Those who are looking for a Mortgage loan, asking a mortgage with the financial institutions/Banks or Money Lenders is probably the best important financial decision. In this Article we present All the useful information about mortgages as well as tips Available on, how to find the best mortgage loans in the market. We will also provide a series of tools that will be very useful to have all the necessary information before signing a mortgage.
What are mortgage loans?
Most of the people who applied for Mortgage know what is mortgage loans and terms of Mortgage ..Etc, but there is still much ignorance about the particularities of their characteristics. When we sign these products, we agree with the bank the financing granted and the repayment term, in addition to a series of conditions that have to do with interest, linking or commissions, among others.
And is that, in exchange for leaving us money and allow us to return it in installments, banks charge a specific interest and require us to provide a double guarantee: the mortgage, which affects the home itself, and the personal, which affects our personal assets present and future. If the client cannot face the payments, he will respond with the financed housing and, if his value does not cover the outstanding debt, also with all his assets until paying everything pending.
Ways to pay a mortgage
If we want to buy a home and request financing from the bank, we will have two ways to make the mortgage payment, through mortgage loans.
When it comes to a loan or a mortgage loan with a highamount, as is the case of the products contracted to finance the purchase of a home, there are two factors that allow to see what the difference between a loan and a credit is: the price of borrowed money (the interest rate) and the repayment term.
Mortgage loans
Virtually all mortgages that are signed in our country, whether to acquire a first or a second home, are written mortgage loans. This means that, when signing the contract, it establishes what amount the bank will lend, and in which term the customer will have to make the reimbursement, as well as what the rest of the product conditions will be (interest, commissions, linking, etc.).
Therefore, mortgage loans are the guaranteed obligation that we will return the principal plus interest as agreed, being the real property financed the main guarantee of payment.
Depending on the interest they have, mortgage loans can be divided into three types: mortgages at fixed interest, variable or mixed.
It’s better to check loan against property before taking any mortgage loan, In the former, the quotas are always the same, while in the latter they will vary depending on the values reached by the index to which that product is referenced . In the mixed, there is a fixed period (usually 10 years) and then a variable one. Next, we can consult the characteristics of the most interesting fixed-rate mortgages in the market:
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