Mortgage

How to sign a mortgage without commissions and save more than 2,000 euros

By Unknown 15:01 000 euros, How to sign a mortgage without commissions and save more than 2

How to sign a mortgage without commissions and save more than 2,000 euros

Some banks offer mortgages from Euribor + 0.99% with no opening, novation or cancellation fees
THE WORLD
When a bank gives us a mortgage, it charges us the "favor" for three main avenues: applied interest, life and home insurance that almost all mortgages "encourage" to hire, and commissions which are paid at the time of signing and during the life of the loan. The comparator HelpMyCash.com warns that, although the interest rate and the price of insurance are very important, the commissions are responsible for a few thousand euros of surcharge. What commissions do the mortgages have and how much do they cost in euros? Even the cheapest mortgages can have up to a dozen commissions, but the most common are the following four: Opening Commission. The bank charges for the management of opening the loan, the study of our case and the calculation of what our fee and conditions would be. Its cost ranges from 0% to 1.5%, but most banks that charge it apply 1%, that is, 1,500 euros of each 150,000 mortgage. Novation Commission. If at any time we want to change the conditions of the loan (lengthening the term, lowering interest, increasing capital, adding or removing a holder ...) the bank can charge us a commission of between 0% and 1%, being the most applied 1%. If this change we want to realize it in a mortgage of 150,000 euros when we only have 100,000 to pay, it would have a cost of 1,000 euros. Commission for early cancellation. If one day we have extra money and we want to give it to the bank to proceed with the payment of the mortgage, the bank can charge us a commission of between 0% and 0.5% of the amount contributed. If for example we give back 20,000 euros at a blow, we will have to pay 100 euros of commission. Subrogation commission. In the case that, after a few years, another bank offers us a mortgage much better than the one we have and we want to take the mortgage to that other bank, the bank with which we initially signed can charge us a commission of between 0% and 0.5% of the outstanding capital, equivalent to 500 euros per 100,000 mortgage pending. Thus, for example, a person who, in a bank with commissions, wants to change one of the holders of a mortgage of 150,000 euros when he there are 100,000 to be returned to the bank, can pay 2,500 euros: 1,500 per opening + 1,000 for novation. Figures that will be greater the higher the loan requested. How to avoid paying these fees? There are only two ways. The first is to look for a mortgage in one of the banks that announce that they do not charge these commissions, such as the Mortgage Orange of ING to Euror + 0.99%, the Mortgage Mari Carmen of Abanca to Euror + 1.25% or Mortgage Unoe to Eur. + 1.10%. Others such as Mortgage Santander to Eurur + 1.25% will only charge us the subrogation commission, that is, in case we go to another bank. The second route is negotiation. From HelpMyCash.com they give us the keys: "Mortgages are not closed-priced items such as shoes or a car, but the offer is tailored to each client. That is, two people who go to the same bank can come out with two mortgages totally different because the bank before making an offer will look at their monthly income, their ability to save, the number of holders, their age ... The interesting thing about mortgages are flexible is that they admit some 'bargaining' at the moment If the client has a good financial profile, he agrees with the rest of the contract and this is the only point that distances him from the firm, the bank can eliminate it.Another way of pressing is to get offers from other banks without commissions and presenting them to the entity of our interest, to see if it agrees to equalize the conditions, removing for example the commission of ap ertura, which would already save us more than 1,000 euros just to sign

Mortgages without commissions are not a myth: these are the banks that grant them

By Unknown 14:55 Mortgages without commissions are not a myth: these are the banks that grant them

Mortgages without commissions are not a myth: these are the banks that grant them

The opening commission is one of the expenses that makes the people who want to take out a mortgage more tremble, because it is a surcharge that greatly increases the cost that borrowers have to pay to formalize the scriptures. However, from the helpMyCash.com mortgage comparator, they assure that there are a few banks that do not include this and other commissions in their mortgage loans, which means a significant saving of money for their clients. BankiaBankia started the year 2017 with an offer attractive and unusual: decided to eliminate all commissions on their mortgages, both at variable rate and fixed rate. Of course, in order not to apply these charges is essential to have the payroll domiciled in the entity. Its variable rate mortgage has an interest from eurobond plus 1.20% with an initial fixed of 1.20% that is applied in the first year, while its fixed mortgage has an interest of between 1.75% and 2% 75%, depending on the term selected. In both cases it is not necessary to contract insurance or other related products. ING The renamed ING (now without the "Direct") does not include any type of commission in its Mortgage Orange, which by its conditions is one of the best in the market. This product has an interest from Euronext plus 0.99% (with an initial fixed of 1.99% that applies the first year) and a repayment term of up to 40 years. To contract it is necessary to domicile the payroll and sign a home insurance and another one of vida.Hipotecas.com Hipotecas.com tops the list of fully virtual banks that do not charge commissions of any type. In addition, this entity also does not require the domiciliation of the payroll or the contracting of other related products in order to access its mortgage loans. Of its catalog are mortgages at a variable rate, from euríbor plus 1.59%, and fixed mortgage, whose interest is 2.5%. OpenbankOpenbank, Santander's virtual bank, does not include commissions of any kind on their mortgages . Of all its products, the most notable is its variable rate mortgage, which in addition to having one of the lowest interests of the market (euríbor plus 0.99%), has no initial fixed and does not include any links with cost. To hire this mortgage loan only have to pay a payroll of at least 900 euros.Evo BancoEl list of entities that do not include commissions of any kind on their mortgages is closed by Evo Banco, another of the best-known online banks in Spain. In its loan portfolio for the purchase of housing we find two products: the Intelligent Mortgage, with an interest from euríbor plus 1.35% (euríbor plus 1.85% during the first year), and the Flexible Mortgage, with a fixed rate of 1.99% that is applied during the first years and a variable Euribor interest plus 1.35% that is applied during the remainder of the term. Other entities opt not to charge the opening fee.But if what we want simply is not to pay the opening commission, there are other banks that will not charge us, although their mortgages may include other penalties. This is the case, for example, of Liberbank's Fixed Rate Mortgage (from 1.60% TIN), which has no opening costs, but includes a penalty for early repayment and subrogation of 0.5% (0.25% % from the sixth year) and a risk compensation by 1% interest rate. Within this group of entities we also find Abanca. Your Mortgage Mari Carmen at variable rate (from Euroreg plus 0.95%) does not include commissions of any kind, but your fixed mortgage does have a 3% interest rate risk penalty. The interest of this second product is from 2%.

So will the mortgages of the future: without Euribor, more expensive and less effort to pay

So will the mortgages of the future: without Euribor, more expensive and less effort to pay

Just five years ago, Spanish entities were disputing the mortgage market by offering their clients loans for 100 percent or more of the price of housing, with terms of up to 40 years and with differentials that in some cases only reached 0 , 25 percent on the Euribor.

