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Mortgage Advice


The mortgage loan is a financial product that allows you to receive certain amount of money in exchange for the commitment to repay that amount, together with interest, through periodic payments. Here are the factors you should consider when formalizing your mortgage.

 

Maximum Amount


The maximum amount of a mortgage depends on several factors:

The value of the property. The law states that mortgage market institutions can lend up to 80% (in rare cases 90%) of the appraised value of the home purchased or taken as collateral. The assessment should be conducted by an independent appraisal company and recorded.

Income. The monthly loan should not exceed 35% or 40% of net income of the applicant justified, although this will depend on the analysis of the financial institution, other personal guarantees, other goods, etc..

The amount of money borrowed by the entity is the capital. Borrowed capital plus interest is to be paid on time.

The fee


Is the amount that is paid regularly and on time has to return the initial capital plus interest. Each installment has a share capital, called capital repayment and part interest.

Typically, fees are monthly, but can also be bimonthly, quarterly, semiannual or annual basis.

When you can not pay a fee (usually at the beginning) is called a total lack. If you can not pay the portion of depreciation, Eg   pay only the interest is called amortization or partial lack


Amortization

 

Is the payment of outstanding principal that is done in each installment.

For loans with French repayment system, which is used in the vast majority of mortgages, was initially pay more interest and less capital and at the end of the loan is the opposite.

Repayment or partial refund is money that comes out of the ordinary shares to lower debt. When you cancel the entire debt at once is an early cancellation or total repayment.

The Term

 

It is the contracted time period to return the principal and interest. In the market there are organizations that offer up to 40 years, which allows smaller monthly payments are.

 

The interest rate


Is the price of borrowed capital. The interest rate can be fixed if it does not change during the life of the loan or variable if it varies at some point. This element Unlike fixed rate mortgages for variable rate mortgages.

There is also a mixed type, where the interest rate remains fixed for an initial period of more than 1 year and then varies.

Mortgage loans variable interest rate is reviewed according to known values as benchmarks.

Requirements to apply for Mortgage Loans

 

Applicant

• Mortgage Loan Application Form duly completed and signed.
• Copy of Electoral Identity Card and the applicant (s) and cosigner.
• Proof of family income (Charter of Labor / Affidavit) and co-debtor.
• Affidavit of the insurance company and medical tests if warranted.
• If foreign residents file a tax return.



Seller


• When the seller is a company, must present a certified copy of the Bylaws and the Act of Assembly which authorizes the sale of the property, RNC and Registry.
• Address, phone and copy of the Electoral Identity Card and the seller or sellers.



Property

• Copy of Certificate of Title on both sides and plat property.
• Pricing.
• Purchase Option Agreement, or failing that, a letter indicating sale price, location and valuation.