Mortgage – a contract with a bank for several dozen years obliges!
Taking out a mortgage should be a well-thought-out decision. It is a long-term loan, usually taken for a very high amount, which binds borrowers with the bank for up to 20-30 years. Optimal loan conditions, low margin or commission for joining the loan are the basic parameters that borrowers should take into account when making such a loan. How to choose it?
Loan with solid collateral
From the perspective of the bank granting the mortgage loan, it is a liability with a solid collateral, which is a mortgage established on a residential property and entered in the land and mortgage register in court. If there would be a situation in which the borrower would stop paying the principal and interest installments of such a loan, the bank may pursue its receivables from the real estate because it is entered in the land and mortgage register as authorized to use the mortgage of the given facility.
Besides, the loan mortgage may have numerous other collaterals, such as :
· life insurance of the borrower,
< p> · unemployment insurance,
· bridging insurance (established until the mortgage is entered in the land and mortgage register),
· </ span > property insurance against fire and other random events,
· low own contribution insurance.
It is worth adding that the borrower applying for a mortgage in accordance with the provisions m of the Polish Financial Supervision Authority should have at least 20 percent. own contribution, where half of this contribution may be replaced with an appropriate security.
The most important parameters of the loan
Taking out a mortgage involves the necessity to incur certain costs related to fees and commissions charged by the bank , and above all with the interest rate on such a liability. When choosing a loan, pay attention to its parameters as APRC – Annual Actual Interest Rate, which includes all costs that the mortgage borrower will ultimately incur.
The easiest way to choose a mortgage is based on the ranking of the best offers in a given time. He will present such a list for the good of the client. For the given parameters of the loan its value and repayment period, the customer can see the cost of the loan, the amount of the installment and the APRC of the liability. In addition, a good comparison site should allow you to see detailed information about the loan and allow you to submit an initial loan application online.
The comparison site must also indicate the possible range for the loan amount and loan period, basic requirements for potential borrowers and a representative loan example mortgage, housing in a given bank. This helps you to make an informed decision about taking out a mortgage with a specific lending institution.