There are many reasons we can need liquidity, and there are also several financial tools available in the country to achieve them. All you need to do is decide which option suits you and your needs best. Within these alternatives, there is the possibility of mortgaging a house in exchange for receiving a loan. That is almost always used to buy a property. For example, it can pay debts with financial institutions or respond to any unforeseen event that requires large sums of money for its resolution or any goal. Even though the phrase “mortgage a house” has a bad reputation, it is an action that, if taken responsibly, turns out to be an option to be considered. However, keep in mind there are disadvantages to this option.
What is a mortgage loan?
In principle, a mortgage loan is a financing methodology in which the person places a property as collateral to pay the debt to obtain a loan. Without the loan, the borrower can charge the property in question. Once the entire loan is canceled, the property is released, and its rights are recovered. In our country, the interest for a loan with a mortgage guarantee is usually fixed. Financing costs are higher if the money is for purposes other than land, the acquisition, or the construction of a home.
Before mortgaging the house in exchange for a loan, what to keep in mind?
Before mortgaging the house in exchange for a loan, it is essential to consider the specific conditions concerning terms, commissions, interest, and any other variable you make at the cost of financing.
Remember that you can lose your house if you do not comply with the payments. For example, commonly for this type of credit, the terms are wide-reaching, sometimes at 10, 15, 20, or more years, so it is recommended to have good job stability. On the other hand, you should calculate your monthly savings capacity by subtracting all the fixed expenses from your income to know if you will deal with the amount of the installments to be paid each month.
In conclusion, mortgaging the house is a relevant fact that requires a complete analysis of your situation and the offers available in the market, since they can vary quite a lot, being some cheaper than others.
Can I mortgage my house to pay debts?
One destination that can give to the loan obtained through the mortgage of a house is the payment of a debt. There are numerous alternatives in the market to opt for instead of resorting to a mortgage. We recommend an option in case your debt is high since the amounts of credit you can obtain through this type of product are significant, in many cases exceeding one million pesos. Keep in mind, if you use this tool for that purpose, you will be paying off your debts in exchange for contracting another for an extended time.
What are the requirements to mortgage my house in exchange for a loan?
Each entity has the faculties to establish the requirements to mortgage a house in exchange for a loan; nevertheless, in general lines, the following are required:
- You must be over 18 and under 64 years old.
- Have verifiable fixed income.
- Have a positive credit history.
- Have seniority of work for more than one year.
The relationship between the amount of the fee and the applicant’s income is not more significant than 25% or 30%.
- Present the CUIL or CUIT.
- Property title of the property to be mortgaged.
- Proof of real estate tax.
- Proof of municipal taxes where the cadastral data appear.
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