The mortgage loan is replaced by the replacement of the old agreement, with a more recent and certainly more favorable one. In detail, there are several possible options, which must be studied with due care based on the specific needs of the client and the offers offered.
- The renegotiation of the loan provides for the possibility of contracting directly with the banking institution with which the original loan was stipulated, in order to modify the duration, installment frequency and repayment plan (for example, you can switch to increasing or decreasing installments) , according to customer needs).
- Conversely, the mortgage loan is replaced when it is intended to pay off the contract already in advance, with the capital obtained from the new loan. In this case, the charges borne by the customer are greater because it requires the stipulation of a new contract will incur costs of appraisal and investigation and substitute tax. In this case, the advantage is the possibility of being able to request an amount higher than the amount of the residual capital of the old mortgage loan.
- The subrogation of the mortgage loan guarantees instead the possibility of passing the debt to a different bank that offers better conditions, without necessarily having to support the costs to be able to formalize the replacement, obtaining the exclusion of penalties and other charges of any kind. The bank thus takes over the mortgage loan guarantee already registered and will have to pay off the old debt, replacing the original creditor.
The extremely low rates of recent years, today at historic lows, have made the scrapping of the mortgage loan a very usual operation, thanks to the possibility of lowering the installment without additional costs or, alternatively, obtain additional liquidity.
The consultants of Auxilia Finance are professionals in the sector and can offer a number of very appealing opportunities, in order to evaluate any possibility of improvement of their mortgage loan.