Given the refusal of many banks to grant credit to people with a complex economic profile, the loans with mortgage guarantee granted through financial intermediaries have become a good alternative to obtain financing. Payday loan consolidation can be very useful to help paying payday loans and their conditions are vary greatly. Therefore, before hiring one of these credits it is important to take into account a series of factors to know which is the best offer.
The keys to finding the best home equity loan
The financial intermediaries that can grant us a loan with our house as collateral can charge us more or less depending on their rates, although the price is not the only aspect that we should value when ordering one of these products. Let’s see what we have to look at to know if we are facing a good offer or not:
- Amount: first, we have to look at how much money they can lend us. In general, the maximum amount will be a percentage between 30% and 40% of the appraised value of the property placed as collateral, with a limit of between € 100,000 and € 600,000, depending on the intermediary.
- Term: As the loans with a mortgage guarantee are hired when a lot of money is needed, it is advisable to go to an intermediary that allows us to repay the loan in a prolonged period, between 10 and 15 years maximum.
- Interest rate applied: interest is another factor that we must take into account, since the lower it is, the less we will have to pay in each installment and in total.
- Commissions and other expenses: we also have to look at the cost of possible opening, study or intermediation commissions, as well as the additional costs of a notary, registry and tributary (IAJD).
- Deficiency period: finally, if we foresee that we will have problems to pay the first installments, it is convenient that we contract a loan that allows us to enjoy an initial grace period.
Of all the intermediaries that operate within the market, SUIZAINVEST is one of those that offers better conditions , because it allows us to obtain up to 30% of the value of the property that we put as a guarantee (with a maximum of € 300,000) to be returned up to 15 years and with an interest from 11% TIN (12.68% APR). In addition, it does not charge study or opening fees and allows us to enjoy a period of capital shortage of up to 4 years.
In what situations is it convenient to apply for home equity loans?
As we said at the beginning of the article, a home equity loan can help us obtain large amounts of money to deal with a wide variety of situations. Let’s see what are, according to SUIZAINVEST, the most common purposes of these products:
- To start a business: if we are entrepreneurs and we do not have a lot of income, we can hire one of these loans by placing the premises as a guarantee.
- To pay the costs of an inheritance: if we inherit a home and we do not have money to pay the corresponding taxes, we can obtain it if we contract a loan with the inherited house as collateral.
- To reform a property and increase its sale value: we can also use these products if we want to reform our house so that its sale value increases.
- To reunify debts: these products are also used regularly to group several debts (loans, credit cards, etc.) into a single loan and pay a single monthly fee.
However, it is not convenient that we use these products if we are not sure that we can pay the fees. The guarantee provided is only the property, so in case of default, it could end up being seized to settle the debt.