Thursday, 31 July 2014

Losing your job and your mortgage

The unstable economic situation affects the health of many Polish companies. Those defending against bankruptcy date back often to radical methods, including exemptions. With the possibility of losing a job has to reckon today virtually everyone. The situation is complicated, however, have a mortgage. What do you do when you get a notice, and paying off your mortgage? Job loss is neither pleasant nor easy, especially if you have a loan, the high installment must be paid, and we are deprived of current receipts on account. In this case, you should not avoid the problem and rely only on the accumulated savings - these will sooner or later come to an end.

Immediately after receiving the notice should therefore take an active job search, but contact your bank, which gave us a mortgage. The best solution will be here to request a deferral - deferment of loan repayment. The idea of grace is simply a suspension of loan repayment, thereby extending the credit period the number of months in which the installment was not paid. The Bank, of course, also in this period shall charge interest on borrowed capital, but temporary lack of the need to repay the installments will allow us to maintain liquidity. The chance that the bank accede to our request is large, because he also depends on the repayment of our obligations.

In your application, describe so the whole situation, and if we've already found a new job, but the work will begin only after some time, we join a preliminary agreement with the new employer. Bank of knowing that we already have a new job, this approach should favorably consider our request. Remember, however, that despite the declaration of our commitment to continue to pay, the bank can give us a negative decision, ie it does not agree to defer payment of loan installments.

for provident

Another option to cope with the loss of jobs in the context of the mortgage payment, is the conclusion of appropriate insurance. But it is a solution for provident, from which we have yet to take before receiving notice. This solution has its supporters and detractors. The latter accuse him that unemployment insurance is quite expensive, and yet does not have to be useful. The costs of purchasing this type of insurance is actually a considerable and is usually from 1 to 3% of the loan in the first 2-3 years of funding. On the other hand, in the case of job loss, it guarantees the repayment of loan installments over the next 12 - 24 months, or until the exhaustion of insurance such as 50,000 . For unemployment insurance can join at any time repay the loan, but remember that it will have effect only when we get the status of the unemployed and job loss is the fault of the employer. It will not be so effective when we are freed from our guilt, they give up work, or we decide to terminate the employment contract by mutual agreement.

Wednesday, 30 July 2014

Responsible for long spouse

Not always. Limitations in current legislation, amending it existing regulations that concerning property relations between spouses. According to them, the creditor, the debtor któego one of the spouses can not always cater to the common property. This depends on whether the other spouse has agreed to incur liability.

If you gave such consent, the creditor may demand to satisfy also the joint property of the spouses. However, if the commitment was made without the consent of the other spouse, or a commitment of one of the spouses does not result from legal action, the creditor may request to meet with the personal property of the debtor, with remuneration for work, or income received by the debtor of other gainful activities, as well as benefits obtained from the copyright and related rights, industrial property rights or other rights of the creator. In a situation where the claim arises from the conduct of the company, satisfaction may also occur with items of property belonging to the company.

If the debt was created before the creation of a community, or apply to personal property of one spouse, the creditor may demand to meet only the personal property of the debtor, with remuneration for work, or the income received by the debtor of other gainful activities, as well as the benefits derived from the rights of creators .

Obtaining the consent of the other spouse to incur obligations depends on his decision. Such authorization enables the creditor to satisfy a wider range, which also includes a joint property of the spouses. This solution is designed to protect the family - a common property remains intact if the commitment was made without the consent of the other spouse.

Monday, 28 July 2014

Is reverse mortgage pays off

Reverse mortgage is still a novelty on the Polish financial market. However, already went through many critical comments, alleging lack of profitability, and even enumerate losses arising from its use. What is a reverse mortgage and whether it really is unprofitable?

