Loan consolidation is an attractive option to take advantage of reduced monthly payments and a more favorable repayment period. Before starting, it is essential to estimate the cost of the operation.
How to estimate the overall cost of a loan consolidation?
To make the loan consolidation calculation , several elements are to be taken into account. Thus, it is necessary to take into account several elements namely the obligatory fees as well as the ancillary costs. In order to have a clearer view on the amount of a loan consolidation, the Early Repayment Allowance or IRA is an item to consider. The IRA rate is still provided in the loan agreement. It is always of order 0.5% or even 1% of the capital remaining due at the time of the repurchase of loan. Yet, some loan agreements allow you to take advantage of more IRA reduction, such as bundling a consumer loan. The IRA rate is painfully difficult to negotiate. In order to prevent the exemption, it is advisable to carry out the operation within the same organization.
After paying the early repayment of the old loan, the borrower is free to make a subscription to a new loan. A loan consolidation is always accompanied by fees, such as processing, warranty, insurance and brokerage fees. As a general rule, the application fee is between 1% and 1.5% of the loan. They act as remuneration of the banker. These fees are only paid when the request for consolidation is granted. The guarantee fee is only paid in case of non-repayment of a mortgage. The insurance costs associated with a loan consolidation are sometimes higher. This increase is mainly due to the payment of the new contributions. Brokerage fees are mostly included in the new loan.
Calculate the consolidation of loan via an online simulator
In order to visualize only for a few minutes the cost of a loan consolidation, consolidation of loan gives access to a recognized online loan consolidation simulator. The use of this comparator allows all borrowers to find competing offers. It should be known that it also has the possibility to negotiate the cost of the consolidation of the loan advanced by the companies. In order to find the best loan condition, simply fill out the form available on the site. In order to successfully compete, it is possible for the borrower to send a request for analysis of his project to at least 3 organizations. The simulation of a loan consolidation loan consolidation is simple and non-binding.