Friday, 30 May 2014

Advantages and disadvantages of mortgage

Mortgage loan is the cheapest loan on the market that are on offer banks. At one time the most cost effective mortgage was a foreign currency loan granted in Swiss francs. The interest rate on the loan was less than 1.5 percent, but the situation a few years has dramatically changed with the change of the franc.

A mortgage is a lot cheaper than a cash loan and that the card where the interest rate reaches up to 20 per cent. interest rate on the mortgage is their undoubted and the biggest advantage . Very often it is two times lower than in the case of consumer loans . Average interest rates on mortgage loans is approximately 8-10 per cent, of course, depending on the bank.
Another undoubted advantage of the mortgage loan is the ease of its receipt, for those who have preserved liquidity and have sufficient income and property which may be a security for the loan .

Banks are increasingly offering customers the repayment of the loan in decreasing installments , or they are fixed, but low, due to the fact that it is a long-term loan .

The advantage is also that the borrower can choose the currency of the loan , which is easier for the customer.
Mortgage also has its drawbacks, and the basic one is that you have to have a specific goal, which is associated with the property. Another important downside mortgage is to have a free mortgage . Many people applying for such a loan is a property that is already loaded other loans.
Despite a few flaws loan is a very attractive product for the customer, as well as for the bank, because it has a robust and reliable protection, which is real estate. Because there are mortgages we buy a property, for which the borrower could not only afford the same savings. For some this may be your only opportunity to obtain cash to buy a flat / house or its renovation.

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