Monthly Archives: January 2019

Private Capital Loans

Any entity that grants financing and that is not regulated by the Central Bank of Spain can be considered as a private capital credit lender.

One of the characteristics of companies that grant private capital loans is that they are not usually a physical entity, but rather, manage all their operations through online. Which, in fact, helps speed up the approval process.

The most outstanding products in the world of companies that finance private capital loans are fast loans and mini-loans. Since they offer us small amounts of money in a matter of minutes, ideal to solve economic problems that we did not have.

Another of the products that are most requested from these entities are the lines of credit to which many self-employed and SMEs turn to obtain a liquidity when they are delayed in payments of clients or invoices.

Get private capital loans without payroll

Get private capital loans without payroll

Most companies that provide private capital loans do not require a payroll to access any of the types of financing they offer.

For these companies it is sufficient to demonstrate that we receive sufficient income with which we can then pay off our debt on time. It does not matter if the source of its origin is a pension for retirement, unemployment, a subsidy, among others.

If we have alternative income to a payroll, for these companies to approve our request for private capital loans , it will be necessary to comply with the following 3 requirements: this source of income must be regular, justifiable and sufficient.

The source of income with which we are going to subsidize our private capital loans must be of an amount that allows us to repay the loan .

Most common mistakes when requesting private capital credits

When we ask for a financing from a private equity company, we have to take into account the type of commitment we are taking with it. Not only do we have to pay back the money that was lent to us, but we also have to pay the interest and do it within the period of time established in the contract.

So we should try not to make the following mistakes when requesting private capital loans:

  • Stay with the first offer we find: we limit ourselves to the first option we find and we do not dedicate ourselves to looking for a third option that most likely offers us better benefits.
  • Hire it knowing that we will not be able to return it: there are many cases where despair wins us and we assume a debt that we can not liquidate.
  • Fix only the advertised interest: If we go to a private equity company, we will find it easier to find financing that does not include commissions.

Determinants for the cost of private capital loans

Apart from interest, the cost of private capital loans is determined by several factors that will directly or indirectly affect the cost of financing that we want to hire. Some of them are the following:

  • The amount and the term; since the more capital and the term of the private capital credit that we request, the more interest I will have to pay.
  • The TIN, which is the Nominal Interest Rate of the loan without guarantee.
  • The APR (Annual Equivalent Rate), the most characteristic indicator to measure and compare the annual cost of loans without a guarantee of high amounts.
  • The commissions.

Loans from individuals 2019 – As an alternative to the house bank?

Scoring at Private credit is crucial

Scoring at Private credit is crucial

It does not have to be the forgotten bill that makes you drop in prestige at the Private credit. The score is calculated using various statistical values ​​that are not necessarily related to your ability to pay. If your score drops too far, for example as a result of frequent job moves or multiple small loans within a short period of time, you will not get a cent from many banks. Unfortunately, the Private credit score is often rated very high by banks, although it by no means reflects the actual financial situation of a client.

In the event that your Private credit score is too low, the credit marketplaces can help you to make many inquiries from home with just a few clicks. Here you also have the option of obtaining loans from private investors, even though the banks reject your requests.

Apply for credit via credit marketplaces

Apply for credit via credit marketplaces

Basically, the application is similar, as it does at a bank. They give out data on your personal circumstances, income, housing situation and existing loans and then receive offers. The difference is that you make a lot of requests with just one input of your data. The best credit market places from Germany for personal loans can be found here .

Most of the time you will receive the answers from interested parties within a few hours, provided that you submit the application within business hours. If you choose one of the offers, you usually only have to print out the contract, sign it and send it back to the creditor. What documents (bank statements or payslips) the lender needs, he tells you in his letter.

Benefits of a loan from private investors

The biggest advantage is that a private lender has different foundations than a bank. Many banks reject you as a customer in principle, if your Private credit score has dropped below 99. The private investor, on the other hand, is aware that you would not apply for a loan if you had no shortage of money and would be much more tolerant.

Another big advantage with private investors is that the new loan is not necessarily registered in your Private credit. This will be decided case by case, but this decision may be in your favor. You may have “cleaned up” your Private credit with your loan application.