Then came the crisis, demand and mortgage supply subsided and waned, financial markets closed and with them died the housing lending model that had been in vogue until then.

The crisis, although it is not yet known when, will happen, but mortgages will never be the same as before, because the bank, once again ready to give loans, will have also changed the way they face the risks.

In 2007, a year before the bankruptcy of Lehman Brothers started the worst nightmare for financial institutions around the world, Spanish banking granted 145.296 million euros in loans to housing.

These were times when the banking business was expanding and mortgage lending helped accelerate the entry into profitability of the new offices.

There is nothing left of all that. Now it is necessary to reduce the overcapacity of the system, to purge the excess of offices and to adapt it to the level of business rational and free of bubbles.

Credit granted to mortgages

Mortgages will no longer be the same

It is necessary to invest with prudence the funds that so much cost to the entities obtain of the wholesale markets and to respond, when the situation of the entity allows, to the demand that has survived to the economic recession.

If before a competitive mortgage offer carried a differential well below 1 percent, now the entities establish differentials ranging from 2 to 4 percent.

The 40 years of maximum life have been transformed in 25 or 30 years in exceptional cases and as for the amount of the loan the usual, if it is a first dwelling, is that it does not exceed 70 or 80 percent.

Crash in the concession

The hand is only open if the customer wants to acquire one of the hundreds of thousands of properties that the bank has in the portfolio and is content to sell, as is the market, with the least possible loss.

In that case, the conditions are almost identical to when more than 800,000 homes were sold per year in Spain, for 320,000 operations last year.

With banking-hardened conditions, lower demand and falling floor prices, the amount of the annual housing loan has collapsed to 37.5 billion euros in 2011, barely a quarter of the 2007.

Rate of interest APR of the new mortgages

there is some forecast that forecasts an increase in the next months, but rather the opposite. All measures, national and international, which aim to, or as an excuse, the reestablishment of credit to companies and families will not achieve its goal, according to experts and the financial sector itself.

Problems with regulation

First, the changing regulation establishes higher levels of capital for financial institutions. The Basel Committee and the EBA at the international level. In Spain, first the decree promoted by Elena Salgado, and the most recent, the reform of Luis de Guindos.

The latter, like that of Salgado, has among its main objectives to facilitate the opening of credit. However, the requirement of an extra capital mattress, which should reach 20 percent of the land exposure and 15 percent of real estate developments, will require entities to reinforce some 15 billion euros, a requirement that hinders the granting of new credits, by the consumption of own resources that causes its concession.

In addition, if the bank should make provisions collection it will have fewer resources than to allocate to the loans. The endowment effort stands at another 37,000 million, with the aim of covering any losses due to its exposure to brick

Tighter and more costly regulation punishes the flow of credit, which is blocked, in the opinion of the banks, due to a lack of solvent demand and economic recession. That is, until there is a recovery of activity loans will not increase. And when this happens - which in the best of cases will be in 2013 - mortgages will not be as before the crisis or during the crisis.

Goodbye to Euribor?

First because the interest rate, predictably, will not depend on the euribor. Financial institutions consider that this index does not reflect well the cost of money so that the sector can grant mortgages. With the distrust between banks at highs, this indicator has ceased to be the reference of the interest that some institutions lend themselves to others, and has become an artificial indicator, in the opinion of the sector.

For several months now, the bank has been looking for a more reliable and predictable indicator for its customers with the regulator. Some have begun to replace the Euribor with the IPRH, which is the average rate of mortgage loans for more than three years for the acquisition of free housing by the group of entities, which is around 4 percent. At present the euribor, which has been used since the creation of the euro, is below 1.5 percent after the collapse of recent years.

Payment in payment

Another element that will raise mortgage costs are the changes introduced by the Code of Good Practices, which has been adhered to the entire sector as a whole.

The introduction of the payment into payment, if certain requirements are met, will force the entities to be more demanding with the conditions for the granting of these credits. If risk scales indicate that the client is likely to fall into insolvency in the future, the concession, if it occurs, will be made for less money and, presumably, with a higher spread.

If mortgages have changed now, forced by the economic recession, shortage of liquidity, the outbreak of the housing crisis and the process of deleveraging families, when you think of the business model that will impose itself in the future, the sector discards that return the conditions prior to 2007.

Then, in the midst of an abundance of funds, with an expansive process of construction and economy generating employment and growing at 4 per cent per annum, institutions, in measuring risk, gave a key importance to the value of loan guarantees.

This is one of the practices that have proven to be erroneous as the crisis progresses, with the deterioration of the client's economic situation and the devaluation of the property.

Roberto Higuera, vice president of Banco Popular, explained this change a few days ago. The veteran manager affirmed that it is necessary to return to the good banking practices, although this supposes an increase in the price of the credits. "Loans must be based on repayment capacity, not on the valuation of collateral."

The cost of the loan, more expensive

The consequence is clear: the new approach will increase the cost of the loan. "This is not going to please customers, because it will mean giving loans at more expensive prices. It was exaggerated to give credits to euríbor plus 0.2 percent," said Higuera.

Banking, in effect, applied a very low differential, since the war for customer acquisition, unlike now, focused on assets and mortgages in particular. Thus, the mortgage itself, for the small margin, left hardly any benefit for the bank. This came from linking the client when closing the loan: payroll, insurance, domiciliation

How much have the floors gone down?

Annual variation of housing prices in Spain, by percentages

Mortgages of the Future

By Unknown 22:47 Mortgages of the Future

Mortgages of the Future A company whose brand is "Futur Finances," the "Future of Finance," should be able to explain its vision of the mortgages of the future. Obviously nobody is able to predict the future, but it is possible to try to approximate the future of the mortgage market closer to the current information available.

On the other hand Futur Finances was constituted with this name by two basic reasons:

The idea that in order to take out a mortgage loan you have to look to the future, not just the past or the present, since it is a family commitment for decades.
The determined will to be a modern mortgage broker, professional and effective. In short, the mortgage broker of the future, the financial agent that deserves the client. A few years ago say that it was better to go to an independent professional than to a bank to choose the mortgage seemed interested. Today, few would hesitate, at least to get adequate information. Therefore, in addition to offering online mortgage processing through our collaborators, we have been sending mortgage information for many years in traditional and online media.
How will mortgages be in the future?
At present there is hardly a mortgage offer in conditions, if you do not have a fairly good economic profile; you have to have savings for expenses and a good part of the purchase price (many financial institutions require at least 30% savings), in addition to an indefinite contract or be an official, in sectors that do not notice the economic crisis in a marked way . And often also have to provide double guarantees to mortgage or very reliable guarantors. Of course it is prudent not to go back to the times of runaway loans, but at the moment the financing is too scarce and expensive.

