The tiered loan or lump-sum loan is to build a mortgage, involving several forms of credit. A type of editing little valued, which has yet good benefits, although it must remain aware of its disadvantages. The assistance of a broker is here, essential, to combine security and optimization of this financing.
How does a loan setup in 2 lines work?
The use of a multi-line or multi-line loan makes it possible to reduce the total cost of a home loan by playing on smaller amounts and variable terms, subject to different rates.
For example, in the context of a conventional loan, a loan of € 200,000 with an interest rate of 3.20%, granted for a period of 20 years, will result in a total cost of € 70,960.
As part of a two-line arrangement, the sum to be borrowed will be divided into two separate loans. The first from € 150,000 to 3.20% over 20 years, will generate a total cost of € 53,280; the second, from € 50,000 to 2.35% over 15 years, will cost € 10,300. In other words, an overall cost of € 63,580 and a reduction of € 7,380!
What is the point of using a piggyback loan?
With an interest rate that increases with the repayment term, the use of a trillion loan makes it possible to use this variable to reduce the total cost of financing.
Not to mention that the cost of borrower insurance will also fall . Theoretically, the rate associated with the shortest credit is normally lower than that associated with the longer credit. But, even at the same rate, the weight of the insurance is reduced, because part of the loan is insured over a shorter period.
To further reduce the cost of this multi-line loan, it is also possible to act on the guarantees required by the bank. A cleverly orchestrated negotiation could avoid guaranteeing the shortest loan, if the amount and the duration allow it.
Regardless of these financial benefits, the trunking loan allows for greater flexibility and management . In particular, in case of receipt of money that could close one of its lines in advance, without being sufficient to pay the entire credit.
Who can explain the technicality of the financing transaction: the broker
Until now little appreciated, tiered lending tends to become more democratic: today, half of the banks offer it. However, the technicality required for its assembly requires the assistance of a credit broker. The only one likely to “erase” the disadvantages of such a device .
A loan with 2 lines (or more) assumes the subscription to two separate credits , with two monthly payments, two rates, two guarantees (sometimes), two insurance … Therefore, the borrower must support a change of monthly payments at the end of the term. shortest credit. Not to mention that they are higher than a conventional loan at the beginning.
Naturally, it is possible to smooth, to have a single monthly payment throughout the repayment of the property, but this will cause a systematic increase in the total cost of credit.
Thanks to its technical know-how, the credit broker will allow you to make real savings on the loan, while avoiding repayments too heavy to bear taking into account your personal situation and your financial capabilities.