If the possibility of acquiring a mortgage credit to build an equity has crossed your mind , surely hundreds of questions arose about loans.
Don’t worry, it is common for questions to be the first thing that arises when you think of “going into debt”, but remember that there is no silly question, so here we will solve some of the most common doubts.
How does a mortgage credit work?
A mortgage loan is the financing that an institution or bank grants to a person in order to acquire real estate.
It should be noted that a very low percentage of the Mexican population has the economic solvency to buy a house in a single payment and that is why mortgage loans arise .
This type of loan allows applicants to acquire an estate without having to disburse a significant amount of money in a single payment, since it gives them the opportunity to obtain a home and pay for it within certain terms.
The amount to be paid is determined through two aspects:
- The down payment given by the client, the minimum of which is 10%; the higher the down payment, the lower the monthly payment.
- The income of the applicant, the financial institution evaluates the income of the applicant and adjusts the monthly payment so that the client’s economy is not hurt.
What can I use a mortgage loan for?
One of the myths around mortgage loans is that they can only be used to acquire a property; However, the reality is very different, since a loan of this type has different functionalities.
A mortgage loan helps you:
- Buying a property: The acquisition can be of a house or an apartment either new, used or pre-sale.
- Buying land: You can use a mortgage loan to purchase private land that is sometimes cheaper than a house or apartment already built.
- Home construction: If what you want is to build, a loan is your best option, since with it you can obtain the resource to build your home or offices.
- Remodeling your house: This is one of the options that few people consider, as many think that a loan can be used only for the purchase, but the good news is that it is also granted to those who intend to remodel their home.
- Liquidity: If you already have a house, use it as collateral and obtain a mortgage loan to have liquidity and invest it in other options.
For how long do I have to pay the mortgage loan?
This is one of the most frequently asked questions when thinking about a mortgage loan, because it is a considerable amount to invest.
Sometimes you have the idea that when you acquire a mortgage loan you will have very little time to pay it, but the reality is that the period that your debt lasts is adapted to your income, savings and profile.
Each financial institution has different periods to settle the total amount of the mortgage loan; however, most of them are between 5 and 20 years old.
The number of years is determined based on your income and down payment, but as a client you also have a voice over the period, so you can choose in accordance with the financial company the period in which you can pay the total sum without complications.
What happens if I am late in my monthly payments?
Another common question among applicants for a mortgage loan has to do with delays in monthly payments.
The first thing you should consider is that acquiring a mortgage loan involves responsibility, so you have to keep in mind that there are a series of obligations behind it.
The financial companies establish different types of penalties for debiting the monthly payments that, depending on the severity, increase for the client.
For example: if you are only late in the timely payment of a monthly installment, it is likely that you will be charged a default interest, this is the extra percentage that is provided to you and that you accept at the time of signing your contract.
It is recommended that before acquiring a loan you consult all your doubts with the financial institution with which you plan to carry out the procedure.