What is the mortgage loan and how do you calculate?

A mortgage loan is a medium-to long-term loan granted by a set of credit or a bank, which requires, as a guarantee of the loan, mortgages on the property object acquisition or improvement. For this reason, this type of loan is called mortgage.

The mortgage must be a first degree, that is not preceded by registration or registration of title or liens (including tax). In case of a supplementary loan, the mortgage will be the second degree.

The loan may be assisted by other guarantees agreed between the bank and the customer, such as the guarantee of a third party, the sale of the rent of the mortgaged property.

The mortgage is generally carried at a value higher than the loan itself (from 150% to 300%), but this increased coverage does not generate higher costs for the customer, except for the amount of legal costs, which are commensurate with the value of 'mortgage.

Essentially the mortgage is for the bank protection, but also allows the borrower to get the amount, the interest rate and the repayment duration that without this not have been granted.

In contrast, in fact, the unsecured loan will be less than the rate achieved and the duration and amount of the loan greater.

To calculate the mortgage loan you need to know at least five elements: the amount for which you are applying for the loan, its duration, the type of rate that will be required, the amortization schedule followed by the bank in repayment of installments and the shape installment chosen (monthly, quarterly or half-yearly).

If the type of rate is fixed, the mortgage payment will be the same throughout its life.

Unlike the speech for the type of a variable rate, which will vary according to the market value of its indexing parameters (Euribor or ECB rate), and that in turn will change the mortgage payment.

 

01/12/2012

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Translated via software

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Source:

Italian version of CercaGeometra.it