Mortgage: All you Need to Know

Mortgage, also known as "home equity loan," or "real estate refinancing," consists of a type of loan in which the borrower gives a property as collateral to secure payment of the debt. Typically, this operation is usually indicated for those who need to pay very high amounts.


First of all, the bank will examine the documents of the property and the applicant for the loan. Then you will do a survey on the property. In addition, it will check if the owner is not dirty.

Residential properties are the most common to be accepted, however, in some institutions, it is also possible to give commercial properties as collateral.

After the bank's authorization, the customer can take the money. Just like any other type of loan, it will repay the amount in installments with interest.


Benefits include securing a high loan and a long repayment term and can pay in up to 30 years.

Since there is a property under guarantee, the bank usually charges less interest on these installments.


The biggest risk is the loss of the property, which occurs if you cannot pay a portion of the loan.

"By law, an unpaid installment is enough to make the customer lose the house. But banks usually wait three to four installments in arrears to take this action, "said Tatiana Viola de Queiroz, a lawyer with the Protested Association.

That is, when making a mortgage is very important to have a well-planned economic plan, otherwise you could have a big problem.

Posted on May 11, 2018 at 02:10 PM

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