Anyone who has a mortgaged home (and therefore a mortgage loan to repay) knows how heavy this burden can become in times of crisis. Whether you are in debt or you want to prevent a situation like this, consolidated mortgage credit can be a savings solution.
Consolidated credit consists of a type of loan that allows you to combine several credits that you have simultaneously in one, aggregating them in a single bank or financial institution, which allows you to reduce the monthly fee (in some cases up to 60%) and extend the payment term, being left with only one installment, which results in a relief of the monthly budget.
The difference between a consolidated loan with a mortgage and without a mortgage has to do precisely with the fact that the former implies giving a property as collateral, while the latter does not.
Normally, since it implies the granting of a guarantee by the consumer, consolidated credit with mortgages has better conditions (in terms of interest rates) than when it does not. It is natural that this is so, by giving your home as collateral, you are improving your probability of being approved on credit and you end up giving the bank more security.
In addition, and precisely because the customer gives a property with a value as high as a house for collateral, usually this type of consolidated credit is usually approved more quickly, thus making it ideal for those who urgently need to restructure their finances.
However, care must be taken when making a consolidated mortgage loan: in case of default, the house will be used for repayment. This is, without a doubt, a disadvantage of this type of loan.
Take, for example, the case of the Fontes family, which has a home loan of 300 thousand us dollars and whose monthly fee is 700 us dollars, a car loan with a payment of 350 us dollars and a credit for works that it contracted for remodel the kitchen and you pay 200 us dollars a month.
So, in total, this family has 1250 us dollars in monthly credit charges. Since his total income is around 2000 us dollars and in the case of a household composed of four people, any financial emergency that arises is enough to leave the Sources in a delicate situation.
Supposing that they would like to resort to consolidated credit with the mortgage, combining these three debts into one, what would this family need to do?
First, in order for their consolidated mortgage loan application to be approved successfully, they would need to be aware of the market value of their housing and to know specifically how much they still owed the bank.
Note that if the amount owed is very high in relation to the market value of the house, then it will be more difficult to make a consolidated mortgage loan.
Second, they would need to know which institution offers them the best conditions. To this end, the Fontes family could use the consolidated credit simulator, through which, through the insertion of some data (such as the amoun of charges they have with credits and the like), they can consult all the existing offers for free. market and join online, quickly and without any costs.
When making a consolidated loan with a mortgage, the monthly installments of Fontes – which will be aggregated into one -, which currently amount to 1250 us dollars, can be increased to 750 us dollars, a very significant reduction of 40%.
When proceeding with a consolidated mortgage loan, this family not only saves considerably, but it simplifies, in a lot, the monthly management of its expenses by having a single monthly fee for loans.
For whom the home loan constituted the biggest financial burden that is held, this consolidation solution may be the most suitable. However, it is necessary to ensure that the monthly installment is always fulfilled, under penalty of losing the house, which, in the beginning, is the biggest financial investment of a family.