Assumptions reverse mortgage

Reverse mortgage is a financial service based, but not limited to housing loans, the transfer, or assignment of rights to real property, usually a house or apartment. On the basis of an agreement between the institution offering this kind of service (the bank), and its customer, there is an agreement in which the customer is poured on the bank of the right to property. This, however, remains in its use until death. The institution, which over the right to property is committed to providing a monthly salary that will be paid for life. Less commonly used is a one-time payment of the whole. The amount of the compensation depends on two main factors - the value of the property and the age of the donor. On this basis, the institution predicts the period in which it will be responsible for payment of wages. Reverse mortgage is intended primarily for people who not only have a right to the premises, but also completed a sixty-year life.

Advantages and disadvantages

Unquestionable advantage of reverse mortgages is access to extra cash, of which it is difficult to retirement. For many financial institutions, older people are not attractive customers, making their access to such loans is difficult. Another advantage of reverse mortgages is that the signing of the contract does not require leaving the house (apartment). Moreover received money from this account are not taxed.

The first drawback of reverse mortgages are limitations associated with the use of the property, because we can not pass close in the fall. But the most important disadvantage is the reduced amount of remuneration received in return for the property. Therefore, the value of the property is determined by the bank on which basis the calculated duty owed​​. This makes the effect customers receive the total amount of 30 to 60% of the value of the house or apartment.

In conclusion, the reverse mortgage is not the preferred solution, because the assumption is associated with loss of a large part of the value of assets. So if you have a property, and the extra cash is needed urgently to us, let us consider a home exchange (flat) on the smaller of the charge difference, or total sales. In the case of the sale will be able to pay the monthly rent and the remaining money by transferring them to the place, can bring additional profit.

Mortgage, a borrower's death

As a rule, the procedure in the case of a mortgage is dependent on whether the borrower borrower alone or possessed Borrower. What are the possible scenarios for this type of procedure?

No Borrower

If the borrower enlisted commitment alone, after his death, the mortgage agreement simply expires. If the loan was secured assignment of life insurance, the bank will ask the insurer for compensation. Its height can accurately correspond to the sum of debt, which is equivalent to the fact that the heirs receive the property free of mortgage. The value of the policy, however, may be greater or less than the value of the loan, which will result in an overpayment or underpayment of credit. In both these cases, the overpayment and underpayment possible will be accounted for part of the estate, ie, the heirs will inherit a certain amount or to repay the remaining debt.

This debt will obviously be higher if adequate life insurance is not included. Then the bank will determine the heirs of the deceased. They can, but they do not have to accept decline. However, if you decide to adopt it, it will be obliged to repay the obligation, to release the property from the mortgage. If they have an appropriate credit rating, it may still repay the loan in installments. They can of course also a time to pay off the remaining debt, or sell the inherited property, and thus obtain funds to repay the loan.

Mortgage contract does not expire, however, if the deceased took a loan from another współkredytobiorcą. Then for repayment of the loan will be responsible borrowers and second all heirs of the deceased, unless of course received a decline. Also in this case there may be a possible repayment of part / whole loan from the execution of claims under an insurance policy on the life of the deceased.

If he did not have adequate insurance, the amount of debt remains unchanged. If the debt is not repaid by means of compensation, the bank with all the host fall heirs to sign the relevant annexes to the credit agreement. They will be with współkredytobiorcą responsible for the further repayment of the loan in fixed during the division of the estate section. The same principle will function as the real estate division after repayment of the mortgage obligation. Finally so współkredytobiorca and everyone taking fall heir so they had a small part in the value of the property, ie, for example, half, quarter, or one eighth of its value.

Sunday, 27 July 2014

Is student loan pays off

A student loan is an attractive proposition not only for students but also for doctoral universities. It is addressed primarily to the poorest who can not afford to pay for education.

On what basis, and who can get it?

A student loan is a preferential credit granted full-time students and part-time and doctoral students on the basis of the Act on student loans and credits of 17 July 1998 (as amended). The granting of student loans can be applied for learning both in the public schools, and private schools, assuming that the studies started before the age of 25. You can join the program regardless of year of study, allowing you to benefit from the assistance of both those just starting their studies at university, and students of the fourth or fifth year.

What are its objectives?

