Loan with Property Assurance: How it Works, Rates and Simulator
Is it possible to take a loan with a guarantee giving the property to the bank? Yes! And this is one of the most advantageous alternatives in the market for those seeking to get credit without paying high interest. The interesting thing about this proposal is that it is possible to get high values, and pay them on more extended terms. Therefore, this type of credit has become more common lately, even if some people still distrust the proposal or feel afraid. But of course, using with intelligence and caution there is no danger.
What is secured property loan?
This type of loan is also known as mortgage or refinancing. It is when the client places the home residence or commercial as collateral for the bank, in order to achieve the release of credit. The amounts granted may vary according to the valuation analysis that varies from bank to bank.
The tip for not having problems or regrets is, before undertaking this business you have to be aware of the conditions, know exactly how the rules work and the total interest that each bank and financial institutions offers. As said, conditions may vary, since the interest issue is low on secured home loan compared to other loans.
How does secured loan work?
Each bank usually has its own policies, grant rules and trading conditions. So, consider all the possibilities before choosing the bank to close the loan. Normally, the time for paying off the debt is quite long. It varies from 12 months of payment, being able to reach 15 years, or even 20 years (maximum). This varies greatly from the conditions of each bank.
Already the amount released to the customer, can also vary from bank to bank. The credit released usually corresponds to up to 50%, 70% of the value of the property. Depending on the value of the property it is possible to get a good release of credit.
Where there are rules you have to be careful. The property to be given as collateral of the debt must be removed, without financial problems, and also in the name of the owner who is requesting the refinancing of the property. In the latter case, depending on the bank, the property may be in someone else’s name, however it needs to be aware of the trading and the disks it incurs. Therefore, the payment time, as the release of the credit varies greatly from the creditor institution, and the conditions applied by it.
Myths about the loan with property guarantee
This type of personal loan is well known and realized in the United States. In Brazil, in recent years it has become a more common practice. There are still myths behind this kind of debt. Many believe that the bank’s goal is to take the home or the customer’s car.
Of course not! It is much more advantageous for the bank to carry out the loan than to stay with the house, or car, because it represents costs for the bank, such as payment of IPTU, among others. Of course, if there is no payment of the installments, a sale auction of the property is made.
How much to choose with the property loan?
This trading option is indicated for those who are experiencing serious financial problems, for example, high debt and high interest rates. So it’s a good choice. But when used with caution is also indicated for other issues such as:
1 – Purchase of a new property
2 – Realization of general reforms
3 – Carrying out an international trip, courses, among others
Advantages of secured home loan
The main advantage is that there is not much bureaucracy, ie depending on the conditions of the bank, you can quickly release the credit. Another advantage is the debt repayment time, which in some cases can extend up to 20 years. And of course, the interest rates are lower compared to other types of loans, that is, you do not lose so much money.
It is advantageous to opt for this financial product, but it requires the person’s planning and organization. Because if this does not occur, it may end up losing the property. But the bank will always try to negotiate, but do not let the installments pile up, even because the choice for this loan is for a way out and not for the accumulation of more debt in your account.
Warranty Loan Simulator
Total Requested (Amount in R $) Months Interest Rate (per month) Plot Value Amount
In addition to other financial institutions. Before choosing any of them, do a search. Depending on the bank this may present you with better conditions than others.