According to the latest observations, the average interest rate is now 2.38%, which opens a new window for grouping credits for recent loans.
Home loans granted at less than 3.5%
Since the start of the year, real estate interest rates have lost several basis points, opening up a new perspective for consolidating recently contracted loans.
For this last quarter of 2014, more than 53% of mortgage loans were granted over a repayment period of more than 20 years compared to 43.7% for the first quarter of 2014.
To date, as part of a credit real estate or mortgage consolidation, banks and institutions of credit offer average rates 2.5% on a loan period 15 years, 2.75 % over 20 years and 3.25 % over 25 years. This confirms that at the end of the year, almost all mortgage loans were taken out at less than 3.5%.
Credit consolidation: should you include your recent loan?
With the current conditions of credit which are characterized by levels of rates of interest historically low, simply follow certain principles to include loans Real recent in a project consolidation credit.
Due to the various costs that a credit consolidation can generate, these principles are assessed on the difference between the initial rate of the current loan and the new rate proposed for redemption, this principle is also assessed over the remaining term of the outstanding credit.
Currently, only a spread of 0.70 basis points, an outstanding amount of more than 300,000 dollars or a repayment duration of more than 20 years may be enough to include a recent loan in a loan consolidation project.
Interesting for mortgage loans (old and recent)
The banking operation is often recommended when taking the credit is in the first third of the repayment of its loan. However, given the historically low rate of interest, it is advisable to include a combination of credit the loans taken out several years ago.
Loans recent, that is to say, those made from 2012 to rates of between 4% and 5% over 20 years and more, can also be a combination of credit property.
Whatever the age of a credit real estate (old or new), the current situation of the market of credit enables a project mortgage consolidation.