The disadvantages

Not only does it benefit banks to shirk their loan application. This coin also has two pages.

For example, loans from private individuals are usually several percentage points more expensive than would be the case with banks. In this way, they protect themselves against the risk they bear by issuing loans to risk customers.

Another difficult issue is the protection against death, unemployment or disability. While the installment insurance policies are usually offered by default by the bank, the private investor will have no insurance in the hindquarters. Of course you have the option to look for a separate insurance.

One disadvantage that may not affect you at all is the maximum loan amount. If you and your spouse have an average income, you can get six-figure amounts from a bank. Especially when buying a home such sums are not uncommon.

For private investors, however, the sum is significantly lower. Mostly, a maximum of 25,000 EUR can be applied for here. Why this is, you should quickly understand, if you ask yourself the following question: Would you lend a person a six-figure amount, if you have never met them personally?

Apply for student loan 2019: Different variants in detail

 student loan

Students who leave their parents’ home to study and live in a university town often face significant costs. The rent even for a room in a shared flat, the livelihood, all the resources required for study and often travel costs ensure that the money is always scarce. Not all students have a secondary income, and at the latest in the last few semesters, they want to focus on the degree. For students who are not eligible for Federal financial aid and whose family budget is limited, a student loan is an option for funding.

  • A student loan can compensate for a missing Federal financial aid claim or for too little Federal financial aid
  • The financing of the study can be applied for via Intrasavings bank
  • The repayment modalities are manageable
  • A student loan calculator facilitates the calculation

1. Student Loan – what is it here?

Before it goes to the financing options, first a definition. As a student loan, sometimes student loan, only a loan is called, which serves to finance the study. Of course, students also have the opportunity to raise consumer credit to facilitate purchases. In this case, however, there is an installment loan or possibly the use of a credit line . The funding of the study should be conceptually delimited from it. Student loans are often the only way for many students to accept and complete the study of their choice, especially when their parents’ resources are insufficient or when several children’s education needs to be funded, given the rise in city center rents. Of course, there are a number of options for obtaining a degree or education through funding:

  • Federal financial aid
  • University loans and study scholarships
  • Student loan, for example through Intrasavings bank
  • installment loans
  • Savings and Payments Plans

2. Student Loan: What Students Should Know

If a student loan is required, it is always worth the exact consideration of the conditions. No matter what funding is chosen, the interest should not be excessive. In addition, the loan must be able to cover the livelihood to fulfill its purpose. At the same time, the repayment must be considered before the loan application is made. What are the prospects for employment after graduation? And: can the program actually be completed quickly? For the correct assessment of one’s own financial perspectives and the possible burdens a student loan calculator can be called in.

2.1 What does a student loan calculator do?

Student loan calculators are easy to find online. The easy-to-use computers allow the calculation of the required loan for the desired monthly sum over a desired duration, namely the study duration. Also, the repayment period and the required monthly installments can be calculated on some of the available calculators. If you use the calculator, you can also use a credit comparison to determine which offer best suits your needs. This allows you to filter out reputable providers and save a lot of money on student loans. In summary, the following factors should be considered

  • loan amount
  • Monthly payout
  • study period
  • Repayment period and installment charges

Applying for an installment loan can be quite easy - ING-DiBa also offers its credit online

3. What alternatives to the student loan are there?

3.1 Savings plans for studying: When the parents make provision

Lucky for all those whose parents have provided in advance. With an early savings plan, preferably directly after the birth of the offspring, can save up to the end of the school with a very small monthly saving rates a nice sum for the financing of education. Anyone who combines the savings plan with a payout plan can ensure that a certain amount is available each month. This type of asset formation makes a student loan superfluous, but wants to be planned on time.

3.2 Scholarships: Promotion without repayment

Particularly gifted students can hope for scholarships. However, these are not student loans in the true sense, since they do not have to be repaid. Scholarships are partly borne by industry to encourage future experts at an early stage through the promotion of young talent. Special gifted education organizations also award scholarships, as does the Bundeswehr. Some scholarships are subject to appropriate conditions, such as the obligation to later work at the funding institution at least for some years.