A student loan is granted for a period no longer than the period of study, with a maximum of 6 years. It is paid in installments, the actual height is 600 per month. Installments are paid during the academic year, ie during the actual collection of science - it is a maximum of 10 months of the year. The continuation of the monthly payments confirmation learn, passed by the student at least twice a year - benefit is paid after completion or discontinuation of study.

A special feature of student loans is that the repayment (except in the case of study discontinuation) starts only after two years after graduation. It takes place in monthly installments and the repayment period is at least twice as long as the period of receiving benefits. For example, if a student fetch a loan of twenty months (2 years academic), its repayment will be spread over a minimum of 40 months.

It was only during the start of the repayment of the loan, the interest charged to the student. Their height is half the value of the rediscount rate for the Polish National Bank. Its current level is 5%, so the interest rate on the loan is only 2.5%. Previously, when downloading the loan, as well as during two years grace period after graduation, interest shall be charged with a specially created fund Student Loan.

Is this a good solution?

The drawback of student loans is that newly minted college graduate begins his "adult life" with considerable debt. It's actually the only downside of this preferential credit, because he has much more advantages. Its greatest advantage is the extremely low interest rates, the amount of which is often several times lower than the values ​​encountered at cash loans. In addition, there is a solution for those who do not have the capacity to take out any other loans. Complementing these features for a period of grace period after graduation and long-term same repayment obligations, it can be concluded that the student loan is a loan that pays off.

Mortgage, a form of employment

When analyzing a loan application, a person earning $ 10,000 may be perceived by banks as a customer less secure - trusted by people reaching monthly income of 1,200 dollars. This form of employment relationship determined by the potential borrower.

Bank, and analyzing credit applications, focusing of course on the amount of the monthly salary, the number of people in the household, whether the credit history and current liabilities. In assessing the credit worthiness but also take into account the form of employment potential borrower.

The greatest trust among banks enjoy a person employed under a contract of employment for an indefinite period. This form of employment is considered to be the safest, because it is a way for banks guarantor of long-term employment. This in turn is associated with the receipt of remuneration in the long term, and thus the ability to timely payment of loan installments. It should be noted that a mortgage can also apply for a person whose employment contract does not have a character with respect to time indefinite employment. Depending on the institution, just a few months' seniority with the employer, by obtaining a loan there were no major problems. Banks usually require in such cases the length of the above three or six months.

Other forms of employment

Obtaining income under contracts of order, or the work does not disqualify a potential borrower. Similarly, the situation is for people running their own business. So earning borrowers, however, are nevertheless treated less favorably by the banks.

Potential borrowers employed on the basis of the so-called agreement "junk", ie of the order or contract work, must demonstrate above all the continuity of employment. Banks therefore define a minimum period of earning an income from this source. Depending on the institution, this period ranges from six months to even two years. based on the analysis of financial data banks tested in this way, the regularity of runoff salary and of course its height.

Even less trust are gifts from people running their own business. One to apply for mortgage lending, they boast an annual or even a three-year business activity. In their case, on a slightly different basis is calculated as creditworthiness. At its calculation of "full-time" employee, the bank takes into account the average salary of the last three months, and for people running their own business, the average salary is mostly determined for the annual period, or even 24 months. Banks also take into account the ratio of revenue to costs generated by the trader. Best for such a borrower would be if every month he earned exactly the same - revenue in individual months can not deviate too much from the income calculated on an annual basis or two years.

As you can see self-reliance does not always pay off. It is noted, however, that in recent months is no small improvement seen credit offer dedicated and self-employed persons receiving revenue under contracts with the order or work. Still, earning more, have lower capacity as compared to the credit "etatowcami".

Saturday, 26 July 2014

Interest rates and mortgages

Usually we think of it only as a permanent component of our interest rate mortgages. What are the interest rates? How determined is their height? How to influence the level of monthly installments of our loans?

