Loan Real Estate

Understand mortgage credit

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For the financing of a real estate project, small, medium, or large-scale, resort to a mortgage loan would be a good alternative to condition by hand, to be in possession of one or more immovable properties.

What is a mortgage credit ?

Whether you are a professional or an individual, it is possible to perform a mortgage loan application from the moment you are the owner of a property. The latter will provide a mortgage for the borrowed capital that the creditor bank will agree to give you. If ever you will not be able to ensure the repayment of the payments, the lender has the right to enter the property and will put it on sale.

Like a traditional credit, the underwriting of a mortgage loan also requires the establishment of the amount of the loan and the loan period. The terms of this type of credit does not differ not more than a loan usual with the possibility for example to repay early or to modulate payments according to the state of your budget. The rate of mortgage credit can also be either fixed or variable.

What is the duration of the repayment of a mortgage loan?

In comparison to a traditional credit, a mortgage is a long-term loan with the period of repayment can be spread over 20 to 25 years or more. The term of the loan is established and adapted according in particular to the repayment capacity of the borrower. The debt ratio is calculated based on the income of the applicant of the loan relative to its monthly expenses, as well as what it needs to live.

The total cost of your credit as well as monthly payments to pay will mostly depend on the duration of the loan. More it is, the longer you pay interest. It is then necessary to opt for a term that would be the most appropriate to your current financial situation. It is important to know that the last monthly payment must not be fixed beyond the 90 years of the debtor.

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