Home mortgage loans
Is it better to borrow through a consumer loan or a credit card? And why choose mortgage rather than building savings loans? We bring you an overview of loans and loans for housing.
Mortgage loan companies
There is no legal right to provide banking services. Banks can choose freely to whom they can provide their services and who they do not. And without giving a reason. While current accounts and savings are usually free of any claims on clients (banks simply do not like opening new accounts to people in executions), several conditions have to be met to obtain a loan. It is necessary to have a sufficient income (due to the amount of the monthly installment), an employment contract for an indefinite period, not to be in probation or notice period and not to have records in the debtors’ registers under 4-5 years.
Current mortgage loan rates
Unbeatably the most widespread type of credit. Usually, we borrow $ 10,000 to $ 0.9 million for 6 months to 10 years. Purpose loans (housing, car, reconstruction) with invoice proof are usually somewhat cheaper. Similarly, banks offer better interest rates for longer and longer-term loans.
Annual Percent Expense Rate: Indicates the total annual cost of the loan. Apart from the interest rates itself, it also takes into account the fee for negotiating and managing the loan, and other at the first sight hidden charges, without which the loan could not be obtained (eg compulsory insurance or current account maintenance fees).
Especially for smaller loans, it is worth paying more attention to RPSN than the interest rate itself, as more or less hidden charges of all kinds increase the total cost of borrowed money significantly. We recommend our articles We borrow responsibly and Loan – do I have a chance to get it?
Best non-purpose loans below, complete comparison of all banks here. Average interest on loans is 8%, best deals start at 5%.
Mortgage loan rates today
Without a mortgage, few people now have their own housing. This is a long-term loan (up to 40 years), most often in the order of millions of dollars, always with a collateral of real estate. The mortgage can be funded either by own housing (purchase of a house, flat, building plot or construction itself), as well as investment (purchase of property for the purpose of further rental) or recreational facilities. It is also possible to borrow money completely without giving the purpose (US mortgage), but it is a percentage more expensive.
Home mortgage loan rates
Whether the purpose of a mortgage is any, it is always necessary to guarantee a permanently residential property (a privately owned apartment, a building plot, etc.). Some banks also accept recreational or non-built-up building plots, but this may be offset by a surcharge on the interest rate. It is very problematic to finance housing in cooperative ownership, when it is not possible to guarantee the real estate itself (here the cooperative owns, the client buys only the cooperative share with the right to use it).
LTV (Loan to Value): The ratio of the loan amount to the security value of the property. Banks do not lend more than 90% of the value of the property. To get better interest you need to borrow more than 80%. American and investment mortgages may have a LTV ceiling below (60-70%).
Best mortgages for housing below, complete comparison of all banks here. The average interest rate for mortgages with a 5-year fixation is 2.2%, with the best deals starting at below 2%.
Best mortgage loan rates
Good servant but evil master. If we have a good credit card with no management fees and we pay off our obligations within a no-interest period, then we borrow completely free of charge. But woe, if we can not get the money back in time. It will start charging us with high interest, which often reaches more than 20%. Paid and premium credit cards usually offer additional benefits in the form of insurance or bonus for spending.
Best credit cards below, complete comparison of all banks here.
Refinance home mortgage loans
Very small loans (not online mortgage loans) for a very short time (usually up to 30 days). Micro-loans are primarily a domain of non-bank lenders and are extremely expensive. There is also no exception to the APRC in the order of thousands of percent. Although the extremely high cost of these loans is partly justifiable (risk clientele, high transaction costs), a reasonable person does not borrow money like that.