Interest rates

WIBOR - Warsaw Interbank Offered Rate, is the interest rate at which banks lend cash to each other, that is, interest on loans for the so-called Polish. the interbank market. The index value is determined on each business day by calculating the arithmetic average bids submitted by banks participating in the swap. Due to the fact that WIBOR set is so often the case with long-term loans are used WIBOR 1M, 3M and 6M, ie the interest rate applicable for a period of one, three and six months.

The same principle is fixed interest rate of LIBOR (London Interbank Offered Rate) is determined for the London market for pounds, dollars, Swiss francs and euros. For the latter currency is calculated as EURIBOR (Euro Interbank Offered Rate), which is the interest rate applicable in the case of loans in the euro area.

... And their relationship with our credit

All of the above indicators - interest rates - have the same impact on our mortgage - regardless of whether they are provided in U.S. Dollars, or Euros, or francs. Indeed they are a regular part of your mortgage interest, which consists of just the interest rate and the bank's margin.

Why is the interest rate component of the interest rate? On the one hand this is because the bank lending with a given sum must, at a certain price, borrow it from another bank. On the other hand, the bank having this amount could this just borrow a percentage of it to another bank. Taking into account the interbank interest rate is therefore to cover the cost of bank lending, or offsetting the lost benefits that could be obtained.

It is worth noting also that interest rates when mortgages are determined, as mentioned, for longer periods of 1M, 3M and 6M. Hence, in contrast to the unchanging standard of the bank's margin, the difference in their values ​​may be affected by the increase or decrease in our loan installments - the word on the overall cost of the loan. He will, of course, the smaller, the lower the level of the applicable interest rate, so it's good news for borrowers is every time reduction WIBOR, LIBOR, or EURIBOR.

Friday, 25 July 2014

Documents needed for a mortgage

The process of obtaining a mortgage loan, it is always not an easy procedure. It will not end because only on the analysis submitted by our employer proof of earnings. In fact, at each stage of granting this kind of loan you may be asked about a whole range of other important documents for the bank. What?

confirmation of identity

The procedure for granting a mortgage is characteristic for a given bank. Each of them can so during the lending process, ask us to provide other documents. The first element, without which it is impossible to start the procedure of credit and draw the appropriate conclusion is to confirm our identity. In most financial institutions simply show two documents, the most common is of course an identity card with passport or driving license.

Credit Rating

Rating of our credit facilities will be made, inter alia, on the basis of evidence of the salary. Here, unfortunately, the case is more complicated because of the multiplicity of forms of employment. Most often, however, it will be issued by your employer confirming your employment and average income for the last three or six months. There will, of course, it could provide individuals who receive wages owed ​​to them on the basis of contracts or order, the so-called civil law contracts. In their case came borrowers are asked to submit accounts and contracts to support a finding achieved in the past (usually one year) salary. In addition, you will need to make available cooperation agreements that allow the estimation of the amount of earnings after the granting of the loan. Other documents must okazaćoby entrepreneurs. They are: representation of the data registered business, certificate of non-payment from the Inland Revenue and Social Insurance, and the PIT on income earned in the last year.

What are the capacities?

In addition, when assessing the credit worthiness of our bank, unless we run our bill was in it, can ask about the last statements of your account. Besides, you may be asked also for an extract from a credit card account. If it turns out that our creditworthiness is too small to take a loan in the amount, the bank may request the presentation of a document confirming the resignation of a credit card. In extreme cases, also due to insufficient indicator of creditworthiness, we will be forced to prepay borrowings. After settlement of the liability would be given by the appropriate evidence of repayment of the loan, which also must be submitted to verify the bank where applying for a mortgage.

As for real estate

After checking the creditworthiness of the bank is also interested in obtaining documents relating to the same property you intend to purchase. It will be necessary to present a preliminary sales agreement signed with the developer or the person selling the property to the so-called. the secondary market. For the real estate secondary market necassary will confirm that the seller has a property right to dispose of it - it will be mostly a copy of the land register.

Each bank shall at the same time a separate policy for granting credit, you might find that you will need to show other documents - get ready for this eventuality too.

