Do You Want $100 Before Payday? Sat, 04 Jul 2020 14:06:10 +0000 en-US hourly 1 How To Get A Few Hundred Dollars Payout Before Payday Fri, 03 Jul 2020 08:45:15 +0000 A very simple process to get a few hundred dollars before payday

Are you looking for a quick, easy way to get $100 before payday? Our best resource can help you.

I know a couple of individuals who went through their credit card debt and paid just a small amount each month until they found out that all the late payments were keeping their interest rates high. While this might be enough to get them to the first few sites, they did not have to wait long enough to see their savings grow.

When I asked them about how they were doing, they said that the one site that was giving them a very generous amount for just one month was a site that pays you every two weeks, after a month of making payments. They would call them up to renew the agreement, but that was a deal-breaker. One person said that they paid a total of $70 for that one month.

However, it is a slow process and you will want to plan your savings correctly. To find the best website to use to make a few hundred dollars before payday, you will need to use a service that will check all the available pay day loans in your area. It will then send you an automatic email when one becomes available in your state.

You can also use your local search tool, but if you want to make sure that the site is legit, you should take a little time to look over their terms and conditions. Some sites are going to be very strict about how many people they are going to accept as a member.

Your best bet is to use a membership site, that accepts anyone and everyone, to get the best deals on payday loans. Most companies will allow you to pay $20 or so per month, to get the lowest interest rates possible.

Save money now! Don’t let credit card debt ruin your credit!

You will be amazed at how much money you can save by staying out of debt early. It does not matter what job you have, or what year it is. By using one of the top sites on the internet, you can start making hundreds of dollars before payday in just a couple of months.

These are low interest loans, and a great way to make money now. After paying for a year, you will see how much more you can save.

The internet has a lot of help to you

If you use a membership site to keep your credit in good standing, you will be able to live debt free.

Use a home computer to check your credit card statement, to prevent late payments from putting more stress on your finances. Make a plan for how you are going to pay for your bills before you apply for a payday loan, and you will be well on your way to a better future.

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Emergency Cash For Traveling Tue, 30 Jun 2020 15:46:52 +0000 How to avail emergency cash loans for travel?

For the most part, vacation loans are a great deal when you want to take your family on a vacation. If you’re planning a trip, you might be looking for a place to stay and a place to get your things, or you might need a credit card, money for food and a vacation to think about. If you’re renting an apartment, you’ll probably want to have a credit card with a high limit, so that you can take care of your emergency expenses while still enjoying your vacation.

However, there are some credit card companies that don’t offer a vacation loan at all. While they might be able to supply some basic credit card services, in many cases it’s not really possible for them to provide everything you might need on your vacation.

Why some credit card companies?

In this article, we’ll look at some of the reasons why some credit card companies don’t provide a vacation loan and some of the things that you can do if this is the case. After all, it’s sometimes possible to make it up for some small personal items by getting a prepaid debit card.

Of course, before you start searching for an emergency cash advance or other such credit card emergency you should call your credit card company and see what they say. Remember, the majority of them aren’t going to be as helpful as you might think.

For example, your account needs to be in good standing to be approved for a loan. If your card is in the process of being paid off, then your bank doesn’t have any liability whatsoever. This means they won’t give a vacation loan.

One of the reasons your card won’t be approved for an emergency cash advance is because you will need to have a very strong account history. Obviously, if you have a bad record of late payments or defaulted payments then you probably won’t be able to get the money you need. Insome cases, your bank may refuse to do business with you and they will refuse to release funds to you, even if you have a vacation to take.

Get approved with your vacation card?

If you’re approved for a vacation card, you’ll also need to find a card that meets the minimum monthly requirements. Most of the time, the minimum monthly balance that is required for your card is usually around $300. In some cases, the bank will check your income, so if you don’t have much money coming in, then this won’t be the right card for you.

You’ll also want to make sure that the amount of the card is sufficient to cover all of your emergencies. It might be a good idea to use a prepaid debit card so that you never spend more than you actually have, and you’ll never miss a payment, either.

Some of the credit card companies do provide a vacation loan, but for a very low interest rate and for emergencies only. They do have to watch their customers’ accounts and they will always attempt to reimburse any payment you make when you do receive the money from your emergency cash advance.

