Mortgage Loan Simulator
Choosing among the best mortgage loans and differentiating them from other similar products is not always easy. Here we explain what these products are like and help you choose among the current mortgages so that you find the one that best suits your profile and your needs.
A mortgage loan or mortgage is a bank financing product with which an entity lends money to a natural or legal person, generally to buy a house, agreeing a term and certain repayment conditions.
The main characteristic of a mortgage, unlike other loans, is that it has two payment guarantees: the mortgage guarantee (the property acquired with the money) and the personal guarantee (the holder’s other present and future assets). This implies that if we do not fulfill our payment obligations, the bank can keep the property. And in case its value does not cover the debt, it can seize our other assets.
The fact that there are more loans for housing is no coincidence: there is more demand to acquire real estate and, logically, this has triggered the demand for financing. Among the reasons for this increase are that banks are giving cheaper mortgages than ever before, that many of those who could not buy in 2020 are doing so now, that there is a new demand from people who have been able to save during confinement and are looking for more space, and that housing prices have fallen in some areas.
Bancomer mortgage loan
A mortgage loan is a contract through which an entity lends a determined amount of money to a company or individual for the acquisition of a property in exchange for determined interests and during a term established for it.
That is to say, a mortgage loan is the amount of money that a bank grants us so that we can buy a house. This mortgage loan supposes a guaranteed obligation so that, in case of non-payment, the guarantee of return of the loan would be the property itself.
In short, and simply explained, the main difference between the mortgage loan and the mortgage is the guarantee that ensures the repayment of the amount received as a mortgage loan.
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Types of mortgage loans
It is a long-term loan of money between the bank and the client to finance the acquisition of a property. This real estate property is guaranteed in favor of the bank to ensure compliance with the loan, which is known as a mortgage. This means that if you do not pay the loan, the bank will take legal action for collection and this could result in a foreclosure of the property.
The money from this credit can only be used for purposes of purchase, expansion, remodeling or construction of housing, purchase of sites, offices or commercial premises, or refinancing of previously contracted mortgage debts.
Also known as a cash installment or cash payment, in the case of sales and purchases. It is the amount of money for your property that you pay out of your own pocket. It is usually an amount saved for this purpose. If you finance the purchase of a property with a mortgage loan, the down payment must consist of at least 20% of the value of the property.
Also known as the total amount or final value. It is the total amount of money that the client assumes as debt. It corresponds to the sum of all the periodic payments defined in the installment value or dividend of the mortgage loan during the established term. It includes, in addition to the dividend, the mortgage payment and fire insurance. This is what you end up actually paying.
When a person thinks about buying a house, one of the most common doubts is where to get the money to pay for it. The reality is that few people have the ability to buy a house with cash payment, that is why there are different types of financing.
A mortgage loan is a loan that is made for a determined term by a financial institution with a cost, that is to say, interest. It is usually adapted to the client’s savings and payment needs, since the client must pay a previously agreed amount on a monthly basis.
The conditions of mortgage loans are negotiable and adaptable, therefore, many people ask for information in different institutions to find the best credit condition that suits their needs. It would be a mistake to choose the mortgage offered by your regular bank without first learning about other options.
In this way you can make a comparison of mortgage loans to choose the one that offers the best conditions and that even allows you to save a significant amount of money, or if necessary, to buy a better property.