What should you know before contracting a Liquidity Credit with Mortgage Guarantee? If you plan to give a home as collateral for a loan, you must take into account several factors. Asking for a loan and giving your property as a mortgage guarantee is known as a liquidity loan or mortgage guarantee credit.
Before contracting a liquidity loan with mortgage guarantee it is important that you take into account the following points:
- You must pay monthly fees plus interest.
- You will have to pay life insurance just like when you apply for a mortgage loan, because if something happens to you, the debt is canceled.
- You can request up to 70 percent of the value of your home.
- Generally the term to pay is less than that of a mortgage loan.
- The value of the property must support the value of the credit, that is to say that the credit you request must not exceed 50 percent of the value of the property.
If you have a lot of credit card debts, this could be a good option, since you will end up paying a single debt with a lower rate in a term of up to 15 years.
What are the advantages of contracting a Liquidity Credit with a Mortgage Guarantee?
You will be able to obtain very attractive rates when offering a property as collateral and you will be able to obtain a loan relatively greater than when a personal loan is requested.
Once the loan is approved, the bank will deposit all the money in your account. However, you must take into account that the commercial value of the property will first be evaluated.
What should I do to contract a Mortgage Credit with Mortgage Guarantee?
In the first place, the property you plan to give as a guarantee must have a factory declaration, be independent and notarized. You should also take into account that if you request a Liquidity Credit with a Mortgage Guarantee you will not be able to have other mortgages and your taxes must be up to date.
These requirements are similar to those of a mortgage loan transfer, since the bank will require first degree mortgage in its favor. If you are determined to take out a loan like this, you should take into account that unlike mortgage loans, the interest on home equity loans generates VAT.