However, you should make sure that you will be able to make payments on time every single month. The important thing is to make sure that you will be able to handle all of your obligations, because it will be a lot easier to pay your debts later. You won’t have to worry about getting lost in the mountains or experiencing any other mishaps.

If you choose to take advantage of a vacation loan, then make sure that you are really serious about using it. Even if you have a lot of extra money, you’ll want to be sure that you are in fact able to repay your debt. Your credit card company will likely send you a formal letter notifying you that you cannot get a vacation loan because of some financial reasons, but there is nothing you can do about it once they send you the letter.

Best ways to get emergency cash?

Some of the best ways to get emergency cash for your trip is to use a prepaid debit card, which doesn’t require a credit check and doesn’t come with a much higher interest rate. It might be wise to keep a small amount of money on hand for emergencies, but if you’re unable to afford to go somewhere, then you need to know that you can get help if you need it, and that there’s no problem – your bank can help you out.

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Take out a direct bank loan Sat, 02 May 2020 06:59:12 +0000  

The direct banks, or also online banks or internet banks, are becoming increasingly aware of consumers, not least when it comes to loans. In principle, a loan is quickly taken up, especially on the Internet, where there is no personal contact between the bank advisor and the borrower, i.e. the consultation.

Take out a loan

Take out a loan

It remains to be seen how sensible it is that it is always easier for consumers to take out a loan – with the abolition of the above-mentioned inhibition threshold, more consumers will definitely choose to borrow than before. However, a loan should never be taken lightly or thoughtlessly, please consider in advance whether you actually need the loan and there is no other way to get the money you need and how you want to repay the loan.

However, the bank also takes care of the last point: checking whether you would theoretically be able to pay off a loan taken out on schedule. In order to be able to evaluate this, it is necessary for the bank to gain insight into the applicant’s financial situation or income situation by reviewing account statements, pay slips and the employment contract.

Instant loan to employees

Instant loan to employees

The employment contract must state whether the employee works on a trial basis, for a limited period or is still in training, all of which are factors that can have a positive or negative effect on a loan approval – you can only actually get a loan if you have it can also afford, and this is done not only to protect banks, but of course also to protect consumers.

Direct banks are no longer only offering instant loans to employees and civil servants: construction finance and loans for the self-employed are also possible. How cheap or expensive direct bank loans are in the end has to be found in an individual comparison: since most loans have an interest rate that is primarily based on the creditworthiness of the borrower, no general statements can be made.

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Loans With Bad Credit Tue, 28 Apr 2020 14:59:16 +0000 What Types of Loans With Bad Credit Are Available?

If you need money for an emergency or unexpected expense, then it is probably wise to consider loans with bad credit. But just what can this type of financing offer? Here is a rundown of some of the types of loans with bad credit that are available.

Cash Advance Loans

This type of loan is for people who cannot get a loan elsewhere. When you apply for a cash advance loan, the lender makes a small down payment. The reason that lenders make this small down payment is because they want to avoid the risk of them losing their assets if they do not get their money back. The lender is usually willing to take the risk of you defaulting on your loan, so in order to take the risk, they give you the cash on deposit. The down payment is about 2.5% of the amount loaned.

Refinancing Home Equity Loans

A home equity loan is a mortgage, but it also has a much lower interest rate than a regular mortgage. If you have a home that is close to the value of your home, a refinance mortgage is a great way to get your mortgage and loan payments down.

Bad Credit Debt Consolidation Loans

A bad credit debt consolidation loan is a type of loan with bad credit. In order to qualify for this type of loan, the lender will look at your financial status, determine your credit worthiness, and will evaluate your debts and make a decision on whether to make you an offer. This type of loan is good for those who have one or two debts and want to be able to pay one or more of those debts off by reducing their monthly payments.

Home Equity Loans

A home equity loan is similar to a cash advance loan, except the loan amount is higher than a cash advance loan. The interest rate will be higher than a cash advance loan and the monthly payments will be higher than a cash advance loan.

Good Credit Loans

A second mortgage is a type of loan with bad credit. When you apply for a second mortgage, you have to have a bank account and a job. The lender will not look at your credit report, but they will look at your employment and determine how much you make.

