By definition, the mortgage is a credit that aims to finance the purchase of housing such as a house or apartment, the acquisition of land for construction, or expenses related to repair, l improvement, construction, maintenance of a building. The amount of such a mortgage must be greater than 75 000 USD. There are unregulated and regulated real estate loans in which you will find different types of credits. So to find your way among this multitude of real estate loans, it is a good idea to contact real estate mortgage comparators online to find the real estate loan adapted to your situation.
Real estate credit: a multiple choice
Credits Not regulated
Unregulated real estate loans are granted for individuals and businesses. They are therefore not regulated and allow to acquire housing, land or to carry out work. Not being regulated, the duration of such a credit is very variable, it can go from 20 to 35 years. Same thing for the rate, it can be of a different type to know a fixed rate, progressive or flexible. Generally, the lender will study your income to offer you an offer. Insurance may be chosen by the lender, in particular, to cover the risks related to death, disability or loss of employment.
Depreciable property loan
This is the credit most often used for individuals. The depreciable credit can be fixed-rate or adjustable rate and its duration can be up to 30 years. As a borrower, if you subscribe to a depreciable real estate loan, you repay through your monthly payments a share of borrowed capital and a share of interest. Gradually during your repayments, the share of capital increases while the share of interest decreases proportionally. Indeed, the interest of such a credit being calculated on the capital remaining to be refunded, they will, therefore, decrease as and when your repayments.
Real estate credit in fine
If you subscribe to such a credit, your monthly payments will only aim to cover the interest and you will have to repay the entire borrowed capital when the loan expires. The advantage of real estate credit in fine is above all to benefit from tax deductions. This credit is mainly for people who are already heavily taxed. The term capital is financed by monthly savings which is represented by an investment advised by the lender. Most often this investment takes the form of life insurance. The rate applied for a mortgage in fine can be fixed or variable.
This credit is a short-term credit intended to finance a transition period between the sale and purchase of real estate. It is therefore for borrowers who are already homeowners and wish to sell their property and buy a new property. This credit is therefore a form of advance made by the lender. The maximum credit period is 24 months. The borrower will repay the entire bridging loan only when the sale of his property has taken place. In the meantime, the borrower will repay through monthly installments the interest on the borrowed capital.