Therefore, to put ourselves in a plausible mortgage future, we can not expect the situation to stay that way. We are facing a credit crunch moment, in which there is neither mortgage offer nor solvent demand (people do not want or can not buy houses).

Let us imagine that in a few years the capacity to finance investments and expenditure of individuals and companies returns to normal. Banks are sanitized and those that do not get settled in an orderly way (guaranteeing part of the savings of the clients based on their nature).

At this time, the market again offers competitive mortgages and customers begin to see their economic future in a positive way, with more or less well-paid and relatively stable jobs.

The first thing that will change is how to assess the risk of the files; the reason is that the absolute stability in terms of customer income has died; fewer and fewer permanent employees; and this trend is likely to continue in the future. Collectives now barely served, such as mortgages for self-employed and entrepreneurs, will become an interesting type of client for the bank.

On the other hand it is foreseeable that an important level of savings is required, at least to pay the expenses of the operation. However we will have to wait to analyze the type of future economy, to see if the middle classes are able to save enough. At the end of the day, the bank can demand what it wants, but if the clients do not comply, it will have no choice but to adapt. What is clear is that more guarantees will be required than current ones.

Mortgage referrals will change, disappearing the Euribor or IRPH of entities and imposing others less manipulative and better reflect the cost of money, such as mortgage IRS.

It would not be unreasonable to attend a generalization of the dation in payment; the banks that include it in their mortgage deeds will win the rest. In the end, if they already demand additional savings and guarantees, the risk of accepting payment in payment is much lower.

As for the price to be paid for the mortgage, it will definitely mark the income level of the families. If it is estimated that a maximum of 40% of net income can be paid as a mortgage payment, the maximum fee will be. The price of housing will drop enough to make the financial burden the same. Mortgages have limited their cost: the one that the client can pay.

It is even possible that in the future there are crowdfunding mortgages for individuals, as fintech experts explain.

At Futur Finances we work to make your mortgage to the best possible future.

Details and requirements for accessing 30-year mortgage loans

By Unknown 22:40 Details and requirements for accessing 30-year mortgage loans

Details and requirements for accessing 30-year mortgage loans

The Province, City and Nation banks announced that they will offer new lines of mortgage loans to 30 years of term, adjustable for inflation and with quotas that, for every million pesos granted, will be similar to the values of a rental. The credits for the purchase of housing can be canceled within a period of up to 30 years: 360 installments that will be adjusted through the Unit of Purchase Value (UVA), and this will evolve according to the Consumer Price Index.

Public banks will finance between 75 and 85% of the value of real estate, up to $ 3,100,000 in the case of Banco Nación; while in the line of the City Bank the value of the housing will not have ceiling and will lend up to $ 2,000,000 for acquisition of new or used homes, and the Province Bank $ 2,700,000. They can obtain a credit for one million pesos family groups with incomes of between 18,500 and 24 thousand pesos, respecting a quota-income ratio that will oscillate between 25 and 30%. That is, with the extension of the payment deadlines the credits will be viable for sectors that until now could not access.

The fees and the amount of the fees will also vary according to the entity. Banco Nación will apply an interest rate of 3.5% for its clients and 4.5% for those who are not, and it is estimated that the monthly fee will range from $ 4,600 to $ 5,000 for each million pesos granted.

In the case of Banco Provincia, the quota for each million pesos will be about $ 5,931 for those who collect assets in the institution with a differential rate of 5.9% and a rate of 7.5% for those who do not. At Banco Ciudad, with a rate of 5.9%, beneficiaries will pay a fee of approximately $ 5,993. The City Bank will have the information available to applicants from Monday, while Nation and Province will do so in the coming weeks.

The general requirements for accessing the three lines of credit are:

• Employees must present permanent income with at least 3 pay stubs.

• The self-employed must show the proof of registration before the AFIP and the last 3 proofs of payment. Certification of net income extended by public accountant with signature legalized by the Professional Council of Economic Sciences and the last 3 payments of Gross Income or proof of exemption.

• The monotributistas must present proof of inscription, last 3 vouchers of payment and registration to the day, for the professionals, or municipal authorization for the merchants.

• In all three banks, the maximum amount of credit will be calculated on the basis that the resulting fee does not exceed a certain percentage of the income shown.

• The lines will grant a maximum term of 30 years, with a ceiling of around $ 3,100,000.

5 Questions to find the IDEAL Mortgage Loan!

By Unknown 22:34 5 Questions to find the IDEAL Mortgage Loan!

5 Questions to find the IDEAL Mortgage Loan!
Mortgage Loans Finding the Ideal Mortgage Loan: Buying a home is a great financial commitment and finding the right mortgage can be a confusing and frustrating process; especially for those who are buying a home for the first time. The key to getting the best deal for a home loan is comparison. It is essential that you talk to several lenders and financial institutions about the processes, requirements and the alternatives they offer with the conditions of each loan. But what should you keep in mind when evaluating a mortgage loan? The following are important questions to ask yourself when deciding which mortgage is right for you.

Which one suits me more, a fixed rate mortgage or adjustable?
Mortgages generally have two classifications: fixed or adjustable rate. Fixed rate mortgages block the borrower at a constant interest rate that the property owner is going to pay in the course of the loan. This means that the part of the monthly mortgage payment that is allotted to the principal (mortgage amount without interest, insurance, etc.) and the loan interest rate, remain constant throughout the term of the loan; although some taxes and other costs could fluctuate.

The interest charged on an adjustable rate mortgage fluctuates over the life of the loan. It usually starts with an introductory period of ten, seven, five or even a year, where the loan rate is locked (does not change). After that period, rate changes are based on a standardized index, such as the preferential interest rate. This is the interest rate index used by banks and lending institutions as a base rate to calculate or measure adjustable rate loan products. Home equity loans and credit card rates can be tied to the prime rate. This rate is induced by the monetary policy adopted by the monetary authorities of the state to promote the dynamization of the economy. Many people are attracted to these types of mortgage products, since they usually offer much lower introductory rates than those of a fixed rate mortgage loan; but you should consider whether you will be comfortable with the possibility that your monthly mortgage payments will rise significantly in the future.

The rates of mortgage loans are always marked by financial market trends and are adjusted according to the needs of the Financial Institutions. Look closely at this clause where it gives the bank the freedom to raise or lower that rate and make a decision based on their particular interests in acquiring the property and the mortgage loan.

Can I and should I pay the capital?
Certain Financial Institutions allow you to make extraordinary payments to the capital to lower the interest rate and therefore, your monthly payments will fall. In some cases, a lender will offer you the option to pay principal (principal) along with your closing costs. If you leave the same monthly installment, the term (term of the loan: 5, 10, 15, 30 years) drops immediately, but if the monthly fee falls, the term remains the same. Capital is usually paid to reduce the rate of fixed rate mortgages. This type of transaction makes sense if you plan to keep the loan for a long time and do not plan to sell in the near future; since the initial costs are higher and their closing costs soar. In short, you will have to dispose and pay more money at the time of closing, but this in the long run benefits you; since in the end the total cost of investment decreases. However, if you plan to resell the property in the near future, it is not worth it to spend so much money at the time of closing, because you will not see the real profit in the long run. If your bank proposes this option and you think it suits you, make sure that the amount paid is reduced from the amount owed, ask your bank for a statement of the loan so that you can verify it.