Personal Refinancing Loans

If you have bad credit, you may qualify for loans with bad credit loans. This type of loan does not require that you make any sort of down payment.

Permanent Home Equity Loans

A home equity loan is similar to a refinancing loan, but the lender will make up the difference in the amount of the monthly payments and will use the balance of the loan to pay off your debts. The balance that you pay down on the permanent loan is known as the amortization period. During the amortization period, the lender makes only the payments necessary to pay off the debt.

High Interest Auto Loans

This type of loan is designed for people who own more than one vehicle and it is used to help pay off debts. Some people go into debt because they want to use their vehicles for luxury purposes and these people could find that it would be easier to simply use the cash that they have saved for their vehicle.

Car Loans For Bad Credit

This type of loan is a little different than the others that you have seen on this page. It does not require that you have bad credit, and in fact, many companies do not require this at all. The lender will look at your current credit situation and make a decision on how much you can afford to borrow.

Bad Credit Auto Loans

This type of loan is designed for people who want to buy a car but do not have good credit and therefore, need a low interest rate. Thereare a number of banks and other lending institutions that offer these loans to people with poor credit.

So, there are some things to consider when you are looking for loans with bad credit. There are loans with bad credit that can be used for an emergency, to pay off a debt, and to help you with future loans. purchases.

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Annual termination of borrower insurance: what impact on medium-term credit rates? Mon, 16 Mar 2020 10:39:34 +0000 It was not a foregone conclusion ! After a long battle, the Constitutional Council finally ruled on Friday, January 12, on the validity of the Bourquin amendment, a measure allowing any borrower, regardless of the date of subscription of his credit, to change each year the contract of insurance borrower. If this is good news in the short term, which should generate substantial savings for certain borrowers, Lite lender, a network of 170 credit brokerage agencies wonders about the impact of such a measure in the medium term… Because the fact that all contracts can be renegotiated risks weighing on the profitability of the banks, which will have to compensate for the shortfall generated. In the end, this could contribute to the rise in mortgage lending rates in 2018, in a context of price increases too …

Elders validate annual termination of loan insurance

Elders validate annual termination of loan insurance

The Constitutional Council ruled on January 12 on the validity of the measure allowing any borrower to change each year a borrower’s insurance contract.

From now on, all loan insurance contracts, including old ones, can be terminated on the anniversary date and be replaced by another one, provided that the guarantees are equivalent and that the bank accepts this new contract.

This was already the case, for contracts signed since March 2017, as part of the Bourquin amendment (article 10 of the law of February 21, 2017) which provided for an annual right of termination beyond 1 year for all contracts.

At the end of October 2017, the Lite lender bank, had filed an appeal with the Constitutional Council to contest the application of this right of annual termination for the stock of old contracts, that is to say those signed before on February 22, 2017, banks fearing massive departures of their youngest borrowers towards cheaper insurance, which would call into question the risk pooling model.

A risk of rising credit rates …

A risk of rising credit rates ...

Indeed, in some banks, more than a third of the stock of loan contracts could be affected by the annual termination. “After the wave of renegotiations of credit rates, we will attend this year the renegotiation of loan insurance … Young people in particular will be concerned, because they are the ones who compare the most and may also have an offer of more advantageous insurance with savings at stake… This will inevitably destabilize the banking world which holds 80% of the borrower insurance market, which could have consequences, in particular on credit rates… ” analyzes Sandrine Allonier, director of You finance bank relationships.

“In the short term this is good news for borrowers, of course … But in the medium term, the fact that the stock can also be canceled will weigh on the profitability of banks. Indeed, the borrowers concerned are essentially those who have taken out a loan recently, therefore at very low rates as we have known them for 4 years, and on which the banks’ margins could become negative after the fact once the insurance is terminated… In In this context, it is certain that the banks will have to find a way either to keep their borrowers or to compensate for the shortfall, which could contribute to a gradual rise in credit rates even when we were expecting rather stable rates at the start of the year… ” analyzes Jérôme Robin, president and founder of Lite lender.

Significant savings at stake

Significant savings at stake

Against all expectations, people with illness will find it beneficial to terminate their borrower insurance. A real opportunity. As proof, this 43-year-old man suffering from melanoma who borrowed, at the beginning of 2006, $ 220,000 over 20 years with cover in the event of death at a rate of 0.72% (0.34% + 0.38% surcharges). In January 2018, it will be able to find new cheaper borrower insurance, around 0.07%, by asserting its right to be forgotten. He will thus achieve a significant saving of $ 13,500, in this case, $ 125 per month of remaining credit, according to Magnolia.

