The history of mortgage lending dates back to the Middle Ages when lords gave credit to peasants. It was not until the beginning of the 20th century that French banks were allowed to set it up. It was first, with the mortgage life loan. Perceived as one of the causes of the 2007-2010 financial crisis, the mortgage has been re-studied to ensure that it is secure and that all parties can benefit.
A mortgage is a real guarantee that a creditor takes on an immovable property for which he has granted a credit. But without the owner being dispossessed.
In summary, a mortgage is simply a loan secured by a mortgage.
First of all, the mortgage loan is a way of using your wealth to be able to obtain a loan at a more favorable rate.
The percentage or percentage of the value of the object covered by the guarantee determines the maximum amount of the credit granted, the amount of which varies from 50% to 100% of the value of the property, depending on the financial institution involved.
Thus, thanks to the mortgage, the financial institution is assured to recover the entire amount lent in case of default of the borrower. If this situation arises, the financial institution is entitled to seize the property and then sell it so that it can recover the amount initially committed by the borrower. The credit being settled, the mortgage is lifted.
1 year after the last repayment date of the loan, the mortgage is automatically lifted. However, it is possible to proceed before. Simply by selling the good. The lifting of the mortgage results in an authentic notarized deed. Note that the mortgage can be transferred to another property after an agreement with the bank.
Any owner (individual or company) with real estate can subscribe to a mortgage loan.
Very often, the property offered as security is a dwelling. It can also be an office or business property whose value is determined by a real estate appraisal.
As for the refund, the owner can do it in advance or with monthly payments as the case of traditional loans. The loan rate can then be amortized, fixed or variable.
Depending on its use, there are two types of mortgage loans: the classic acquisition loan and the cash loan.
This formula is involved in the purchase of real estate according to which the borrower mortgages the property he buys. In this case, he is often required to take out various insurance (home insurance, insurance balance remaining) as a deposit for the credit agency.
The cash loan, meanwhile, is a financial loan that can meet different types of need (debt repayment, purchase of movable or immovable property, financing of a trip). The cash loan is prized by individuals, communities, professionals and companies.
The attractiveness of interest rates is the main advantage of the mortgage compared to traditional loans. This allows entrepreneurs to:
In some cases, the subscription to the mortgage loan is entitled to a tax reduction, but this remains conditional.
For lenders, the mortgage loan provides credit recovery insurance and facilitates bank exchanges. Which is beneficial both microeconomically and macroeconomically.
First, it’s a costly procedure. In the form of a notarial deed, it is imperative to provide notary fees, which include:
Among other things, the credit institution could ask for insurance, fees or provision costs.
Secondly, the granting of the mortgage loan is done under certain conditions. Must be taken into account, the debt ratio of the borrower, his statements of account.
We must also ensure that we can repay the credit to avoid being seized his property. This is the main risk of the mortgage loan.
An entrepreneur can apply for a bank for his mortgage. However, the conditions differ from one bank to another, hence the importance of comparing offers. In all cases, the destination of the funds will be requested by the institution and the borrower will have to justify it.
Banks give an answer between 10 and 60 days after receiving the complete file of the company.
Faced with difficulties in choosing the most advantageous mortgage solution, it is possible to call a broker.
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