Housing finance: personal loan or mortgage

Housing finance: personal loan or mortgage?
makassar-properti.blogspot.com.  Buying implies for most debt for many years, if not a lifetime. The formula for financing a home is the most common home loan , though, why not hire a personal loan? The conditions for granting no different from those of the mortgage, and in case of nonpayment of fees, the bank has more difficulty to collect the debt (mortgage, the debtor's home is the collateral, and passes to the bank speed). However, there seems to be the ideal home loan because its repayment period is lower and much higher interest.

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Borrow from the bank is a serious decision, especially if the amount requested is very high, because you have to return it and also with interest. Therefore it is important to know the different financial products that are financial institutions, and pick the one that best suits the specific needs of each client . Banks offer many different possibilities, but two are the most common loan products:

On credit, is a form of financing by a bank available to a person or company a certain amount of cash. Interest is paid only by the amount that actually was used.

The loan, you pay interest for the full amount, which is fully available to the client of the bank from the outset. Who requested this financial product needs, as a rule, all the money requested for the purchase or expenditure to be undertaken. If the debt is not returned on time and with interest, the owner responds with personal property. A specific form of the loan is the mortgage, which is commonly used for purchasing a home. In this case, housing that is acquired is the good response of the loan, ie good "mortgage." The bank knows it can keep the house, after conducting the appropriate legal proceedings and thus settle the debt.
Do not be fooled: he asks for a personal loan with no mortgage also meets your assets in case of default . If a customer defaults, the bank may request the seizure of their possessions to cover the debt. But this may be more laborious and difficult for the bank, because he is supposed to find the debtor's assets. And there are many people who change the ownership of what they have to get rid of attachments.

In a mortgage loan , if the bank were to keep the mortgaged property and sell it to pay the debt, the customer would still have to answer for the amount of money that would not be covered, if necessary. In recent years, with the steady increase in housing prices experienced this situation has been unusual. If it was time to seize the house to retrieve the loan, the bank had a house that had gained a lot of money and could be auctioned to recover the money. In fact, estate agents used to reassure those who ventured to buy a house and not had all along, assuring them home soon so the price would rise, if passed in a hurry, they could sell it to pay the debt with the bank and still earn money.

In fact, for quite a few years, this has happened but now the situation has changed dramatically. As housing and do not rise in price, if you can not pay the monthly mortgage, even selling the house does not always get enough to cancel the debt. Some owners are forced to sell your home worth less than the buying, to remove at least part of the mortgage but still have a debt to the bank. This is one reason why banks have started to limit the amount of mortgages granted, which reached 80% of the value of the house. Offset ", then ask for a personal loan?

The key is in the interests

The answer is no: a personal loan is the ideal alternative to the mortgage. The mortgage loans are referenced in most cases the Euribor , and the payment of interest will depend on the value reaches this indicator. Euribor is an acronym of European Interbank Offered Rate, European interbank interest rate at which banks lend money to each other. The European Banking Federation is responsible for calculating its value by the average prices of 64 major European banks. The Euribor is calculated on a day, week, month or year. Which is used to calculate the interest of many of the loans in Spain which is referenced to a year.

From level that reaches the Euribor , adds a certain amount, which will set the interest rate paid on the loan. In mortgage lending before the crisis it was normal that the rate of interest charged is lower than the Euribor plus one point. The best deals appear in the online banks, with interest rates up 0.40 points over Euribor. ING Direct currently offers an interest rate corresponding to Euribor plus 0.55 points, while the online bank BBVA offers Euribor plus 0.45 points.

The personal loans have, in most cases, a rate significantly higher. Even in the case of loans for small amounts, is not the case requested a loan to purchase a home, "in which the interest may be even zero, the costs of opening and cancellation may incur a cost in practice relatively high. Generally, interest rates on loans are around 8% annually, far from the Euribor, despite the escalation that suffered during the summer this index and that seems to begin to bottom out. For example, the Bancaja offers an APR of 8.61% and Caja Laboral has an unsecured personal loan commitment fees at an interest rate slightly above 7%, although restricted to its customers or those domiciled payroll.

Article published in Consumer Eroski = http://www.consumer.es/web/es/economia_domestica/finanzas/2008/10/31/181109.php
Source : http://www.rankia.com/articulos/210344-financiar-vivienda-prestamo-personal-hipoteca

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