For those who need money and have a real estate mortgage is one way out, but be careful this decision must be well thought out and planned.
Like most banking processes, real estate mortgages also have their peculiarities, which can make it easy and fast for a big headache.
Real estate mortgages are also referred to as “home equity loan” and “real estate refinancing”.
This modality consists of placing a settled property as collateral to be withdrawn an amount of money.
There are many reasons why people put their homes in the hands of bank branches in exchange for money, but among them are:
- The urgency to pay back accumulated debts;
- The desire to open your own business;
- Acquire a new property, as other banking modalities did not fit your client’s financial situation;
The process to get mortgage
When the agreement with the financial institution is made, in which both parties agree, the property is still in the name of the owner, it would make it difficult to repossess the property if there was no payment of installments.
If it is really necessary for the property to be taken by the institution, everything will be properly done by the court, which can take years.
If you, as a property owner, want to sell your home, do not worry that this can be done. Please note that the mortgage amount will need to be repaid in full and at one time.
Being a property that is being mortgaged, the interest rates of installments are lower than other banking modalities.
The number of limit installments will vary from one agency to another, so be careful and look good before signing anything. There are companies that accept up to 30 years of installments, which makes it easy to get paid.
Despite all the benefits, you are still mortgaging a property and should take into consideration that it is being put at risk, so that your loss is possible.
View and organize your financial life to ensure that your property is not taken over, as by law the delay of a single installment already guarantees the taking of the mortgaged property.
Before you make any decision, think hard, as a bank commitment on this side usually lasts for years, like a mortgage.
3 Tips Where to Invest Your Mortgage
Despite the risk of mortgaging the property, there are some situations where this attitude is plausible. Below are the best situations to get a mortgage:
1- Business Expansion
In this case, if the intention is to develop a project or expand its own business, it is interesting to consider the possibility of mortgage. Thus, you can use resources to strengthen your company infrastructure, such as marketing, or even hire more employees.
2- House renovation
The money can even be invested in home remodeling. In this way, the payer disburses a loan amount that has longer maturities (up to 30 years) and also has more affordable rates than those on credit card, overdraft or other types of loans, as the staff.
3- Paying off more expensive debts
Refinancing money can be used to “swap” debts. That is, pay off one that has a higher interest rate, such as a credit card and overdraft, and concentrate payments on the loan only.
Remember that even with the property given as collateral, the bank will still make a credit analysis. In other words, it will assess whether, in fact the interested party can afford the parcels. The bank will also check if the person has a dirty name.
If there are no obstacles, the loan is released and the money will be available. The loan amount will depend on the assessment made by the bank.
It is important to note that the person interested in the mortgage must be completely sure of the commitment they are making. This is because, if the debt is not paid, the assets involved in the mortgage can be taken by the financial institution and put up for auction.
This means that if you fail to pay the installments, the bank can take your property. So be very careful before making a mortgage!
Secured x Mortgage Loan
In a Secured Loan, also called a “mortgage”, the borrower transfers ownership of his property to the lender until the debt of the loan is repaid. This operation has brought better rates, terms and conditions for lenders and borrowers.
In the case of mortgage, there is no transfer of property to the lender.
To leverage your business, you can mortgage a property.
Do not forget to compare rates!
Of course you should always look for the lowest interest rates before making any loan, even if it’s not a mortgage!
To do this, simply log into our website and filling in the loan information you want. Then you can choose the place that offers you the loan with the lowest interest rates!
That’s it for today! We hope you enjoyed the content!
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