Is the single has a chance for a mortgage?

When a mortgage borrows marriage, it adds up to a kind creditworthiness of both spouses. But what if the household consists solely of one person? Is being single helps, or perhaps more mind when considering an application for the granting of a mortgage loan?


Offer does not differentiate between bank lending margins and commissions making the height of the marital status of the borrower. Nevertheless, it can significantly affect the amount calculated creditworthiness. Although one can not indicate the general regulations, as the calculation made ​​on the basis of individual information provided by the borrower / borrowers.

For example, single earning $ 2,000 net will have a higher credit standing of who receives compensation in the same amount of marriage, because in his case, the salary must keep two people. The marriage will be better for the bank to borrowers, if while each spouse will be earned after 1500 . The lender in calculating the credit shall take into account the cumulative value of income, and although they will be less "per person" is, and so the calculation will be based on the indicator 2x1.500 = 3.000 . It is worth mentioning that the calculation of creditworthiness, are taken into account all the persons belonging to the household. This applies, of course, the children, the possession of which, unfortunately, may adversely affect the rate calculated capacities.

The question of confidence

Banks, however, prefer marriage. They are customers for them more safe and secure. It is linked to the occurrence of any financial problems. The single losing a job, losing at the same time source of income. In the case of marriage, when one spouse loses a job or chronically ill, the burden of repayment falls on the other spouse, and although income received will be much smaller, the borrowers are going to have another source of income.

With this in mind enough, however, to single zaciągający mortgage commitment, he decided to take advantage of insurance against illness or job loss. Consequently, the possibility of a mortgage by single depends on the particular case of the credit.

It can be concluded, however, that well-paid single, you will not have problems with obtaining financing for the purchase of its own "M".

Thursday, 24 July 2014

Debt repayment - for what and how much

Taking out a loan or a loan analyze the interest rate, fees for providing liability if its length. Rarely, however, we assume that due to negligence or temporary financial hole, we will not be able to pay the installments of the loan period. So we omit the amount of costs of debt collection actions, and these, unfortunately, can be considerable.

Any additional costs

Forgetfulness can also cost us a lot in paying back the loan. Just a slight inattention, or temporary lack of money in the account to the bank to be able to - as indeed with the agreement signed by us and the table of fees and charges - we charge the cost of downloading outstanding debt. These actions may have with the different nature - it can be sending a text message on our cell phone number given to e-mail, and even visit a bank employee in our house.

How much it will cost?

The cost of each collection activities is not constant at various financial institutions. Some banks perform some of them free, others they charge for absolutely every effort in reminding us of the outstanding installment payments. Do not be surprised at such a vindication of their policy, it may be because a sizeable source of additional income for banks, and so:

- SMS message: the most convenient form for the bank reminders of overdue installment. If the bank did in fact implement such collection activities, each SMS sent to us unless its giving is free, can deplete our balance by the amount of one or two dollars.

- Written reminder: its preparation and sending is not true nor complicated, nor does it require too much effort, because these messages are usually performed automatically by a special system. This does not change the fact that the written warning can pay from a dozen to a few dozen dollars.

- The phone bank employee hotline telephone to the late borrower is one of the most efficient forms of recovery of the outstanding dues. For telephone call center employee, however, the bank may cancel up to fifteen dollars.

- Intervention home visit: the most expensive and not used by all banks form of late payment reminders. The costs vary considerably between individual banks, but the price range of the intervention visits borrower is from 50 to even 110 dollars.

Redo actions

But this is not the end, as if in a certain (fixed with a bank employee or designated in writing, or in a text message) within not pay installments, the bank has the right to renew the debt collection activities. It simply means that after a certain time we get another letter or an SMS. In this case, our account charged to costs of both debt collection activities.

In conclusion, before entering into a loan, or a loan's see exactly how much we will pay not only for the value of the bank due to interest and fees, but also for the eventual recovery.