4. Federal financial aid: Federal funding for training

The so-called Federal financial aid is a monthly paid subsidy, which should create more educational justice and educational opportunities in accordance with the Federal Training Promotion Act. It is paid when the student and his or her parents’ financial resources are insufficient, and consists of a partial loan and a non-repayable grant. The advantage of the Federal financial aid is that it is an interest-free loan, the repayment of which must start no later than five years after the payment of the last subsidy rate. Thus, the conditions are of course favorable, but under unfavorable circumstances, the student receives no funding. This may be the case if parents earn too much but do not support their studies. In some cases, a parent who has long since broken off contact can be credited and thus block access to funding. If the maximum funding period is exceeded – that is, if the study takes too long – the previously existing funding can be discontinued. And last but not least, the funding that is available on a monthly basis is not always sufficient for a living. In these cases, a classic student loan is an alternative.

Federal financial aid: the conditions

  • The student is a German citizen and less than 30 years old
  • Monthly payout
  • Eligible college
  • Studying outside the place of residence of the parents
  • training
  • Parental means are not enough
  • Interest-free repayment from at the latest five years of the last disbursement

5. The classic student loan

If it must be a student loan, there are special financing solutions such as the Intrasavings bank Student Loan. The German Intrasavings bank, founded in the post-war years, is now the largest development bank worldwide. A student loan from the development bank is paid in monthly installments, which can reach a maximum of 650 euros. Thus, the credit accompanies the student during the training and allows him to cover the cost of living. Intrasavings bank charges the lending rates with the monthly payments. With increasing amounts of credit, the interest rates rise, so each year higher amounts are deducted from the monthly distributed sum. If a student receives a monthly sum of 300 euros, effective interest rates of 4.16% pa after the first year only pay 288.78 euros. After three years of study, more than 35 euros are already deducted monthly. However, in individual cases, the borrower can also make a deferral of interest with Intrasavings bank and later deduct the interest. Here, however, the development bank insists on performance records.

A credit comparison can often find lower interest rates

A credit comparison can often find lower interest rates

5.1 Flexible student loan solutions

The advantages of Intrasavings bank include the very flexible range of financing solutions. Not only does the promotional bank offer an educational loan for financial support during training, there is also a career development and further qualification Federal financial aid, and there is also a Federal financial aid bank loan for students who have exceeded the maximum funding period.

5.2 Intrasavings bank: repayment of the student loan

At Intrasavings bank, graduates have a so-called 18-month waiting period – during this period, the monthly interest is collected, but no repayment installments. The purpose of the waiting period: after completing the training, the student should be given the opportunity to look for a job before starting to pay off the loan. Those who find a permanent position immediately after graduation can, of course, immediately start repaying the loan. The borrower certainly has an influence on the monthly installments. The only restriction at Intrasavings bank: within 25 years, the loan must be removed. In addition, the promotional bank offers the opportunity to adjust rates twice a year on certain dates, ie to reduce or increase them, and special repayments can be made at any time free of charge.

Intrasavings bank student loan: the conditions

  • Students are German or EU citizens or family members of EU citizens aged 18 to 44 years
  • Monthly payout
  • Regardless of income
  • For degree programs at state-recognized universities
  • Interest rate approx. 3.55% p. a. is deducted monthly
  • Repayment begins after a waiting period of 18 months

6. Further financing solutions for students

6.1 Installment loans for students

Installment loans are also eligible for financing. This is the case when students need to make a purchase they depend on, such as buying a used car. Typically, financial services providers insist on collateral, such as proof of a fixed monthly income. This is not the case with students, so in most cases it is necessary to provide guarantors. For students, these can be parents or close relatives. Even with installment loans for students, the credit comparison is worthwhile, because the conditions can be very different. Some banks offer special financing solutions for students on good terms because they want to attract the borrower as a customer.

Installment credit: the conditions

  • majority
  • proof of study
  • Guarantors, such as the parents
  • One-off payment, earmarked or free, approx. 0.89% p. a.

