Mortgages (except “Mirror Mortgages”) are most often provided by banks to their clients to finance their housing needs. Both purchase and reconstruction. The mortgage can also be applied for the purpose of the so-called settlement of liabilities – for example in the case of inheritance or divorce.
With this type of loan it is also possible to refinance another existing loan – most often from building savings or another mortgage, which has not yet been repaid with another bank . The reason for refinancing is cheaper interest rates or a fee structure for a “new” banking institution. Even so-called ” American mortgages ” have their place in the market. These may not serve to address housing and other related needs. The client can use the money from the American mortgage for anything. Every mortgage loan must always be secured by real estate. It is not enough income and a clean bank register…
Types of mortgages
1 / Special-purpose loan – money intended exclusively for housing
2 / Non-purpose loan – American mortgage
3 / Special-purpose loan in combination with a non-purpose part
Possibilities of using mortgage loans
1 / Mortgage for the purchase of property (flat, house, building land)
2 / Refinancing the existing home loan
3 / Reconstruction of a residential property
4 / Construction
5 / Repayment of previously paid funds
6 / Settlement of property relations
Choosing the right type of mortgage loan
The suitability, possibility and type of mortgage should be discussed in detail with a financial expert . If such a banker represents one financial institution, it is good to secure the offer of other companies . Optimally at least 3-5 . The differences are very significant.
The ideal option is to use the financial services provided by a comprehensive consultant , who conducts such a selection procedure on behalf of the client – free of charge by default. Such advisor will then also provide the client with administration and processing of the entire loan in the winning bank.
Today’s offer of banks is very wide and interest rate differences are relatively small. Finding the best loan is to find a consultant who does not represent a bank . On the contrary, it has information from the banking market and is able to represent its client’s interests in the unilateral offers of bankers. They will find out what the prospective applicant expects and what possibilities they have. On this basis, it will select the most appropriate form of financing for the whole project .
American mortgages have much higher interest rates. However, the client can use the money from such a mortgage for anything.
A different view of the repayment period
Most people considering housing mortgages set their maturity as short as possible . And so that the amount of repayments correspond to their maximum financial possibilities . Even at the cost of keeping their home budget tight during the credit commitment.
There is a much more interesting and calmer way. This is the ” Mirror Mortgage ” option.
Choosing a bank to set up a mortgage
The best and easiest choice will be made by a good financial advisor. In addition, he / she is able to identify the client’s situation at the first consultation and respond flexibly. They also prepare combinations that save the client a lot of money and nerves, or unpleasant surprises.
Practical example: Mortgage to buy an apartment
One of our clients recommended us to his brother-in-law who needed to finance the purchase of an apartment. Each spouse had an account at a different bank, and they had mortgage offers from both institutions. They did not know how to decide. In discussing the ideal solution, we showed the young couple the effect of the Mirror Mortgage and it was decided immediately. Thanks to this special combination we saved the spouses interest on the whole repayment period of about 120 000.- USD.
Order a free meeting with a comprehensive loan expert. Financial navigator recommends Ing. Martin Gajda – mortgage loan specialist.
Benefits of consulting with a comprehensive expert
- Non-binding and free consultation
- Find all energy saving options
- Settle administration in one place
- Discuss possible combinations you will save on
- Calculate multiple banking houses for easier orientation without losing your precious time
- Select the bank that best suits your requirements
- You do not have to circulate the banks and find out the differences and make a difficult analysis