organizations that grant mortgages. In France, the financial authorities authorize a maximum debt ratio of 33%, that is to say that one cannot devote more than a third of its income to the repayment of debts.

The formula for calculating the debt ratio of a home loan remains relatively simple, we divide the amount of the monthly payment in relation to the household income, then multiply by a hundred to have a percentage: Monthly payment / Income X 100 . There are two ways to calculate a debt ratio for a mortgage, we can first calculate the maximum amount that can be spent on credit repayments, we can also calculate the current debt of a borrower.

Calculate the debt with the maximum monthly payment

For example, a couple receives total income of 3000 us dollars monthly, Mr. and Mrs. each receive income of 1500 us dollars net, which amounts to 3000 us dollars net household income. They want to buy a house and would like to have an estimate of the monthly payment that they can reimburse:

  • 3000 X 33% = 990 us dollars

This couple will be able to repay a maximum of 990 us dollars in monthly loans, all types of loans combined, including the mortgage.

Calculate the debt ratio with the current mortgage

For example, a couple receives income of 2,000 us dollars and have a monthly mortgage loan of 454 us dollars. To calculate their debt, just divide 454 us dollars by 2000 and multiply the sum by one hundred to get the percentage:

  • 454/2000 X 100 = 22.70%

The household has a very comfortable debt ratio, since the latter is well below 33%.

Tips to remember about debt with a mortgage

debt

The debt ratio is very useful in the context of a mortgage loan but also in the context of daily financial management. It helps to prevent a complicated financial situation, that is to say that for borrowers who wish to obtain a mortgage, this allows them to be aware of the debt limit and it is advisable to always keep a margin of maneuver by going into debt for example between 25% and 30%.

For households that already have a mortgage, calculating debt regularly helps maintain balance in finance, especially if there are changes in income or new loans have been taken out.

How do you know if your debt is good?

debt

The debt limit is 33% but a household that is located at this limit will not be able to face an unforeseen expenditure or a fall in income, it is this type of situation that can switch into over-indebtedness, which remains an uncomfortable financial situation with significant consequences for the finances of the home.

To keep good management of your finances, you have to keep in mind the debt scale presented like this:

  • 0% to 10%: very comfortable debt ratio
  • 11% to 25%: comfortable debt ratio
  • 26% to 30%: correct debt ratio
  • 31% to 33%: limit debt ratio
  • 34% to 40%: dangerous debt ratio
  • 41% to 50%: over-indebtedness
  • 51% and more: very critical over-indebtedness

Between 0% and 30% of debt, you are in a comfort zone, there is always a risk but having flexibility allows you to anticipate changes in situations, unforeseen expenses and power restore balance in a few months.

Beyond 33% of debt and up to 50%, your situation is abnormal, it is necessary to have recourse to a solution to restore a debt lower than 33%. The repurchase of credit can be a solution to consider in order to reduce the monthly payments and spread the debts.

Beyond 50% indebtedness, it is necessary to turn to the Banque de France to file an over-indebtedness file and set up a recovery program, with in particular the use of a mediator to find solutions to debt repayment.

Simulation of credit buy-back Free & no obligation, get the best rates!

Which bank for a home loan buyout?

There are two types of a bank that can respond to a request to buy back credit. First, we identify the classic banking agencies that we will find in municipalities and agglomerations and offering retail banking. These agencies generally offer the repurchase of a pure mortgage, which is to say only the repurchase of a home loan and no other loan in progress. The idea for bank agencies is to repatriate the borrower’s bank accounts by offering him a more attractive rate than that on the loan he is currently paying back.

 

Mortgage repurchase is found in specialized credit institutions

Mortgage loans

If the borrower wishes to redeem a mortgage and possible consumer loans, he can resort to a transaction called credit consolidation. This solution is mainly offered by credit institutions which are simply subsidiaries of large banking groups. No domiciliation of accounts is requested, the credit institution simply offers the redemption of various debts and the establishment of new financing.

The first fundamental step before orienting your steps to find a bank is quite simple to define the type of financing desired, either a repurchase of mortgage only or a grouping of a mortgage.

 

Bank of credit repurchase: the borrower profile

Bank loans

The search for a bank in terms of repurchase of mortgage will, therefore, depend on the nature of the financing desired, but this is not the only element to take into account, it must also be based on the borrower profile. It is quite naturally the profile that will emerge from a simulation of credit repurchase. Different elements will be taken into account such as the profession (permanent contract, civil servant, retired), the amount of income, the number of people at home, the debt ratio as well as elements specific to the repurchase of a mortgage: duration, rate, amount to be redeemed. All these elements combined with each other will help identify one to several banks can respond favorably to the borrower’s request.

Obviously, the banks have different positions, some will favor the repurchase of long-term loans within particular mortgage guarantees, others will prefer to propose repurchase of a mortgage on a short duration with for example a bank guarantee. The fees and terms may vary from one bank to another, not to mention that each agency has a different commercial policy. It is therefore strongly advised to compare the offers to buy back mortgage loans with the various banks present on the market. This requires an online simulation, it is a naturally free process and without any commitment.

 

The choice of the bank according to the guarantee

The choice of the bank according to the guarantee

The choice of a bank for a buyout of a home loan can also be made depending on the guarantee that will be offered. There are two types of guarantees that can be obtained for a mortgage or a mortgage loan repayment, these are the bank guarantee and the mortgage. Most banks can offer the mortgage guarantee, this consists of placing a mortgage on the borrower’s real estate and performing this procedure with a notary, the only agent approved by the State to carry out a mortgage registration. Simply put, this often involves significant costs. Between the fees of the notary and the registration fees, the invoice can quickly climb.

Some banks will offer both a mortgage and a bank guarantee. The bond is clearly less expensive than a mortgage, but it is more difficult to obtain since it is a surety company that will act as a guarantor for the borrower. If the latter does not manage to repay his monthly payments, it is the surety company which will ensure the repayment of unpaid installments, he will then turn to the borrower to recover the sums due. The advantage of the deposit mainly lies in the possibility of recovering part of the costs when the reimbursement is completed. There is also no “grip” on the property. It is, therefore, necessary to go around the different banks using a credit buyback comparator, which allows directing its request for financing to the right establishment.