6.2 Disbursement credit for students

The ability to overdraw the checking account, many banks also accommodate students. If this is used, however, one must expect high interest rates – higher in any case than they would have accrued in the case of an installment loan. Therefore, overdraft should only be used if an emergency actually occurs. Otherwise, the interest burden may burden the narrow student budget excessively.

7. Which loan for which situation?

The comparison of financing options illustrates the different conditions and costs. Above all, the interest rate differs greatly – while the Federal financial aid is interest-free, the interest rates of a Intrasavings bank student loan are higher than with a conventional installment loan, but are collected in a way that is compatible for many students. An interest extension is also conceivable. Installment loans can already be taken out with comparatively favorable interest rates, but here too the terms and repayment terms should be examined. At the Federal financial aid and at Intrasavings bank, the student benefits from a waiting period and a very long period of deduction, which is not given for installment loans.

Here is the question of what the amount is needed, and for how long. Covering the cost of living while studying for three to six years of average study duration can certainly best be achieved with Federal financial aid or a Intrasavings bank loan. If only a one-off purchase or a semester abroad to be funded, an installment loan may be the best solution.

Online there are numerous promotions and discounts, so you get much better terms

Online there are numerous promotions and discounts, so you get much better terms

8. So it works with the student loan

Anyone who has compared the offers and now wants to take out a loan must undergo different application procedures. When it comes to a student installment loan, follow these steps:

  1. Use credit comparison and choose the cheapest provider.
  2. Have the necessary documents, such as proof of studies and information on securities and guarantors.
  3. Complete the application and submit, in many cases, this is possible online.
  4. Wait for the bank to examine it and submit a loan proposal.
  5. Go through the legitimization process through PostIdent or VideoIdent.
  6. Accept the payment of the loan amount.

An application for a student loan from Intrasavings bank can be made online on the Förderbank’s website. The application process as well as the necessary documents are explained in detail. However, not every applicant receives a commitment from Intrasavings bank. If the corresponding study or performance records are not submitted or not submitted on time, the bank reserves the right to reject the application. Applicants who have once taken an affidavit can also be turned away.

9. Conclusion student loan: Worthwhile option for financing the training

If only with a financing study or further education can be tackled, worth a student loan, sometimes also a installment loan. Students whose parents can not support them are not always given Federal financial aid, and secondary employment is not an option for all students. A student loan can help cover the cost of living so that the student can complete his education quickly and without distraction. For example, Intrasavings bank awards classic student loans for training financing on favorable terms. But even installment credit can come into question in individual cases, because many banks grant students good conditions. Here, however, is often the teaching of guarantors, for example, the parents, a condition. A installment loan can help to make much-needed purchases, but it can also help finance one or two semesters abroad if the student and his family’s resources are insufficient. Here the conditions of the banks differ. Therefore, in each case, a credit comparison should be used and the amount of the loan, the duration and the monthly installments calculated with a student loan calculator, so that the best offer can be determined.

Mortgages Loans

The main idea that anyone has when applying for mortgage loans is to obtain viable financing to acquire a property.

Let’s review in depth the different aspects related to mortgage loans.

What are mortgage loans?

  • The mortgage loans are an agreement between the client and the bank with which it is agreed.

This entity entails certain conditions that we have to fulfill if we want to obtain financing, this pact, in turn, will bring some interests that have to be specified.

It is very important to understand these aspects at the same time to apply for mortgage loans, otherwise we have to make sure not to advance with the process without being previously informed.

Mortgage loans and their purpose

  • The purpose is common and maximum in these cases: you need a loan to pay the purchase of a property.

There is no endorsement and an entity is used to obtain mortgage loans in order to take the first step in the acquisition of a home.

Now we can briefly review some features of mortgage loans focused on first housing.

Mortgage loans for first home

  • Usually get mortgage loans for our first home is much easier than if you demand for another reason, let’s review below why these reasons.

First home mortgage loans carry less risk of default

When applying for mortgage loans a great aspect that is taken into account is whether it will be used for the purpose of a first home.

