Mortgage Loan greater than 80% of appraised value

Surely we have always heard and even read the conditions stand banks and financial institutions that no one makes a mortgage loan with a value greater than 80 or even up to 85 percent of the value of the property to be mortgaged. To this, the bank called the value of auction or appraisal shot that is the amount that could be achieved as the case of having to liquidate a debt for unpaid mortgage loan through the top of it. It takes into account that it is unlikely that a property is reached at an auction to pay 100 percent of value, and if we take into account also the fees that they charge auctioneers, we arrive at the percentage specified. With the amount the bank manages the property topped the overdue debt is charged by the mortgage loan mentioned. So here is clear.


Can you get a mortgage loan greater than 80% of property value?

This is where the figure of the guarantor, the title of this article mentioned the mortgage loan amounts greater than 80% of the valuation or auction of the property placed as collateral in mortgage credit and this is possible if done an additional endorsement. Where the need arises for a mortgage loan greater than this percentage? It can be for several reasons, first we believe it is the low power savings that families have today because of the economic crises that have beaten all countries equally, whether the so-called first world and the others where the same impact one way or another. Before families could save up over 20% to apply for a mortgage loan for the remaining percentage, but today in many cases not possible.

Also, the value of properties has increased considerably for the same reason which makes the need for more money has pushed up rates of a mortgage loan up to one hundred or more. If we add all the taxes you pay to buy a building there are all kind and also the notary fees, regularization of drawings in some cases, bank charges and ended up applying for a mortgage loan with a significantly higher percentage which we had initially thought. But for this there are alternative and additional solutions that we can manage to make the mortgage loan exceeds the actual value of the property sale.

The mortgage loan with no collateral or additional

It is clear that the banks never lose because your business is making money and have a wide network of consultants who work for it with lawyers and law very studied where details do not leak could jeopardize its operations. But equally, and beyond that banks do not want to keep property of clients who can not pay your mortgage loan if they can do about it. There are many additional expenses to be incurred up to a bank auction for what is intended, by all means, avoid this turning point in a mortgage loan .

The options offered are many and one is to present an additional warranty or a person to be our guarantor. This is the most common but if we do not want this, another solution is what is known as credit insurance is included in the monthly fee for the amortization of the mortgage loan and saves you having to ask other security. Thus we find that in addition what is the capital borrowed, the interest payable and administrative expenses are always part of the fee, now adds the credit insurance and according to the policy that is signed, the bank can lend up to 120% of property value as collateral.

Mortgage loan without collateral, benefits and risks

The main advantage is that we need not ask anyone to be our guarantor and there are many people who have no family or friends to leave as collateral for a mortgage loan as it is a very complicated issue. On the other hand, there is a risk that this will increase our budget and the share will be higher and we know how to deal with the redemption without this get us out of the relationship between monthly income and expenses and can not pay the mortgage.


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