Savings also in the event of a change in situation which is not to the benefit of the insured

The same will apply in the event of a change of situation which is not to the benefit of the insured. The example of this PACS couple under 30 is the perfect illustration. In January 2016, they contracted a loan of $ 300,000 over 15 years with a loan insurance rate of 0.30%. In the meantime, the spouse changes professional activity for a so-called “at risk” profession. As some insurance delegation contracts do not distinguish between “at risk” and “traditional” professions, the couple can claim new insurance at a rate of less than 0.09% as of January 2018. They will thus realize a gain of 18,800 $, or 120 $ less expenditure per month compared to their initial insurance.

In the event of illness, it should be noted that some are considered to be very mild by certain insurers, who will not offer a premium or a minimal premium, as for diabetes.

The most significant savings for those under 40

The most significant savings for those under 40

Banks are wary of borrowing from older people. For good reason, with the years, the medical history is more numerous and the probabilities of not repaying the loan until its term are higher. “This population will therefore tend to think that it is in their interest to keep their insurance, especially if the loan was taken out several years ago. However, and even in this situation, savings are not impossible.

But unsurprisingly, the people who will make the most savings remain those under 40 in good health and with a stable professional situation: nearly 10,000 USD per person for a loan of 250,000 USD over 20 years, with a rate of initial group insurance of 0.30%, renegotiated to 0.06 according to a simulation of Magnolia. In short, 2018 is off to a good start for borrowers.

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When do I have to pay the installments for a loan? Wed, 19 Feb 2020 11:31:25 +0000 When exactly you have to start paying back your home loan depends on several factors. First, the start of repayment is affected by whether you are building or buying a house. On the other hand, the time depends on what you have agreed with the financing bank in your loan agreement. It is difficult to make a general statement about it. We will explain the common types of repayment to you.

Loan repayment when buying a house

Loan repayment when buying a house


When you buy a house, the question of when the first installment is paid can be answered quite easily. Because in the course of buying a house, the sum for the property and the house is paid out in one fell swoop, so that you can pay the entire sum for the property. This means that payment in installments will begin and begin after the loan is paid out. You can find the exact time in your bank’s financing contract.

But it can also happen that you have arranged a different date for the first installment with the bank. It is therefore advisable to take a look at the contract documents to be on the safe side.

Loan repayment for a new building

Loan repayment for a new building


However, if you are about to build or want to build a house, a little more explanation is needed to time the first installment. Because in the course of building a house, the bank transfers the money piece by piece depending on the construction phase and not in a large amount as when buying a house. If, for example, the floor slab is finished, the bank transfers the amount X to you or the corresponding construction company, and if the roof is finished, the amount Y is due and transferred.

Most of the time, you start paying interest on the bank by paying the first installment of your construction loan. For the period between the start of construction and the move-in, this means a double financial burden for the building owners, since rent for the current apartment often has to be paid. What you have to pay to the banks during the construction phase is only the interest – so you do not pay off the pure loan during the construction phase.

Example calculation

Let’s say a certain section of your house has been completed. For this, 50,000 dollars are now due, which the construction company would like to have from you. You submit the invoice to the bank and the bank transfers the money to the construction company. Then interest payments are due for the money paid out – but only for this subtotal of 50,000 dollars and not yet for the entire loan amount. In our example, you pay two percent interest a year. We show you exactly what this means for your wallet every month:

USD 50,000 x 2% interest: 12 months = around USD 83 interest per month

From the time of payment, the bank collects around EUR 83 interest per month from your account. If you need another 25,000 dollars from the bank in the next construction phase, the interest will then be added to the 83 dollars per month. This continues until the full loan amount has been paid out to you. Then you start with the repayment – that is, with the repayment of the actual loan. The rate that will be debited from your account from this point onwards consists of a portion of the repayment agreed with the bank and (in our case) two percent interest.