  • This is because, in case of not having credit to make payments, the last thing we would decide to make a default is a first home, because a place to live is a right that is not going to let escape.
  • In case our home is located in the center, it is much easier to sell, because the urban nucleus is a very coveted area for its positioning.

Mortgage fixed interest

  • One of the factors that are taken into account when choosing a fixed interest mortgage is not to carry surprises in the long run.

There is not a lot of news that comes to us from mortgage loans in which the interest was not fixed and varies without leaving reaction time to its owner, leaving him without any possibilities other than to accept the growth of his mortgage.

Mortgage fixed interest or variable interest main differences

  • Although it seems a very clear difference at first sight, there are some more that can not be ignored when weighing different options, let’s go over them.
  1. The main difference, in a fixed interest mortgage interest does not vary over the life of the contract agreed by the client and the bank.
  2. On the other hand, those that are not fixed interest mortgage tend to have a lower interest and we must take this into account when choosing a mortgage.

Advantages and disadvantages of a fixed interest mortgage

  • Despite having explained that it is a fixed interest mortgage and having briefly compared it with a variable interest rate, the first one has its respective advantages and disadvantages.

We need to know which are to recognize those that best suit our particular case.

  1. More interest:
    • Even being in a good time for the fixed interest mortgage the interest of this one is greater than the one of its opposite, this one usually wades between 2% and 3%.
  2. Reduced negotiation:
    • When offering a fixed interest mortgage entities tend to be less flexible in the other factors, for example: we find a good mortgage fixed interest but that leaves us a shorter time than desired to return the credit.
  3. A shorter term:
    • The entities that grant the fixed-rate mortgage know that they can propose a shorter term for the repayment of the loan and at the same time offer a somewhat lower financing.
  4. High Commissions:
    • Taking into account that it is not as much as in the past, the commissions continue to be higher, ending up with variable interest doubling to mortgages.

Variable interest mortgage

  • The variable interest mortgage, unlike the fixed interest mortgage has the characteristic of having interests that fluctuate each time a revision is made.

The variable interest mortgage offers a lower interest and this makes them a more attractive option, achieving, with this, being the most requested in many countries.

Another characteristic is that of being able to vary the interest, this will not vary every month or every year, but at the moment of making a revision of the contract, the interests can go down as well as rise.

Advantages and disadvantages of a variable interest mortgage

  • Having explained what a variable interest mortgage is about, we will analyze the disadvantages that these entail.

We will know which are to recognize those that best suit our particular case.

  1. A reduced interest:
    • The interest is lower, which varies a lot, being below 3% and is not fixed.
  2. Much more flexibility from the bank
    • The possibility that interest rates rise may cause the bank to offer us more opportunities in our variable interest mortgage.
  3. Longest term
    • The variable interest mortgage can offer us a longer time range
  4. Minor commissions
    • Having reduced a lot in recent years, the fees are at historic lows.

Mortgages and Maxibank

  • The Maxibank has been going down for a long time, reaching negative levels, mortgages and Maxibank go hand in hand and we have to keep an eye on these values.

Let’s review some factors to understand more how to choose the best time when asking for a loan.

Mortgages and Maxibank affect the quota increases

  • In a period of no more than 12 months we usually check our variable interest mortgage, as we have said mortgages and Maxibank go hand in hand and if at the time of this revision the Maxibank has suffered a rise, so will the interest on the mortgage.

We can not do much in this review, a trick is to know the month in which we made the mortgage and be attentive to the value of Maxibank to make sure that we apply the corresponding change.

Apart from the Maxibank, are there more things to be taken into account?

  • At the time of requesting a mortgage there are more things to consider and value before applying for our loan, then we give you a review
  1. It is unlikely that we will find the offer that best suits the first, we must be selective.
  2. Using a loan comparison, at us we offer you one free of charge.
  3. The most important thing is not the total that we will end up returning, there are more values ​​to take into account, such as the time margin, interest, commissions, financing, etc.
  4. We will negotiate with the entity as much as possible, never accept the first offer proposed to us.

