Monday, 2 June 2014

Own contribution in a mortgage

Browsing the offer banks on mortgage loans , you will find that there are very large discrepancies concerning the own contribution that a person applying for a mortgage loan must wear. Sometimes the banks give credit to the entire value of the investment, sometimes only for 70%, and sometimes also cases that the amount of the loan may be higher than her.

Of course it is related to credit risk, which is borne by the bank. It happens so often that in one bank, there are different amount of own contribution. And this is because each application is considered individually and the applicant, which in the eyes of the bank is more reliable, it can make a smaller contribution to their own .

What could be the contribution of their own? However there is quite a bit of flexibility and each bank approach this on an individual basis. It can be specified sum of money, which the applicant wants to use its own funds to finalize the investment. Another form, very popular especially in construction loans is the plot, which is also considered as own contribution . There are many possibilities here, and it all depends on the bank.
The higher contribution of its own , the banks look at the person making the request łaskawszym eye. Decreases because in this case the credit risk and the customer can even negotiate some conditions for a home loan . It is about the amount of interest that the banking commission, which may be reduced in this case. If you have a sizable contribution of its own , automatically lowering is also the amount of the mortgage , which makes you less interest paid. So let's try to make this part of their loan was as large as possible.

But how do they gather? There are a couple of ways. You may for a time to give up holidays, you can let go of the exit to the restaurant. It is time to think about increasing the hours of work or even a second source of income-seeking. The possibilities are very many. And although it may be a very difficult challenge, it must be remembered that the more we dedicate ourselves at the beginning, the lower the monthly payment will be at a later date and we will be more when the time comes to loan repayments.

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