What are the closing costs (costs)?
Transfer tax 3% of the value of the property.
Mortgage registration 2% of the value of the loan.
Charges will depend on the location of the property, the type of property (apartment, commercial premises, property, etc.) and the value of the property.
Drafting of contracts and / or legal expenses, which could also depend on the type of mortgage and the amount.
Obligatory insurance of fire and misrepresentation. The latter is intended to cover debts contracted by the insured at the time of death and is a very useful tool for banks and financial institutions; Since of

Advantages and Disadvantages Reverse Mortgage

By Unknown 22:29 Advantages and Disadvantages Reverse Mortgage

Advantages and Disadvantages Reverse Mortgage

The advantages of reverse mortgages are:

It offers you security by obtaining an annuity as a supplement to the pension (provided you have contracted deferred income insurance). This mortgage loan allows you a greater well being able to pay your personal expenses, trips with the immersed, ...
It preserves the possession and ownership of your dwelling, being able to continue living in it, rent it and even transmit it by inheritance.
It has a better tax treatment whenever the property is the habitual residence, the monthly installments that the beneficiary receives do not tax.
At any time you can undo the transaction, returning to the financial institution the money borrowed until the day of cancellation. Most entities do not charge for canceling the mortgage in advance.
The public deeds that document the operations of incorporation, subrogation, modification novation and cancellation of the reverse mortgages are exempt from the gradual quota of notarial documents of the Transfer Tax Patrimonial and Documented Legal Acts.

And the disadvantages and disadvantages:

The client has to pay the appraisal costs of the house.
The contracting of this product requires a mortgage formalization expenses that are included as an initial provision charged to the loan: interest, opening commission, notary writing expenses, registration and management fees, miscellaneous taxes and the subscription of the deferred income insurance.
There are limitations in accessing this type of product: some entities do not accept farms below a considerable value or in locations where it is difficult or uneconomical to carry out the relevant procedures (for example, because there are no offices, problems to sell to third parties, etc.).
The share of reverse mortgages is not updated with the CPI, although formulas can be agreed to raise incomes that increase each year.
The risk that can psychologically cause older people to get rid of one of their main assets for which they have saved a lifetime, such as housing, despite maintaining ownership and possession of the property and transmit it to his heirs.

(0) Reply Rate this answer130
Anonymous on 14 June 2012
The Reverse Mortgage is a mortgage loan for people over 65 who own a home, through which the Financial Entities pay these people a monthly income, with the particularity that the Major Person does not have to pay back the amounts received or interest accrued, but the debt is postponed to the death of the contractor or the last of the beneficiaries, so it will be their heirs who must cancel the credit. All this while maintaining full ownership of the home. For the calculation of the monthly rent which in each case corresponds to the owners of a house, the age and sex of the contractor, and the value of the dwelling (determined by an official appraisal), as well as the technical and financial conditions applied by each Entity. The Reverse Mortgages can be contracted under the following modalities: Reverse Mortgage Lifetime: The Senior Person receives a monthly rent for his entire life. Temporary Reverse Mortgage: The Senior Person receives a monthly income for a certain number of years (established according to his age at the time of hiring). Capital Advances: In either of the two above modalities, the client may request to receive a Capital Advance as a first-time disposition. It is important for Seniors to hire him through Independent Advisors. In this sense GRUPO RETIRO does a free study on Reverse Mortgage, without any kind of commitment. For more information: GRUPO RETIRO 915774240

By Unknown 22:18

mortgage my car

A car title loan - also known as a pink-slip loan, or title pledge - is a low-rate, short-term, high-rate loan in which the free title is used of your vehicle as collateral. It is a very expensive form of credit. Some lenders offer loans on the title of a car if it has accumulated value in the vehicle, even if it does not have a title free of liens. These loans typically run for a period of 15 or 30 days and have a three-digit annual percentage rate (APR) - a much higher interest rate than those applied to most other forms of credit. Loans on a car's title deed usually range from 25 to 50 percent of the value of the car. The average amount of these loans is between $ 100 and $ 5,500. But some lenders may extend loans for $ 10,000 or more.

How these loans are applied for
Lenders who give credit on a car's title deed operate in public service and on the internet. Whether you apply for the loan in person or on the internet, you will be asked to complete a loan application. Consumers who wish to apply for the loan on the internet will be given a list of business premises that offer car title loans near their homes. To complete the transaction, you will need to present your car, the title free of charge, a personal identification with photograph and a proof of insurance. Many lenders also require the delivery of a duplicate set of car keys.

When you submit a loan application on the title of your car it is important that you:

Review the terms of the loan. Lenders who give credit on the title of a car must give you the terms of the loan in writing before you sign the loan agreement. Under the Truth in Loan Law applicable at the federal level car title loans have the same treatment as other types of credit: lenders must report the cost of the loan. Specifically, providers should inform you of the financial charge (expressed in dollars) and the annual percentage rate or APR (the cost of credit on an annual basis). The annual percentage rate (APR) is based on several factors, including the amount you borrow, the interest rate and credit costs that apply to you, and the length of your loan. In addition to the financial charge, car title loans may also include other expenses, such as processing fees, documentation fees, late payment charges, loan origination charges, title fees, and pledge charges. car.

Beware of those "extras" that can increase the cost of the loan. In addition to the costs of the loan, you may have to face the payment of additional costs such as a car help plan. The cost of the plan can be based on the value of the loan. If you are required to purchase additional, your value will be part of the APR / financial charge, which will further increase credit costs. In addition, the additives themselves can be costly - and can add considerable amounts to your loan.

Once the loan is approved, you receive the money and the lender receives the title of ownership of your car. You will not be able to recover the title of your car until you finish paying the loan.

Loans on the title of a car are expensive
On average, lenders typically apply 25 percent per month to fund the loan. This means an annual percentage rate of at least 300 percent. And depending on the additional charges that the lender may require, the rate could be even higher. For example, if you take a loan for $ 500 over a period of 30 days, you could on average pay $ 125 plus $ 500 of the original loan amount - $ 625 plus any additional charges - within 30 days of receipt of the loan.

Payment options
Generally, you have three payment options: in person, through an online system or through an automatic reimbursement system.