Take advantage of the relationship in mortgages and Maxibank

  • In the case of knowing the relationship between mortgages and Maxibank we can take advantage of the situation, we will review a series of characteristics that carries the Maxibank in a mortgage.
  1. By depending on the Maxibank the variable interest mortgage has lower commissions, because they avoid steps that the fixed interest mortgage would make us do; opening commissions and risk commissions by interest rate.
  2. Greater financing, an increase that exceeds by 10% the fixed interest mortgage that can be a considerable help depending on the case.
  3. In the variable interest mortgage, the interest of the same varies each time it is revised, if the value of the Maxibank suffers a decline will also the mortgage fee.
  4. We are offered a longer time frame to make the full repayment of the loan.

Mixed Mortgage Loan

  • In recent years the mixed mortgage loan has become very fashionable, what attracts most is its mix between fixed interest and variable interest.

A mixed mortgage focuses on offering a fixed interest loan in the first years, once this period has elapsed the interest becomes variable and depends on the Maxibank.

The mixed mortgage is something new. What do the experts think?

  • The first thing that experts think about when weighing a mixed mortgage loan is to look for the offers and analyze them, they have obtained key data of the offers they call the most, we are going to analyze what they have discovered.

In the loan of a mixed mortgage the characteristics of the fixed interest loan and the variable interest loan are combined. Let’s review the strengths of this type of loan.

Greater protection in the mixed mortgage loan

  • Each day increases the range of possibilities when choosing a mixed mortgage, there are very attractive offers and many offer extra protection focused on the constant change that may suffer the Maxibank.

This attracts many people, as the ability of the buyer to limit interest from 1.8%.

100% mortgages

  • Mortgages 100% is something that was quite common before the financial crisis, the bank is responsible for offering a loan that covers 100% of the value of the home, it is even possible that the loan in mortgages 100% is extended in case of reform or purchase furniture for housing.

100% mortgages, difficult to get?

  • As we have commented since the crisis entities have stopped granting mortgages 100% so regularly, now it is more common to find offers called mortgages 80%, both in mortgages fixed interest and in variable interest mortgages.

The banks have become very selective with the profiles to which they grant mortgages 100%, we have said that they no longer offer so many, but not that they have disappeared, we are going to see in what a bank is fixed at the time of granting mortgages 100%.

The profile in mortgages 100%

  • Notice to sailors, get a 100% mortgage is an arduous task, we will have to look a lot to get one and, you may have to deal with the conditions. Here are some requirements:
  1. Our financial profile has to be very careful: By this we mean issuing an aura of financial security with values ​​such as:
    1. Monthly income exceeding € 2400.
    2. A job with a lot of antiquity
    3. Not be on any list like Financial Credit Institutions
  2. Our loan is focused on one of the bank’s floors: Not only on mortgages 100%, this gives us enough room to debate with the bank, banks do not like to have these homes empty.

Young mortgage

  • Before the age of 35, applying for financing, called a young mortgage, can be very tedious. From us we recommend the young mortgage, since they provide advantages (lower monthly fees) that other offers do not handle.

Let’s review some key notions in a young mortgage.

Requirements to apply for a young mortgage

  • Like other loans, young mortgages also set requirements to meet before granting any credit.
    • Previous savings: When we request the loan, they may request an amount that will not exceed 35% of the price of the home to which they will be allocated.
    • An indefinite contract or a stable job: It is something that banks are very aware of when offering a young mortgage.

Advantages in a young mortgage

  • Something that attracts a lot, since the advantages in the young mortgage are different and very attractive compared to the others.
    • They offer us longer terms to repay the loan since we have many more years.
    • The financing is higher in these cases, we can reach the mortgage range 100%.
    • The monthly installments go down due to the great margin of time available to us.
    • We dispense with the pension plan: Although we may need a home insurance or a life insurance.

Disadvantages of a young mortgage

  • When we refer to disadvantages we want to make it clear that we understand disadvantages as conditions that young people usually suffer.
    • Not having enough savings: A situation that involves having recently entered the world of work.
    • Lower work payrolls: Normal in a worker who has recently entered a company.
    • We present little job stability and we do not have enough work experience, something that, if available, is taken into account.

