Everything you need to know about home equity loan
Many people need that little force at first to start their own business, right? However, few know the secured loan.
What is a secured home loan?
The secured loan, also known as property refinancing, enables the request for high values with good conditions. Being able to reach up to 60% of the value of the property, it is possible to install in up to 20 years the credit. For example, if your property is worth $ 100,000 you can apply for a loan of $ 160,000. Still little used in Brazil, this type of credit is increasingly attracting customers as a credit option in these times of economic crisis and financial complications.
Home Refinancing is a line of credit where your home comes in as security of payment. In this way, the interest rates are lower, facilitating the repayment of the installments. Previously, this service was popularly known as real estate credit, chattel mortgage, and so on. In this loan option, it is necessary that the applicant has a property settled in his name. In addition, the minimum value for this category is 40 thousand dollars, where you get up to 60% of the value of your property. The property can be a residential house, a commercial room or even a land. However, the asset cannot be renegotiated during refinancing.
It is always recommended that before closing any credit application, you make several quotes. To do this, use a credit comparator that offers a 100% free service. Thus, you will receive the best loan terms. Secured home loan is an important process that needs attention as it includes a high loan amount and a long repayment term. That’s why it’s interesting to quote as soon as possible.
To apply for Refinancing Property, you must have some documents. See below the most requested by banks and finance.
- ID / CPF
- Proof of income
- Proof of address
- Property Registration
- Marriage Certificate (if married)
With credit comparators it is possible to do an online simulation to find out on average how much the installments of your secured loan will be, so that you can plan better. The main advantage of running an online simulation is that you can find rate options in one place without having to face bank queues, everything can be done in the comfort of your own home.
Features of Home Secured Loan
Below are the main conditions to apply for your secured loan:
- Up to 20 years to repay loan installments (totaling 240 installments);
- Get up to 60% of the value of your property on loan
- The property must be settled and the documentation aligned;
- The property must be in the name of the request applicant;
- Interest from 1.40% per month;
- The value can be used for any purpose;
The interest embedded in this type of loan is usually more attractive than other lines of credit, this is because when granting credit, the bank receives as security of payment a real asset in this case the property, through fiduciary sale. This means that if you fail to repay your loan installments, the bank has the legal right to have your property pledged as collateral, meaning that if you do not intend to repay your debts this is not the best option.
Once the loan application is made, the applicant will have access to the support that offers a step-by-step request for a mortgage refinancing. Where the beginning is given by an assessment of the property that will be offered as collateral and the state of documentation of the registration form of the interested and its situation before the credit protection agencies. After it will be analyzed via the applicant’s CPF number your ability to pay the installments, it is extremely important that everything is in order and the conditions are met so that the money finally falls into the customer’s account.
That is, anyone who owns their own property can apply for a home refinance, however the refinancing portion is limited to 30% of their monthly income. For those looking for savings and a high loan amount, secured loan is the best option as it allows you to solve many financial problems at once.
There are now several banks and lenders that can offer a secured loan, so you need to quote in several places before closing any deal, at these times have a credit comparator that can quote multiple partners using just a single register, facilitating your search for the best rate on the market.