Optimize your mortgage after 50 years
Stone is a safe investment for French households. For people wishing to use the mortgage loan after 50 years, it is necessary to take the time to seek insurance borrower to protect against the risk of death and disability. Further illustration at http://www.cocinaconcarmen.com/business-loans-for-bad-credit-getting-a-business-loan-with-bad-credit/
Indeed, the more we advance in age, the more the cost of this insurance is important. And after the age of 60, its rate may even be higher than that of the mortgage loan. Here are some recommendations to optimize your mortgage loan after 50 years.
Privilege the mortgage loan on the cash purchase
With mortgage loan rates still very low, it is in the interest of seniors to use credit instead of blocking their savings to buy a home. Indeed, to finance a real estate property over a repayment period of 10 or 15 years, banks can offer rates in the range of 1 to 1.5%. And savings can yield from 2 to 2.5%, it is better to go into debt.
Also, for banks and lending institutions, people over the age of 50 are a category of borrowers with an interesting profile. This is because they generally have no more children and generally have good savings because their loans have been closed.
In addition, these customers usually have several bank accounts and savings or insurance solutions. Although this limits the marketing opportunities of financial products for the lending bank, this is not a brake and is however a reassuring point.
Choose your mortgage loan insurance after 50 years
For senior borrowers, the main obstacle to access to the property is the amount of insurance. From 50 to 59, for people in good health, the rate of loan insurance can average 0.5%. And, at age 60, it is usually greater than 1%. And it can also happen that it exceeds the loan rate.
In the event of an age-related health problem, such as diabetes or cholesterol, the rate of the borrower insurance will be slightly increased. But be careful anyway because in the event of an aggravated health problem such as cancer, this can lead to a refusal of insurance from the bank.
It is thus interesting and strongly recommended to resort to the delegation of insurance because the offers of mortgage loan insurance of specialized insurance companies are generally more attractive than the group insurance contract of the bank, with guarantees on measured and at the adjusted rate.
Finally, in the event of an aggravated health risk and refusal of insurance, the agreement (insuring and borrowing with an aggravated health risk) allows up to two new examinations of the mortgage loan insurance application file in order to find a solution to ensure the person with an aggravated health problem. In this case, however, the procedure is longer.