If you opt for an automatic refund plan, you must authorize the lender to debit your regular payments directly from your bank account or debit card on the due date of each payment. Providers can not make recurring automatic debits unless you agree in advance to make these transfers from your bank account - and they can do so only after giving you a clear information statement about the terms of the transaction. The provider must give you a copy of your authorization for

By Unknown 22:10

MORTGAGE MORTGAGE
Have you taken out a mortgage in yen or Swiss francs and now owe more money than when you hired it?
All those affected by having contracted a multi-currency mortgage have RIGHT to CLAIM against the bank in order to cancel the multi-currency clause in this mortgage, recalculate the loan as if a mortgage in euros had been contracted from the beginning and proceed to the return of the amounts overpaid.
Why do you have the right to CLAIM?
Because, as our courts say, the entities did not warn customers that this was a complex financial product not suitable for individuals and because the duty of information, transparency and diligence imposed by the famous MIFID Directive in force following the amendments introduced by Law No 47/2007 of 19 December, which transposed European Directive 2004/39 / EC.
What are your chances of getting your money back?
Many! Since from the recent sentence of the Supreme Court dated 06/30/2015, which in paragraph 7 of section 7, states:
"The Chamber considers that the" multi-currency mortgage "is, as a loan, a financial instrument. It is also a derivative financial instrument in that the quantification of the obligation of one of the parties to the contract (payment of loan repayment installments and calculation of the capital to be amortized) depends on the amount that reaches another value different, called underlying asset, which in this case is a foreign currency. As a derivative financial instrument related to currencies, it is included in the scope of the Securities Market Law in accordance with the provisions of art. 2.2 of that law. And it is a complex financial instrument under the provisions of art. 79.bis.8 of the Securities Market Law, in relation to art. 2.2 of said law. "
The majority of judges and courts are ruling in favor of consumers

By Unknown 22:07

By Unknown 22:01

What are Multi-Currency Mortgages?

Multi-currency mortgages are a product in which the customer contracts a mortgage in euros, but loan repayment installments and capital calculations are periodically calculated in currencies other than the euro; whether the yen, the Swiss francs or others.

The arguments put forward by financial institutions between 2006 and 2008 in our country to "put" them to the clientele, was that the Euribor was reaching very high values and that a constant in that operation was foreseen, financial institutions begin to market multi-currency mortgages, mentioning the advantages of reducing the interest rate without highlighting the risk of betting against the devaluation of the euro in the middle of the economic crisis.

In this way, everything that lower the euro against the currency chosen for that calculation, is a loss for which the mortgage contracted, being the case that today many people, having paid for many years of the quotas to the ones that were obliged, must in an amount superior to the one that received when contracting the mortgage.
multi-currency
How these procedures are currently resolved in the Courts

Faced with this abuse, the Spanish courts have ruled, considering that we are dealing with a derivative instrument to which the MiFID is applied, a European standard that protects the investor (very demanding in terms of prior information to be received by the affected party. things the Supreme Court, in a ruling of June 30, 2015, sets the basis for those affected by this type of mortgage to defend their interests and to request the nullity of the abusive effects of the same, based on the following:

That multi-currency mortgage is a complex financial instrument that requires a special duty of information to the client.
The customer profile is Retail and therefore must be protected as such.
That the Institution has violated national and community regulations, failing to comply with the duties of information and delivery of complete and accurate documentation on the operation, nature and risks of the operation. (including, it has violated the Stock Market Law, whose requirements regarding the information are superior).
The violation of the rules does not represent a mere administrative infraction by the financial institution, but supposes to declare null the multi-currency clause, due to the error in the consent caused to the client.
That an individual receiving his income and having his expenses in euros, and who lacks academic and financial training in relation to the foreign exchange market, would not consciously assume the possibility of more duty than he receives, and of being obliged to pay fees whose quantification can not know.
The consequence of this jurisprudence is that we are not dealing with a product for retailers, and that in a large number of cases, if not in almost all cases, the non-compliance of the banking entities; of information and evaluation to the client, supposes that the will and consent of the contractors was flawed.

In other words, if you have a multi-currency, and you are not an expert, nor informed or evaluated properly, in accordance with the Securities Market Law and the European law, which is mandatory law, your bank may be ordered to repay the amounts overcharged, having been calculated in other currencies and not in euros, without having to repay the loan in advance, declaring the partial nullity of the contract without affecting the loan itself, which would remain as if it had been granted in euros.

The judges are giving reason to the people in front of the banks declaring the partial nullity of the deeds and the refund of the excess paid.
Free Feasibility Report

Based on the documentation provided by the client, we prepared a study conducted by our lawyers and economists, which allows us to know the feasibility of your case, to check what arguments we have to get the nullity of multi-currency mortgage. This exam is free.

After completing the report, if you wish to contract the claim. We inform you that the hiring would be without advance amounts on account to the office as attorney's fees until the end of the file.

Routes of Claim:

Extrajudicial Way. Negotiation with the bank in order to obtain the elimination of the mortgage multi-currency of your mortgage loan, and if appropriate, the amounts unduly paid.
Judicial Highway. Interposition of Individual Civil Demand until final sentence. You will not have to pay amounts on attorney's fees because we charge in this case, against results, to success. This action is aimed at the cancellation of the multi-currency clause of your mortgage loan with all the consequences of the recalculation to euro

By Unknown 21:54

mortgage loans: what are the requirements, amounts, terms and quotas

The first two months of 2017 demonstrated a take-off of mortgage credit that had not been observed since the mid-1990s, when its last expansion took place. According to data from the Central Bank of Argentina (BCRA) at the end of February, total mortgage loans amounted to approximately $ 65 billion, compared to more than one billion pesos ($ 1,108,798,000,000) of total loans of the financial system, and only represent 6.5% of the total.

One of the novelties is that for the first time in Argentina coexist in the system four varieties of mortgage loans. The majority of the banks grant indexed by UVA (Acquisition Value Unit) while other banks, such as HSBC, grant the traditional fixed rate. Banco Nación credits indexed by CVS (Salary Variation Coefficient) and Banco Hipotecario together with some private and public offer Procrear, which will be modified in the coming days.

In a video made by the BCRA, step by step explains the mortgage loan UVA to buy a home: how the value is updated and what is the initial fee, which is always maintained as a stable portion of the income of the applicant .

For example, a loan of $ 1 million to 15 years is granted with an initial fee of $ 20,000 for a traditional loan, while with the UVA, the first installment is around 8,000 pesos. And it is estimated that this monthly payment may fall even more in the city of Buenos Aires. It is that after passing through the Buenosairean Legislature, the Government of the City regulated the decrease of Gross Revenue in the quotas.

The Government has the objective of delivering 10,000 mortgage loans per month between public and private banks
Martín Mura, Buenosairean Minister of Finance, estimated that the fixing of a differential rate of 1.5% for mortgages granted by financial institutions, instead of the 7% that hitherto governed, would imply a reduction of the loan quota of 10 % to 15%, according to the term.

