Credit redemption, everything has to be redone
A credit redemption is a new full-fledged loan agreement, with new capital associated with a different interest rate. Who says new loan, says new borrower insurance, and therefore new health questionnaire.
Once the new credit offer is signed, the previous loan (s) are settled early and the borrower begins repaying the new loan. The subscription of this new loan is accompanied by the usual requirements that one finds for any credit, including the guarantee provided by the insurance of mortgage loan.
Before the insurer can agree or disagree, the borrower must respond to the inevitable health questionnaire. This health questionnaire is required to calculate the amount of your contributions, and must be completed as honestly as possible, any misinformation or omission that may have serious consequences. Avoid lying by filling it. Know that in case of doubt the insurer, it is anyway able to require a medical visit before agreeing to insure your mortgage.
Even if the lender is the one of the previous loan, the subscription of a new loan insurance is essential, the previous one being attached to the loan.
Repurchase of credit, borrower insurance retains its importance
Whether it is a conventional credit or a repurchase of credit, borrower insurance accounts for about 30% of the overall cost of credit. The greatest attention must therefore be paid to this post.
Depending on the number of years between the first loan and the buyback, the profile of the borrower may have changed in a positive or negative way, which will directly affect the amount of your new monthly payments. For example, a major aspect is stopping smoking, smoking weighing heavily on the cost of insurance.
The subscription of a new contract accompanied by the taking into account of the information provided with the medical questionnaire, it is thus an updated profile which is presented to the insurer. It is this medical questionnaire that will determine the characteristics of your mortgage insurance.
It is therefore important not to neglect your new borrower insurance. Do not rely on your previous insurance when you search. Your profile has evolved, so your needs have changed. And the medical questionnaire is not the only element to take into account, your professional situation, financial or family, among others, also to be considered.
Feel free to compare different loan insurance offers. This step is facilitated by the tool put at your disposal by Lochinvar. After the simulation that only takes 4 minutes, you have the best offers on the market tailored to your profile. They remain stored on your personal space, which makes it possible to analyze each estimate carefully. Once the selection is made, the online subscription gives the opportunity to realize additional savings.
During your credit redemption, if the banker strongly insists that your choice be on the group insurance of the bank, the borrower will then have the 12 months provided by the Hamon law to change borrower