What is a mortgage? Mortgage loan procedure?

If you are having financial difficulties and are interested in mortgage loans, do not ignore this article, Tnhelearning.edu.vn will help you answer your questions!

What is a mortgage? What are the characteristics of mortgage loans?

You understand simply that a mortgage is a bank loan that requires collateral to secure your loan . The bank they will consider your application is eligible or not? They will check the valuation of your assets as collateral such as cars, houses, land, diamonds, … on the basis of which they will decide whether to lend you or not.

What is a mortgage? What are the characteristics of mortgage loans?

Features of mortgage loan:

– Must have collateral, this property will be appraised by the bank.

– Very low interest rates.

– Extended loan period.

– Flexible payment methods.

– The loan amount can be very large and fluctuates between 70% – 80% of the value of the collateral.

Procedure and process of mortgage loan red book?

Banks now accept a variety of mortgage products for different loans. Therefore, borrowers have more choices in considering which type of property to mortgage to get a higher loan price. But the most popular is still the red book mortgage.

You can mortgage the red book, land papers, real estate to borrow a sum of money for your own purposes and spending.

Procedure and process of mortgage loan red book

The procedure for applying for a red book mortgage is as follows:

– Certificate of property owner:

+ Citizen’s identity card or identity card (no more than 15 years).

+ Permanent residence book.

+ Certificate of temporary residence registration; temporarily absent.

+ Red book by the borrower in the name of the owner or the purchase and sale contract.

Income proof:

+ Electricity bill; country or salary slip of the person to be mortgaged within the latest 3 months (for business employees, invoices must be at least 6 months).

+ Business license, output/input invoices of economic activities.

The red book mortgage loan process is as follows:

Step 1 : Submit a copy of the land use right.

Step 2 : Sign the red book mortgage contract, credit contract and notarize that contract.

Step 3 : Sign up for a secured transaction.

After signing, your land use right certificate will be added: it is owned by a certain bank that you take out a mortgage.

Step 4 : Disburse the loan amount.

Benefits of taking out a mortgage

Benefits of taking out a mortgage

– This form should be chosen when you need large amounts of capital to invest . Because the amount of money the bank approves for a loan is quite large, ranging from about 70% to 100% of the value of the property you mortgage.

– The interest rate applied for this form of loan is very low. In the first years, the interest rate can only range from 6% – 8%/year, in subsequent years, it ranges from 10% – 12%/year.

– Flexible loan term extends according to the needs of the borrower, helping the borrower to partly reduce the economic burden.

– In this form of loan, customers can be assured of their assets and still have full rights to use that property.

Types of mortgage loans today

Today, the popular demand for mortgage loans leads to diverse and easy forms of mortgage loans at banks. The most popular forms of mortgage loans at banks today:

Bank mortgage to buy a car : In this form of loan, the owner can use his own property to buy it and use it as collateral with the bank. Currently, this form is very quick and quite simple.

Most banks now apply the form of a bank mortgage to buy a car and there are many incentives for this form. The interest rate applied to this form of loan at each bank is different, ranging from 7% – 13% depending on each bank.

Mortgage loans from banks to buy land and houses : A popular form of loan at banks. For this form, when you do procedures for a bank mortgage to buy a house, land, apartment, etc., you can get a loan up to 100% of the value of the property you want to buy.

The average loan period lasts from 15 years to 25 years based on collateral, fixed monthly income and loan demand. Maybe you will get a loan of about 500 million, 1-2 billion … depending on your financial proof with the bank.

Types of mortgage loans today

Bank mortgage loan for business use : A form of loan to quickly solve financial problems when expanding production and business . In this form of bank mortgage, the current popular interest rate at banks ranges from 7% – 9%/year.

Bank mortgage loan to study abroad : This form is intended to serve the financial needs of students who want to pursue study at schools abroad . For this form, the maximum loan term is up to 25 years, you can be approved for a large loan with a value of 70% – 90% of the value of the collateral, a relatively favorable interest rate, fluctuating about 6% – 9%/year.

Bank mortgage used for consumption : A form of bank mortgage with collateral to quickly meet your financial resources. This loan helps you to be more proactive in using the loan to spend for your own consumption needs.

Mortgage interest rate

Current mortgage interest rates at banks are different, but they range from 10% – 16%/year . Moreover, this form of loan is often deployed by banks with promotions, incentives on gifts and interest rates, so the interest rate applied in the first period of the mortgage loan is very low from 6% – 11 %/ year.

Mortgage interest rates of some banks

Note : The above interest rates are for reference only and will change from time to time, you can visit the bank branches to update more accurately.

Hopefully, the above information of Tnhelearning.edu.vn will help you better understand what is a mortgage loan? Is its loan procedure complicated or not? And help you choose a way to get a mortgage simply and quickly, suitable for your finances!

See more:

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>> Conditions and procedures for bank loans

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