The Government has a clear target number. While the government delivered 2,000 loans per month on average in the last three months, in a year it seeks to raise that figure to 10,000 between the public and private banks, with an average loan of 1 million pesos.

Mortgage loans adjusted for inflation are not the only element related to this unit, since the market also offers fixed periods in UVA with a minimum term of 180 days.

How a Mortgage Works

By Unknown 21:41

How a Mortgage Works

When deciding to buy a house or apartment, many people are wondering how a mortgage works, what steps are necessary to formalize it and to choose the best option, as this is the financial tool that most people use to form heritage.

The conditions of the mortgages are negotiable and nothing prevents asking for offers in several financial institutions to choose the best. It is a mistake to keep the mortgage offered by our usual bank without consulting other offers. It is essential to compare the mortgages and look for the best possible conditions, as this can represent a good saving of money or acquire a better property.

It should be taken into account that the mortgage loan also includes other important expenses, such as the fees charged by the financial institution, insurance and notary expenses.

The basic questions are: the interest rate to be applied, the term, the commissions and the possible penalties.

What is a Mortgage?

Also known as mortgages; is a loan that makes you a financial institution, with a cost (interest) and a certain term. Monthly during that term, established in a contract, you must pay the agreed amount.

The property you are buying is "mortgaged", that is, as a guarantee that you will meet your payment in time and form, hence the importance of requesting a credit appropriate to your profile, not jeopardizing your finances and the assets of your family.

At the end of the payment of your credit is processed the freedom of lien, a document that confirms that no bank is due to Sofol, that the house is no longer mortgaged and that is yours.

Mortgage loans can be used for different purposes related to real estate such as the purchase of new or used house, department, land, construction, remodeling, extension or completion of work.

How is processed

Go to request it with a mortgage professional or to the branch of the bank or Sofol that you prefer. This first approach should serve to clear doubts about the process of granting credit, to know in detail the mortgage product that you chose and corroborate that it is the one that is best for you.

Usually, if you meet all the requirements, it may take 4 to 5 weeks for the signature of your credit and purchase before the Notary Public.

Rights and obligations

When you acquire a mortgage, you sign a home loan agreement with mortgage guarantee, where the rights and obligations for both parties are established.

You, you agree to pay an agreed amount monthly, within the established time and place.

For its part, the bank or Sofol assumes the commitment to respect the terms and conditions of the credit embodied in the contract.

Remember that your property remains as a guarantee of the loan, therefore the institution has the right to claim the property if you do not pay as agreed.

What happens if you stop paying

The general policy of institutions on the issue of delinquency works like this:

From the first month of arrears, in addition to the credit's own interests, interest is incurred in arrears, which are between 1.5 and 2 times higher than your credit.

If the non-payment of the monthly payments exceeds three months, most institutions will freeze the interest rate, in case of a credit with a decreasing rate, and you continue to accumulate interest arrears.

After three months, an adjudication trial is likely to begin, where the bank will claim the property as a guarantee of default.

We know that we are all exposed to unforeseen circumstances, so we recommend that, if at any time you have an eventuality that will affect the payment of your mortgage, you go immediately to the institution to raise the problem and listen to their alternatives.

Share this link: http://www.metroscubicos.com/shrt/0zvgWi
"The opinions expressed in articles and comments are the responsibility of their authors."
"Cubic Meters respects the plurality of ideas and comments, as long as they are not discriminatory or harmful to the identity, race, condition or dignity of persons."

By Unknown 21:32

Types of Mortgages
When choosing the type of mortgage loan to buy a home, you should also take into account how much income will be received over a long period, for example:
* If you think that income will increase over time for job improvements, it would be advisable to take a loan where you make small payments at the beginning and then they can grow.

* If you think that the income is going to stay the same or could even go down, it is best to secure a loan with payments that will not go up over time and be certain in interest rates.

* Another important aspect is to define whether the condition of the work is entitled to a credit of those granted by INFONAVIT or FOVISSSTE for workers who are listed on the IMSS or ISSSTE.
Labor rights allow a credit of these institutions and in many cases are cheaper credits than those of any intermediary operating in the market.

By Unknown 21:27

What is a mortgage loan and when to use it?
What is a mortgage?
When you want to buy a house that has a very high value, and you do not have the money to pay it in cash; a mortgage loan represents an opportunity to acquire it, without having to bring a large sum of money at once.

A mortgage loan is a loan that is made in the long term, which is backed by the mortgage of the house that is purchased. If you intend to apply for a mortgage loan, you must first analyze if you are in a position to have one, to know, answer the following questions:

From my normal expenses, how much can I save to pay off a loan?
Am I constant in my savings?
Do I have any other credit I'm paying?
Have not I failed on my payments?

When should a mortgage be used?

The purchase of a mortgage loan should not become a great burden that prevents us from paying the most necessary expenses, therefore, the payments that we must make of a loan should not represent more than a percentage that we define (perhaps 25% or 30% ), because we must take into account that when contracting the credit, means to commit to pay that amount for many years. Therefore, credit should be taken alone:

When we do not have enough money to buy the house.
When it does not represent a heavy burden of our salary.

By Unknown 21:19

Mortgage loan

One of the most common cases in which Excel spreadsheets are personal are mortgage loans. This is because Excel templates are one of our great allies for organizing and collecting information. The advantages of Excel are abundant especially thanks to the different functions of Excel that help us to simplify our tasks in a useful and simple way.

How to create an amortization table for loan in Excel
Through the Excel template for mortgage loan we have the opportunity to efficiently calculate our installments and payments using an amortization table that collects all the data. Thus, the mortgage spreadsheet should compile the following points:

Payment periods.
Fees and interest payments.
Accumulated amortization.
Capital pending.
Amount of the cancellation fee.
Cancellation fee.
We must also take into account other factors related to the interest rate or any other fixed expenses. In addition, if you wish you can also benefit from the Excel template for home accounting so you can extract all the cats you make throughout the year and above all to save on your personal finances as much as possible.

Free Mortgage Template in Excel
Below you will find available a mortgage loan model in Excel so you can customize it based on your needs. Do not wait any longer and make the most of this free spreadsheet with which you can control your payment periods and start simulating your loan from the repayment chart in few steps.

By Unknown 21:12

What is a mortgage ?

A mortgage is an agreement between you and the lender that gives the lender the right to take your property if you do not pay the money you have borrowed plus the interest. Mortgage loans are used to buy a home or to borrow money on the value of a home you already own.
Tip: Seven Things to Look for in a Mortgage:

The loan amount
The interest rate and the associated points
Borrowing costs, including commissions from the lender
The effective annual rate (APR)
The type of interest rate and whether it can change (is it fixed or adjustable?)
The term of the loan, or the time it takes to repay the loan
If the loan has other risk characteristics, such as a prepayment penalty, final global payment clause, interest-only or negative amortization
Tip: Focus on a mortgage that you can afford, taking into account your other priorities, not the amount of money for which you can qualify. Lenders will tell you how much you can borrow, that is, how much you are willing to lend. Several online calculators will compare your income and debts and come up with similar answers. But the amount you can borrow is very different from the amount you can pay without expanding your budget by weakening other important issues. Lenders do not take into account all your family and economic circumstances. To know how much you can afford, you'll need to look closely at family income, expenses, and savings priorities to see what fits your budget.

