Once the loan is fully repaid, the borrower must wait another year before the mortgage is automatically lifted. He will pay mortgage release fees if he wishes to resell his property to redeem his debt before the term. The amount of these costs is determined by decree. It is possible to add a top-up on a mortgage. When the mortgage value, the property’s market value minus the amount of the debt, is sufficient. Another creditor can come to graft on the property via a mortgage recharge.
The mortgage is inseparable from a land registration system. Indeed, its publication is essential to secure real estate transactions carried out by professionals and individuals.
Focus on the Rechargeable Mortgage
The borrower can also decide that his mortgage is rechargeable. In other words, the rechargeable mortgage loan consists of a mortgage on the guarantee of a mortgage and also guarantees a consumer loan. During the mortgage repayment, the mortgage is reused to secure various loans. A single property thus serves as collateral for multiple loans up to the limit of the initial mortgage amount. It imposes formalities, including the intervention of a notary. Except in the case of the rechargeable mortgage, the mortgage lasts if the Credit.Mortgage Rate
The rate observed in the context of a mortgage loan does not present any rules and is, therefore, like other loans. There are fixed rates and variable rates. Variable rates are often lower than fixed rates but are riskier because you can revise the monthly payments upwards, and the borrower does not know the overall cost of their loan in advance.
Mortgage Calculation
The mortgage generally entails additional costs linked to the declarative rules and the formalism of the security. Various costs will be assumed, such as notary fees, registration fees (tax), and mortgage registration. These fees will represent an average of 1% to 2% of the amount.Legal Mortgage
As its name suggests, this mortgage does not result from a contract but a legal provision. The causes are varied and determined by law. For example, there is a mortgage between spouses to guarantee debts that may arise between them.Judicial Mortgage
It emanates from a court decision. Judgments can create a claim in favor of one of the parties. The judicial mortgage guarantees this debt if the judge grants its registration.You can also grant a conservatory judicial mortgage on request to a creditor to preserve his rights.
Conventional Mortgage
It is the case of a debtor wanting to take out a mortgage loan.The contract must imperatively be passed before the notary under penalty of nullity. In addition, it must be the subject of a publication with the land registration service. This formality serves to notify the existence of third parties (for example, a potential buyer).
Possible Alternatives for Mortgage
As mentioned previously, there are alternatives to the mortgage to guarantee your mortgage. Indeed, two other mortgage loan guarantees are possible:
Caution
The PPD (the privilege of money lenders)
First, the bank guarantee is a commitment made by a specialized financial organization. Thus, it acts as a guarantor in the event of failure to reimburse on your part. He then balances the outstanding capital with the bank then seeks to be returned by favoring an amicable solution such as a staggered reimbursement. The deposit is the type of guarantee preferred by banks and represents 60% of the guarantees taken out for a mortgage. The bank submits the elements of your file to the surety body (most often Credit Logement), which validates or not your file as quickly as possible.The bank guarantee has the advantage of being the cheapest and most flexible guarantee. If the surety body refuses to guarantee your mortgage, don’t worry; the bank can then direct you to the mortgage.
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