These days, buying a home is probably the most important decision we make in our lives, and that is affecting our personal finances at least a good number of years. This is an important financial transaction in which most of the time you have to resort to external financing.
The most used is the housing mortgage when applying for a loan, so-called ‘mortgage’. That is, mortgages, plus the personal guarantee is offered as a payment guarantee (collateral), which involves the allocation of housing purchased as security for recovery. Using this formula, the bank would become the owner of the house if the debt were not met.
The facts that housing endorses the repayment of debt, making mortgage interest are cheaper than other financing models that offer less security. Also, the high level of operation makes mortgages are handled in a very long time, providing more facilities for payment. The maximum loan amount is usually never exceeding 80% of the appraised value of the property.
Currently, the supply of mortgages is quite broad, and financial institutions often use different trade names to attract the attention of their customers. Still, all of them can be summarized in four types of mortgages: fixed rate, variable, mixed interest and fee.
As the lender has the security of the building is so that you can grant Mortgage Loans to low interest and long term. The property is owned by the Bank by the fact that the mortgage has been granted, at all times is owned by whoever bought it can sell or rent it or even re-mortgaging, within legal limits. Banks often ask someone who endorses the operation, especially if the person requesting the loan has a low income or creditworthiness.
If you need money for the wedding of your children, college, buy a car, the holiday that you so deserve this and more are reasons to refinance your existing mortgage.