A mortgage refers to the loan of money that accompanies a mortgage. It always relates to a property belonging to the borrower, whether it is the one he buys with this loan or another property.
What is a mortgage loan?
When a buyer applies for a loan from a bank, he can protect his ability to repay through a surety organization. He needs solid guarantees to induce the bank to grant him a loan. The mortgage is the most common: it allows the bank to seize one of the investor’s real estate assets in payment default. The loan granted in exchange for this guarantee is called the mortgage loan. Most of the time, the amount of a mortgage loan is between 50% and 70% of the property’s value.
How does a mortgage loan work?
The mortgage loan works in the same way as a conventional loan. The bank sets an amount, a repayment period, and an amortization schedule. This type of loan can vary between 15 and 30 years. The mortgage must be signed before a notary.
Bullet mortgage loan
The loan in fine refers to a loan whose capital is repaid in one go, at maturity. Throughout, only interest is paid back. The loan in fine can be spread over 3 to 15 years. It has a minimum value of 21,500 euros, and there is no maximum amount.
What is the rate of a mortgage loan?
The mortgage loan can benefit from a variable or fixed rate. This rate is more or less high, can be revised, and varies according to the value of the property and the investor’s needs. You should know that the rate can change from one file to another.
How to get a mortgage?
The mortgage loan can be granted to all types of borrowers for all projects. To benefit from a mortgage loan, the investor must be a French tax resident and declare his income in France. It is also necessary that his income and current debt ratio allow him to repay his credit. The mortgage does not require you to take out loan insurance.
Mortgage loan: calculation
There are several online simulators to estimate the cost of a mortgage loan for a mortgage. Very precise, they make it possible to calculate with precision the price of this guarantee, taking into account the type of purchase made and its location. It can indeed be the purchase of an old dwelling, a new dwelling, or even land.
Mortgage and life loan
The mortgage life loan makes it possible to obtain a loan from a bank in exchange for a mortgage on a particular property. When the borrower dies, the bank resells the property and can thus reimburse itself (interest and capital). It is a loan system often used by seniors.
