Private capital mortgages and reasons to use them
November 5, 2018
That private capital mortgages continue to grow in our country is something no one doubts.
Whereas before it was seen as a distant financing option for most people today it is no longer seen in the same way.
Undoubtedly, the reduction in financing to levels never seen before has helped in all this.
Because the cost that we currently see in private mortgage loans has nothing to do with the one seen just 10 years ago.
As the years have passed, private mortgages have been reducing interest rates.
Today, for example, it is usual to sign these mortgages at interest rates that do not represent 12% per year.
And before I believe when I tell you that it was not, investors and other private lenders used to demand higher conditions.
It also has much to do with the increase in competition that has occurred in recent years, although the main reason is changes by law.
Private capital mortgages How to make responsible use of them?
If you want to make good use of these mortgage loans we will show you below some of the options you have.
Private mortgages to make a group of loans: It is a strong reason to process a mortgage of this type on any other loan.
The advantage of these mortgage loans is that when the client has a delicate situation such as high debt does not have to be a problem.
As well as the banking entities if they take into account the level of debt of the applicant of financing does not pass the same in these other credits.
Through the signature of mortgages clients what they do is to group all the debts they have in one.
However, in order for the private capital mortgage signature to make sense, the new financing must have better conditions than what it intends to cancel.
Or at least that in the end in the payment of the quota all this supposes a saving.
Not only must we take into account interest rates on loans, other variables such as terms or even the possibility of a shortage must also be assessed.
Another reason to process this type of mortgage loan would be to cancel unpaid debts.
In fact, when the person who asks for the money is in some list such as the loan or he needs to cancel debts, it is one of the loans that are always recommended.
And it is normal, currently it is one of the few loans that can be processed in situations like these, but this is not a problem.
Through a bank or by consumer finance, all this becomes a problem, but not in private equity companies .
Private mortgages are also often used to sign fast money.
That is to say, when the person what needs is financing at the moment the option of the loans with endorsement of property is usually interesting.
And all despite the speed of processing is no longer the same as the view a few years ago.
Years ago signing one of these mortgages of private capital was done in two days, today instead around a week.