Tip: Do not forget other costs when proposing the ideal payment. Costs such as homeowners insurance, property taxes and private mortgage insurance are usually added to your monthly mortgage payment, so do not forget to include these costs in the calculation of the amount you can afford. You can get the estimates with your local tax assessor, the insurance agent and the lender. Knowing how much you can afford comfortably each month will also help you calculate a reasonable price range for your new home.

By Unknown 10:19

Millennials Guide: Choosing the Right Mortgage

As you prepare to buy a home, you are probably trapped in the excitement of a kaleidoscope of options: top fixer or turnkey? Small condo in the heart of town or extended house in the suburbs? Traditional or contemporary? Brick or stucco? Fixed Rate Mortgage or Adjustable Rate?

OK, so maybe that last one is not exactly exhilarating. As boring as it may be, however, it is a question that you are going to have to ask yourself - and respond - at some point during the home buying process. What type of mortgage should you choose? Believe it or not, your decision could make or break your home investment (see Getting a Mortgage in Your 20s).

The good news: You are not alone in your quest to get the perfect mortgage. For the second consecutive year, Millennials represented the largest group of home buyers in the United States (32%), according to a March 2015 study by the National Association of Realtors. As members of this generation continue to flood the real estate market, they are instigating some major changes in the mortgage industry. A 2014 Pew Research Center report found that Millennium Mortgage borrowers are demanding a technology-based home loan application process, fast online service, and faster mortgage closing.

Advertiser Disclosure
But before closing in your new home, you will have to do some mortgage tasks. Here is information on the major types of mortgages to help you make this critical decision.

FHA Loans
Housing loans offered by the Federal Housing Administration (FHA), known as FHA loans, are designed for home buyers who do not have a lot of money to put toward a down payment - which is why lending the FHA are so appealing to Milllennials.

With an FHA loan, however, you are only required to make a 3% down payment, all of which may come from a gift or a donation. That means it is possible to secure an FHA loan without putting down a single dollar of your own money. Also, the underwriting requirements are not as strict with these loans. In other words, if your credit history is not exactly perfect, an FHA loan could be your best bet.

By Unknown 10:00

Choosing the right mortgage can help buyers avoid costly mistakes.

Fixed rate loans charge a fixed interest rate that does not change over time. The balance of principal and interest paid each month varies, but the general payments remain the same, which helps budget owners. Borrowers are protected from interest rate increases, but when rates are high, it is more difficult to qualify for a loan because the payments are less affordable.

Adjustable rate loans have interest rates that vary over time. The initial rate is below the market rate, and then rises. ARMs typically maintain the initial rate for anywhere from a month to 10 years. But if it is kept long enough, the ARM will eventually exceed the current fixed rate loan rate.

The arms offer low initial payments. They let the borrower qualify for a larger loan, and let the borrower enjoy lower interest rates in a falling rate environment.

To choose the right one for you, consider these questions:

1 / How big of a mortgage payment can you afford today?
2 / Could you still afford an ARM if interest rates go up?
3 / How long do you intend to live on the property?
4 / Are interest rates going up or down, and do you expect that trend to continue?

An ARM may be right for you if low payments in the short term are important, and you do not plan to live on the property for long. If interest rates are expected to fall, an ARM guarantees you will enjoy lower rates without having to refinance. But if you want a predictable payment, or interest rates are rising, a fixed loan is better.

By Unknown 9:45

1. Mortgage vs. Adjustable rate

Conventional or fixed rate mortgage - The loan rate does not fluctuate with changes in interest rates. It tends to present higher rates than adjustable rate mortgages. 30 and 15 years more common.
Adjustable Rate Mortgage (ARM)
Allows adjustments Of the interest rate of the loan at regular intervals. Also known as a "variable rate mortgage" or a "floating rate mortgage".
Components of an Adjustable Rate Mortgage:
Initial rate: the initial rate charged on an ARM for a specified period, anywhere from three months to 10 years. The shorter the period, the lower the initial rate.
Interest Rate Index - An index used to calculate the rate of ARMs that is independent of the lender. As the index decreases or increases, the ARM does the same. Some common indices include 6-month or 12-month US Treasury bond rates or the Preferred Rate.
Margin - The number of percentage points added to an index rate to determine the current ARM rate.

For example, if the index rate is 5% and the margin is 2%, then the ARM rate is 7%.
Setting interval - How often the ARM frequency will be reset. The one-year adjustment interval is more common.
Rate Cap - Limits how much an ARM rate can change. The periodic cap limits how much a rate can change over a given setting interval. The lifetime cap limits the total rate adjustment over the life of a loan.
Payment Cap - Sets a dollar limit on how much a monthly payment can increase. This limits the change in the monthly payment of the mortgage but does not limit the interest rate charged. When rates are rising, less of the payment goes towards the principal and more towards the interest.
Negative amortization - A situation in which monthly payments are not sufficient to cover interest due on the loan. The unpaid interest is then added to the loan balance, which means that the borrower's balance grows each month instead of decreasing.

By Unknown 9:37

Adjustable rate mortgages can save borrowers a lot of money in short and medium term interest rates. But if you are holding one when it is time for the interest rate to reset, you may face a much higher monthly mortgage account. That is fine if you can afford it, but if you are like the vast majority of Americans, an increase in the amount you pay each month is going to be difficult to swallow. Consider this: the adjustable rate mortgage adjustment during the financial crisis was partly the reason why many people were forced into foreclosure or to sell their home in short sales. Post the merger of housing, a lot of financial planners place adjustable rate mortgages in the risk category. While the ARM has gotten a bum rap, it is not a bad mortgage product in itself,

Changes in the interest rate with an ARM
In order to get an understanding of what is in store for you with an adjustable rate mortgage or ARM, you first have to understand how the product works. (See also: "Mortgages: Fixed rate versus adjustable rate.") With an adjustable rate mortgage, borrowers lock in an interest rate, usually a low one, over a certain period of time; Subsequently, when that period of time has expired, the mortgage interest rate is restored to whatever the prevailing interest rate is. Variable rate mortgages generally vary in lengths from one month to five years or more. For some of the ARM products, the initial rate that a borrower pays and the amount of the payment can change substantially compared to what is paid later on in the loan. Because the low initial interest rate may be attractive to borrowers, particularly those who do not plan to stay in their homes for a long time or are sufficiently informed to refinance if interest rates rise. In recent years, with interest rates fluctuating at record lows, borrowers who had an adjustable or adjustable rate mortgage reset saw no big jump in their monthly payments. (See also: "Top 6 Mortgage Mistakes.") But that could change if the Federal Reserve moves to raise rates next year.

