Amount of Mortgage Loan
If you are going to buy a house, your concerns will be to get the total amount of money that asks the seller. Other calculations aside, you have to do a simple sum:
If your savings are not very large, the amount of the mortgage loan becomes decisive when it comes to buying the house. What is the amount of the mortgage loan that can aspire to?
Banks usually offer mortgages amounting to 80% of the valuation. Financial institutions, banks and savings banks, mindful of the high housing prices in Spain have been getting products to exceed 80% of the valuation (statutory maximum). To this end the concepts of mortgage are 100 maximum mortgage, mortgage, bridge, etc..
Let’s start from the beginning. Initially there are two factors that determine the amount of loan you can get:
* The value of valuation. In general, the amount of mortgage that a bank or you will be able to offer between 70 – 80% of the appraised value of the dwelling (According to Law 2 / 1981 of March 25 a loan secured by the mortgage can not exceed 80% of homes). The house is conducted by specialized companies, usually on behalf of the entity (see the taxation of housing) and also required by the current Spanish legislation.
It should be noted that the appraisal value may be less than market value at the time of its completion, in some cases up to 15%, and therefore can cause financial problems for the buyer of the dwelling as entities that limit the amount of the loan to a maximum of 80% of the valuation, not the value agreed in the purchase.
* Your income. Banks and other lenders estimate that the depreciation rate of the loan (plus other duties involved) are not considered more than 40 100 of net income properly accredited. Obviously, this factor may be relaxed to grant the credit if he brings other collateral (property, securities, etc..)
However, as stated above, financial institutions aware of the high home prices have been pulling products guaranteed to cover amounts in excess of 80% of the valuation. Mortgage 100 is a popular name for those seeking funding. Thereon:
* An example of such products would be the “Super Mortgage Revolution.” This is a mortgage – 100 (97% financing on the valuation) and with the possibility of deficiency during the first five, through a mortgage insurance as collateral. This mechanism of insurance becomes a key financial institutions to overcome the legal quota of 80%.
* Mortgage Bridge. In many cases the buyer already owns a house and looking up a formula that housing venda …
* Require banks and savings banks to report their new products.
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