Bridge mortgage

  • The a priori functionality of a bridge mortgage is that of acquiring an extra home while we continue to pay a previous mortgage, a very useful type of mortgage with clear functionality.

One of the perfect situations to use the bridge mortgage would be: We are in a situation where, for example, we need more space and we find a perfect home. In this case we consider a bridge mortgage to acquire the new house while the previous one is put on sale.

How do I get a bridge mortgage?

  • There are some points that the lender entity takes into account before granting a bridge mortgage, are the following:
  1. A defined contract or present job stability: They are key to providing a responsible image.
  2. Income that supports us: If this is the case, the bank takes our request more into account, and if we also have previous savings, they can finance 100% of the home.
  3. No defaults on other mortgages: The bank will be clear that we are capable of facing this.
  4. Without personal loans with the same bank: As the entity questions whether we are able to face so many loans at once.

How much time do I have to sell the old house?

  • A deadline is always a pressing concern, and it is not for less in these cases, a bridge mortgage, as we have mentioned, helps us with a second mortgage while we sell a previous home.

The term given to us varies depending on many criteria and between the same entities, the average is in 3 years.

This is so given that the bank offers us an extra help to carry the two mortgages, but we mark a time limit.

What happens if I do not sell my old property?

  • In a bridge mortgage may be the case to exceed the term that we have imposed to sell the old property. If so, we will have to submit to the contract, which usually tends to make us start paying for the two homes and an additional cost for not having complied with the contract.

In the case that the house is sold we will only pay an extra cost as interest concept.

Mortgages at 40 years

  • As the name indicates are mortgages in which the return period reaches 40 years, there are other more frequent alternatives such as 30 years and 35 years.

This class of mortgages are almost directly related to the young mortgage, mortgages to 40 years is a term that takes time, we rarely find a mortgage that is not young and requires more than 30 years to complete.

40-year mortgages and their characteristics

  • Once again the advantages and disadvantages offered by mortgages at 40 years are similar to those of a young mortgage, let’s review the concepts.
  1. We are not interested in mortgages with a fixed interest, with such a long term the interest will be very high.
  2. We have more time, this translates into lighter payments.
  3. They will take into account our profile, because they always look for the perfect profile to distribute mortgages with security.
  4. We can discuss the terms with the entity, since having so much time can be more flexible.
  • Other characteristics that define them are the possibility of obtaining 100% financing from the bank. Despite having many advantages a big vote against is the fact of looking for mortgages at 40 years with variable interest, this makes us at the mercy of the Maxibank throughout the contract.

Subrogation Mortgages

  • Subrogation mortgages we go through the head at the time we stop being in accordance with our conditions for the bank. At that time we can consider a mortgage subrogation, which “transfers” the mortgage to another bank to improve these conditions.

Subrogation Mortgages, what conditions improve?

  • The maximum objective of subrogation mortgages is to improve our state, either because we do not agree with the current conditions or we think they are not entirely correct, we will see what conditions we can improve.
  1. Abusive clauses: At us we read dozens of complaints focused on this topic, one solution is to request a subrogation to improve our condition.
  2. Reduce interest: At the time of requesting subrogation mortgages we can get rid of associated interest or amortization, we also get rid of unnecessary links such as the one that creates a pension plan.
  3. Change the interest rate: A mortgage subrogation allows us to vary the interest rate that is applied to our loan, thus allowing us to move from a fixed rate to a variable rate and vice versa.

This will depend a lot on each personal situation.

Does subrogation mortgages involve expenses?

  • Being much cheaper than starting a new mortgage subrogation mortgages brings a series of added expenses that we must take into account when it comes to see if it benefits us in our personal situation.
  1. Subrogation Commissions Mortgages : Although most banks apply them, there is a party that has withdrawn them. In cases where they are applied, by law, they are limited to a cap that decreases each day more.
  2. Commission for opening: It is not in most cases but some usually present a commission of 1% of all the capital that we have not yet amortized
  • A part of this is necessary to discuss with the entity any cost, since a mortgage subrogation is not free, presents a series of expenses that vary depending on the bank with which we speak.

At us we recommend that there be a smooth communication between the two parties in order to clause as they are not entirely clear.