Agree and observe the commitment-free time

Agree and observe the commitment-free time

The bank has the money that you borrow from it for building a house ready for you. During this time, the bank cannot use or invest the money in any other way. As a rule, this can be paid with so-called commitment interest. A certain interest rate – for example 0.25 percent – of commitment interest is then calculated per month for the loan amount that has not yet been called. This can drive up the cost of mortgage lending.

It is therefore important that you agree on a provision-free period with the bank. Because then this additional interest does not accrue within twelve months, for example. However, this also means that you have to use up the entire loan within this time, otherwise commitment interest will accrue from the 13th month. This is especially important to know if construction should be delayed. Therefore, also agree with the developer on a precise schedule for when which construction phase should be completed. This will save you unnecessary interest payments.

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Credit with final installment calculator Tue, 18 Feb 2020 11:52:30 +0000 Good to know if there are problems with the loan completion calculator. Are you planning to take out a loan because of desired or urgent items such as B. have to pay for a vehicle, a cell phone, a vacation trip or other large purchases? On the other hand, you have no current pension, salary or salary income, but simply receive unemployment benefit or an education allowance?

Where can I get a credit for the final credit calculator even with bad credit ratings?

credit ans calculator

It has certainly happened to everyone before – an economic bottleneck has occurred and some invoices do not tolerate deferring payments.

Of course, a possible variant would be to borrow the money from relatives or friends. However, it is not always possible to ask relatives or acquaintances for funds for the “Credit Final Calculator”. A poor rating or entry with lender makes borrowing difficult if, on the one hand, the creditworthiness is correct and, on the other hand, no lender contribution is available.

You may not want to admit it, but you can get a loan with no credit report or bad credit. There are currently serious credit intermediaries who specialize in obtaining loans from foreign banks, companies with poor credit ratings or bad creditworthiness. Basically, the main task of an intermediary is to help you find a suitable loan.

The experienced intermediary will advise you on the financing offer, show you all the advantages and disadvantages and support you in creating the documentation for the loan application. Smaller financial institutions often have better conditions for final credit calculators than large, established credit institutions. An application for lending to the loan calculator at a normal house bank, however, would be almost unsuccessful.

The best-known credit institutions that provide their services via the network. The two intermediaries concentrated in particular on areas such as the credit end calculator. How do you recognize serious and dubious credit institutions? If an intermediary is a reputable partner, he has a serious need to help you obtain a credit for a credit terminal.

In the meantime, consumers have not only found the way to their house bank, but also the network to get a loan from a foreign bank that is tailored precisely to their needs. The guidelines for granting loans, which are significantly simplified compared to Germany, speak for a foreign financial institution. For this reason, poor creditworthiness or a positive lender entry on the subject of the final credit calculator plays only a minor role.

Basically, it is the private loan credit institutions that refinance loans that broker through the network. When it comes to final credit interest rate calculators, this target group, in particular, has a very difficult time granting a loan. Private individuals with financial problems can often not take out a loan. Due to indebtedness or bad creditworthiness, the financing chances are considerably reduced.

In such cases, the last possible option would be a private loan.

It is a loan granted by a private financial institution

money with rates

As a rule, such credit institutions do not carry out lender queries, which of course greatly simplifies the search for loans. With regard to the subject of credit closing rate calculators, this situation can almost be described as an ideal means. These are the following points.

Certain proof of income and securities from private loan financial institutions are of course also required for the granting of credit, although a credit check is mandatory before the loan is granted. However, if you have a generally good credit rating and entry into the power of disposal of the foundation is the only financing problem, private loan credit offers a realistic variant for the credit end calculator.

What is important when calculating the last credit installment? If the loan is sufficiently variable, you will experience problems repaying the loan much less often. A good credit finance business on credit end-calculator should provide all of this. With regard to the subject area of ​​the credit rate calculator, the funds required should generally be measured as precisely as possible from the start.

Therefore, you should keep the amount of the loan as low as possible.

It is better to compensate for the narrow requirements with follow-up or additional financing

money financing

If you need a loan, you should assess your financial situation as realistically as possible and keep an eye on your own income and expenses – even when it comes to loan installment calculator.

Anyone who gives the house bank the impression of a reliable business partner by following the recommendations for action mentioned should always work with the loan and then also with the credit rate calculator.