Know Your Adjustment Period In order to determine if an adjustable rate mortgage or ARM is a good fit, borrowers need to understand what the adjustment period is and what it means for their particular loans. In essence, the adjustment period is the period between changes in interest rates. Let's say the adjustable rate mortgage has a one-year adjustment period. The mortgage product would be called a 1 year ARM, and the interest rate and therefore the monthly mortgage payment would change once every year. If the adjustment period is three years then a 3-year ARM is called, and the rate will change every three years. There are some hybrid products out there like the ARM 5/1 year which gives you a fixed rate for the first five years and then the interest rates are adjusted once a year for each year after that

By Unknown 19:45

Mortgage Loan Basics

Real estate is seldom bought in cash. The vast majority are bought with a little down payment and mortgage loans on the balance.

A mortgage loan is a form of secured financing; That is, the lender gives you the necessary financing and in return promises you the property as collateral.

In a mortgage loan, there are two very important documents that you commit to:

Note - it is a promise to repay the loan in a timely manner
Mortgage or deed of trust - is a promise to insure the loan with the real estate in question in case the borrower does not meet their loan obligations.
A mortgage creates a lien on the property, which gives the lender the right to exclude the property in question.

A loan default occurs when you can not repay the loan "on time" as stipulated in the contract. If that happens, the lender can exclude the mortgage and take over the property.

Interest rate and loan term

A home loan has two very important components that you need to know.

Interest rate - is the price of using the money of the lender and is applied to the balance of the principal. A lower interest rate means a cheaper use of the lender's money and should be good for you.
A term of the loan - the time it takes to pay the total amount borrowed. The term of the loan usually extends for a number of years.
These two factors mainly affect installment payments, which is usually on a monthly basis.

The amount shown on the monthly installment plan always remains constant. When you pay a loan, one portion goes to interest payment and another portion is going to pay the principal amount. In other words, the principal balance is reduced with every payment you make. And as a consequence, interest also shrinks as the loan matures. The first installments are mainly intended for interest payments, while subsequent installments mainly cover capital.

Payment and mortgage

Most lenders will not grant you a loan that is equivalent to the sale price of the property. In many cases, you will have to evaluate the property and you will be asked to place a down payment and loan the remaining balance of the appraised value.

The down payment is sometimes referred to as equity in the property.

The standard down payment is 20% of the appraised value of the property; 80% is your loan or the amount financed.

The more money you put as down payment, the lower your loan will be. And always remember that the loan has an interest.

Now comes the question: Which is better of the two?

A low payment and a big loan.
A big down payment and a small loan.
There are arguments that favor one over the other. It all depends on you and your circumstances. But sometimes, the lender will force you to take lower loans (with large down payment) to reduce your risk of lending you the money to finance your real estate purchase. That's pure business.

Mortgage loan

Depending on the property and where you are buying, Fund can give you a large amount of loan that is almost equal to the selling price of the property. But always take into account the maximum amount of the loan that the Pag-IBIG Fund can grant you. If you find the amount too small for the property you are considering, you may have to come up with a large down payment or you can use an alternative financial institution.

By Unknown 11:20

jumbo loan these days? Think again. Power couple Jay-Z and Beyoncé somehow managed to get $ 52.8 million-dollar mortgage from the bank to finance their home in Los Angeles. For the LA Times, the pair purchased the $ 88 million-dollar property in the Bel Air neighborhood via blind trusts and came in with a 40% down payment. That's 60% LTV, which seems like a good amount of skin in the game. Largest Mortgage Ever? I'm not sure what constituted the largest mortgage ever, but $ 52.8 million is probably way up there. To put it in perspective, a $ 52,800,000 loan amount on a 30-year fixed set at 4% equates to a monthly payment of $ 252,075.28. Yes, more than a quarter-million a month. As the Times pointed out, the monthly payment alone is nearly half the average sales price ($ 610,000) of a single-family home in Los Angeles. The monthly payment also happens to be $ 50,000 more than the median home value in the United States. The good news is the sprawling two-acre estate including four swimming pools, a spa, full-size basketball court, and a wellness center. It's also 30,000 square feet, so there's plenty of room for the in-laws. Why Did They Take Out a Mortgage?

Now you might be wondering why the couple would like to take a mortgage? After all, they're apparently worth over a billion dollars combined. Could not they just pay for the place in cash and save a ton of money on interest? Heck, the first monthly mortgage payment consists of $ 176,000.00 in interest, with just over $ 76,000 of the payment going toward the main balance. Over the full 30 years, they'll pay an astronomical $ 37,947,100.80 in interest, and chances are they will not be able to take advantage of the mortgage interest deduction. So why pay almost $ 38 million dollars in interest? Well, like other mega-rich people, they probably understand that their money is better spent, or invested, elsewhere. [See the latest mortgage rates from dozens of lenders, updated daily.] While they could save a lot of money on interest, they might have bigger and better plans for their money. All they have to do is beat a return of 4%, assuming that's really their mortgage rate. With the right financial advisor by their side, they can probably eke out a better return and come out way ahead. If you recall, even Warren Buffett has a mortgage on one of his homes. Instead of paying all-cash, he was buying shares of his own company when it was dirt cheap. Those shares went from about $ 40 to around $ 268,000 per share today. Sounds like I made the right choice. Lately, Buffett has been outspoken about the great opportunity to take on the mortgage, especially a long-term fixed-rate mortgage. And he might have a good point. If rates rise and inflation takes hold, those monthly housing payments will feel really cheap in the future.

More Million-Dollar Zip Codes Now Than During Housing Peak

One last item. Per Zillow, there are now more million-dollar zip codes than during the housing market top back in 2007.

If more than 10% of properties in a given ZIP code were valued at $1 million or more, Zillow identified it as a “million-dollar area for the year.”

The latest research indicated that one in 25 ZIP codes nationwide held that distinction. In San Francisco and San Jose, 74% and 77% of ZIP codes were million-dollar ones, respectively.

Of course, factor in inflation and we have real home prices, as opposed to nominal ones. That means $1,000,000 today might have only been worth around $850,000 a decade ago.

Either way, real home prices are clearly on the rise with no obvious end in sight.

However, Zillow noted that there’s a 52% probability of a recession starting by the end of 2019, based on a survey of 102 real estate economists and experts. It rises to 73% by the end of 2020.

Interestingly, it won’t be the mortgages that are the problem this time – instead, a geopolitical crisis. Yikes.

More Million-Dollar Zip Codes Now Than During Housing Peak

Social Profiles