Mortgage loan upon sale

Not every debt under the mortgage is aware of the fact that at any moment can sell credit property. Though it is naturally associated with the necessity of additional paperwork organization, it is not particularly with a complicated process. How does he look like?

Sale of an apartment or house, the purchase of which were entered into a mortgage loan, it is possible only when the obligation is paid in full. The first step in the sale of real estate will thus obtain a certificate for the current amount of debt. After his conquest of the sales process will be slightly different look when the buyer is financing the transaction with its own resources, and otherwise, when used will be financing from a bank loan.

The procedure will be easiest if the buyer pays for the apartment own means - in cash. Just then, the transaction will be made under a contract evidenced by a notary public, and the bank will get its due value of money - funds that exceed the value of the debt goes directly to the seller. Bank after obtaining the total owed ​​to allow removal of the protective measures it a mortgage, and then it will be possible to introduce changes in the land register of real estate, ie, rewriting the property to the buyer.

The procedure is complicated slightly if the buyer are backed by some bank credit. Also in this case, to make changes in the land register will be possible only after the repayment of the loan the person selling the property. Just as before, the transaction is made on the basis of a notarial deed, however, due to the need to take into account the interests of both banks is much more complicated. It also requires co-operation between the banks, which may extend up to the sale procedure 2, 4 weeks. When it comes to finalizing the transaction, the new crediting poured funds into the account the existing mortgage, and the remaining money goes to the account of the seller. The data of the previous owner and the bank are deleted from the mortgage book the property, and in their place are entered information about the new owner and giving it the financing bank.

In conclusion, the sale of an apartment or home laden mortgage is possible and even required to fill a series of formalities, this is not a particularly complicated process and that causes problems.

Wednesday, 23 July 2014

Cash loan or mortgage loan

Unexpected expenses, unfortunately, have the property that they occur most frequently in the least appropriate to this moment. If you're wondering about the choice of a cash loan, know that the mortgage loan will be plenty for you certainly favorable solution. Why?

The loan and the loan

The mistake is unfortunately common, interchangeable use of the term loan and the loan. These are in fact, although in certain areas like, two different financial products. Common features of both solutions is that their result is a debt that must be repaid by the borrower or the borrower. The difference between them is, inter alia, that from the legal issues of credit governed by the provisions of the banking law, while the loan is a civil code. Another feature that distinguishes credit loan is that in case of loan funds transferred to the borrower's become his property, while in the case of a loan, they are forwarded to the borrower only available for a limited time in the credit agreement.

The costs of both solutions

Apart from the above differences, these solutions also distinguishes their cost, especially when compared to will be subject to fees and charges associated with the granting of a cash loan and mortgage loan. Everything becomes clear after just one glance at the so-called APRC ratio, which is the annual percentage rate - it is expressed as a percentage of the value of all mandatory costs (commission for granting, interest and other fees, if any) of credit and loans on a scale of one year. Ratio of the annual interest rate for a mortgage loan is now about 10-11 per cent, while for cash loans amounts to even more than twenty percent or more. To illustrate the differences in the price we pay for both tools is to use a comparison of the cost of a cash loan and mortgage loan of twenty thousand, granted for a period of five years - both liabilities will be repaid in equal installments on time. For the real interest rate equal to 24% of the loan cash will be obliged to repay the monthly installments, the amount of which is about 549 . This makes throughout the entire repayment of the loan - within five years - financing costs reach a level of 12,940 . For mortgage loan APR at 10.00%, the monthly installment will be for approximately 412 , making the total cost of financing reaches the level of 4720 .

Why loan?

According to the example above, the difference in cost of the two products, that until 8220 , which directly indicates the advantage of a mortgage loan compared to cash. The difference in interest rates is due to the additional collateral mortgage. Its establishment is tantamount to a reduction in credit risk, which allows you to minimize the cost reductions associated with the granting of funding. Although the assumption of a mortgage loan is tantamount to incur additional costs the borrower - associated with the establishment of mortgages - it still remains favorable in relation to the cash loan.