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APR, what it is and how it is calculated? Wed, 29 Jan 2020 17:47:56 +0000  

APR is the acronym for Annual Global Effective Rate and represents the final and actual expense linked to the request for a loan.

Also known as the Synthetic Cost Index ( ISC ) and represented as a percentage value, the APR includes in itself both the “pure” interest rate and all the ancillary expenses of a loan.

Use the APR to compare loans

Use the APR to compare loans

The main use that is made of the APR is that of comparison, that is of comparison between two loans to go in search of the most convenient. Generally speaking, we say that, among various loans, the one with the lowest APR will be the most convenient in terms of cost.

How is the APR calculated?

How is the APR calculated?

The calculation of the APR is slightly “complex” due to the fact that it also contains, as mentioned, all the accessory costs of the loan.

However, let’s take an example to better understand the concept (all the percentages and amounts indicated below are only examples, they may not show real values).

  • Loan amount: $ 10,000
  • TAN interest rate: 5%
  • Initial expenses: 100 $
  • Periodic expenses: $ 1 per month
  • Duration of funding: 60 months

The sum of the extra costs, calculated for the entire duration of the loan (60 months), is 160 USD which are added to the interest expense (equal to 1,322.74 USD).

The final cost of the loan will therefore be 1,384.74 USD, for an APR of approximately 5.78%.

As can be seen, the final expenditure is slightly higher than the nominal annual interest rate TAN only.

The APR according to the law

The APR according to the law

Italian law introduced the concept of APR for the first time in 2003, with Resolution no. 10688 of 4/03/2003, art. 9 paragraph 2, of the Inter-ministerial Committee for Credit and Savings, which pointed out to the Bank of Italy the need to identify an interest rate that could be representative of all the charges linked to a loan and which, therefore, would be been the expenses of a customer in applying for a personal loan.

Thus was born the APR, which is calculated by adding TAN + preliminary costs + practical management costs + compulsory insurance + state stamp.

The APR, on the other hand, never includes the taxes that must be paid on loans (such as registration taxes in the case of home loans) and insurance that are not mandatory.

Differences between APR and TAN

Differences between APR and TAN

The main difference between APR and TAN is clearly that of the type of costs that the percentage value represents. In the case of the APR, there is a more truthful indicator of the final cost of the loan and therefore this index is always preferable to the TAN in the loan installment calculation.

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Loan in fine: repay your principal when due! Sat, 11 Jan 2020 11:33:31 +0000 Loans are among the different types of credit. Unlike the repayable loan conventionally used for the financing of a real estate, the credit in fine gives the opportunity to the borrower to repay the totality of the capital due in a single payment, at maturity of the contract. The advantage? The monthly payments are only used to pay the interest and thus prove to be less important than in the framework of a traditional loan. Explanations.

How does a loan ultimately work?

How does a loan ultimately work?

By definition, a loan in fine works in reverse of a conventional loan. While the depreciable credit consists in repaying its capital while paying its interest to the lending establishment, the loan in fine offers a singular possibility: to repay the totality of the capital at the end of the contract, in a single installment.

If you choose this option, you will still have to pay monthly payments. But these will only include interest (as well as borrower insurance costs), not principal.

The advantage? During the entire term of the loan, you can place the money saved on a savings book or life insurance, and thus capitalize enough for the final repayment of the mortgage in fine. Or decide to resell the property to settle the loan.

Who is the priority for a loan in fine?

Who is the priority for a loan in fine?

The loan in fine is not a conventional mortgage. It is rather intended for the financing of a rental investment because of the tax advantages to which it gives right:

  • Loan interest can be deducted from collected property income;
  • If this rental income turns out to be lower than the interest on the loan in fine, it becomes possible to charge this land deficit against taxable income.

In fact, the interest of the mortgage ultimately is mainly tax: it allows you to make significant tax savings, especially in the event of a high tax rate … And to place the unspent money in monthly payments, so to earn savings income!

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Want to save on a passbook A? Prefer early loan repayment Thu, 09 Jan 2020 11:58:09 +0000 With the rate going down to 1% soon, this investment becomes more than ever precautionary savings. Because it is more profitable to increase the monthly payments of his mortgage rather than depositing his savings capacity on a passbook A. In particular for the owners who bought a few years ago, when the rates were high. Demonstration by example.

