The mortgage loan is the loan collateral available. The collateral may be red or pink book, automotive goods, rotation, machinery, equipment … However, many people still don’t understand about the form of mortgage loans. This has led to a general intangible psychological apprehension when borrowers. The article below will help you better understand the forms of trust loans, pros cons and tips for the client by this form.
1. What is a Mortgage Loan?
The mortgage loan is the loan secured by the property (e.g. the red numbers, the property is the base material, housing). In the course of the loan collateral still belongs to the ownership of borrowers, however the Bank will keep the documents about the legal side of this property as the Red Book, car registration ,.. in case the customer does not pay the debt. This property also be elephant as a “Lifesaver” of financial institutions.
The nature of the types of mortgage loans
The tế.vay mortgage has collateral is kind of traditional lending products of the Bank, need collateral and guarantee papers on collateral. Lower interest rate loan trust and time to process the transaction.
One of the prerequisites of this type is pahri have collateral, this property will be the Bank valuation and loan limit depends in part on the value of this valuation. With this kind of customers can be very high-rate loan compared to the value collateral instruction.
2. Pros, cons of mortgage loan form available collateral.
The biggest advantage of mortgage loans are low-interest and long-term loans time.
In fact, the present form of the loan purchase mortgage by the intended vehicle purchase to bank loans, the maximum loan duration of up to 5 years and the loan limit buy new cars up to 90%. Not so, for the home, land, then the client can borrow up to 25 years and funding to 100% of the value of the collateral.
A further advantage of this form is the primary borrowers remain fully for their collateral, customer can use on different purposes such as support on the business travel needs, or the needs for family travel (for collateral is a car).
However, with this loan form, the client will have to accept longer disbursement period than other forms such as mortgage loans. Record type for this form also requires more from personal history records, proof of income, proof of life, birth place of residence …
See also: mortgage loans and credit loan mortgage-loan form “benefit” than
3. The collateral used to back mortgages
According to the regulations on the mortgage loan assets of banks. Use the property to the mortgage loans of credit organizations is the ability to have the property transfer, the purchase was easy, including:
-Housing, buildings attached to land, including property affixed to houses, buildings,
-For property insurance, the insurance contract value also in the collateral.
-The production and business establishments, such as factories, hotels, shops, warehouses … and the tools, machines, equipment attached to factories, ships, planes …
-Other property if the law has specified.