Savings on passbook A vs early redemption

Savings on passbook A vs early redemption

Let us assume that a household has a capital of $ 10,000. If they choose to place it on an A passbook, assuming that the rate remains at 1% they will generate $ 1,146 of interest in 10 years.
Now assume that this household has a mortgage of $ 150,000 over 12 years, which they took out in August 2012. They therefore have 10 years of repayment. Suppose they benefited from a rate of 3%. If this household injects its capital of $ 10,000 into its home loan, it will gain nearly 1 year of repayment, representing a total savings of $ 3,330.

This example shows that identical capital, used over an identical period, leads to a better return. A logic that Jérôme Robin , Founding President of Cream bank, summarizes: “The French who currently have a mortgage have for the most part subscribed at a rate much higher than those we currently know, and also higher than the remuneration of the passbook A. Under these conditions, making an early repayment is the best way to invest your money, the one that will bring the best profitability, especially for those who have taken out loans at 3% or more… ”.

Booklet A remuneration rate vs mortgage loan rate

Booklet A remuneration rate vs mortgage loan rate

The rate of return on the passbook A

The Lite lender is an investment whose purpose is to allow savers to keep up with inflation. Its rate of return is therefore logically focused on the evolution of the cost of living index. It can be revised twice a year, at the decision of the Ministry of the Economy and Finance, which chooses whether or not to follow the recommendations of the Director.

However, the consumer price index of June 2014 shows that the cost of living, increases by + 0.5% over 1 year. Prices remain generally stable overall compared to May, and even decrease in certain food, clothing and health sectors.

From this perspective, it is logical that the rate of return on the Lite lender decreases. And that is what will happen on August 1, 2014, when his remuneration will drop from the current 1.25% to 1%.

Home loan rates

Home loan rates are at an all time low. The Cream bank observatory shows that the lowest nominal rate obtained in the past 6 months is 2.49%. And even at this historically low level, it remains higher than the rate of return on the passbook A. This means that an early repayment will necessarily allow the saver to optimize his money.

The history of mortgage loan rates, as identified by the CSA / Astro Finance observatory, shows us that first-time buyers who borrowed in the last quarter of 2008 were only able to obtain rates above 5%.

In view of these figures, households with capital or even just a savings capacity will find it more beneficial to consolidate their mortgage than to save on a Lite lender, and here’s how.

How to optimize your mortgage with savings

How to optimize your mortgage with savings

Use the modularity of the deadlines

This tip is for households who do not want to inject available capital into their mortgage, or who simply do not have this capital. They have the possibility of using their savings capacity to increase the payment of their monthly payments. So, rather than depositing a certain sum every month on a passbook A which does not bring anything any more, they will reimburse their mortgage more quickly, and will thus pay less interest in the long term.

Sandrine Allonier , responsible for bank relations with the broker Cream bank, explains. “Most of the loans taken out in recent years are flexible, that is to say that after one to two years allow you to increase or decrease your monthly payment or to make early repayments in exceptional cases… It is a real flexibility for the borrower, with substantial savings! “.

Partial prepayment

Households with capital can inject it into their mortgage, as an exceptional partial repayment. The lender cannot refuse, if this partial injection is at least equal to 10% of the principal remaining due. However, partial or total reimbursement is accompanied by the payment of compensation. The transaction may therefore not be viable for the borrower.

To calculate the relevance of a partial repayment on a home loan, it is necessary to engage in the following 2 calculations:

  • Capital remaining due multiplied by 3%.
  • Addition of the next 6 monthly interest payments.

The smaller of the two amounts will be that of the early redemption indemnities. This calculation basis allows the borrower to assess the relevance of the transaction.

The repurchase of mortgage

Owners with capital, or with savings capacity, or both, may find it beneficial to redeem their mortgage. Today, loan rates are at their lowest, if they had borrowed a few years ago above 3.5%, they could perhaps get less than 2.5% today.

If they have greater savings capacity, they therefore have greater monthly repayment capacity. The monthly payments would thus be increased according to this capacity, but taking into account a more attractive rate. This formula undoubtedly leads to savings in interest over time.

It is also possible to inject existing capital into a mortgage loan repurchase. In view of the investment returns today, it is undoubtedly preferable for the saver to return to the fundamentals: the stone.

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