WHAT IS A MORTGAGE?
A mortgage loan is a loan with security that is materialized in the valid estate mortgage in favor of the Bank or financial the money. That is, the financial establishment would turn into owner of the house if not complied with the covenants set forth in the conceding of the mortgage loan.
The being of such collateral is what creates the interest rates on mortgage loans are much lower than those charged on personal loans. In these, the security is a person and, consequently, in case of non-payment of payments or periods the bank can not do practically anything to get their money.

Equity loan
In addition to the applicant's personal warranty, security is supplied, ie a house. The situation of obligation is reflected by registration in the Land Registry, leaving the affected farm debt. In making the sale, has to resolve the outstanding debt to the lender, who will attend the award for his signature and hand writing of the cessation of mortgage.

It is doable that the customer is concerned in financing their acquisition as well by a mortgage, and in this case could be interesting to believe the selection of surrogacy, avoiding much of the costs involved in the establishment of original mortgage. This situation is frequently obligatory by builders on first transmission, approving contract the buyer's obligation to pay the cessation fee. This clause is contrary to law (RD 515/1989 of 21-4, art. 10) and will be the vendor who bears the costs of deletion.

The sum granted by financial institutions habitually cover 80% of the price, while exceptionally if necessary, can be supplemented with a individual loan or guarantee guarantors. If payment of assessments, it is achievable that the lender proceed with the abrupt enforceability of the total exceptional debt, which takes place through the courts, and in case of fail to pay the possessions is repossessed and auctioned to pay back the amount due.

TYPES OF MORTGAGE LOANS
Fixed rate loans involve a share constant. The upper limit repayment term is between fifteen and twenty years, more time than the 30-35 that the variables are amortized.

Variable rate loans.
Undergo a periodic examination of the interest rate, adjusted for the reference (Mibor, Euribor, IRPH). The propose is made indication of the type of productivity, which is changed after six months or annually according to the covenant, and also determined the differential rates referents. Thus, the fee varies, plus or minus, as occurs increase or decrease in those rates. It is practicable to agree on repayment periods around age 30-35 at home loan low rate.

Loans mixed.
The analysis would not occur until a extended period has elapsed since the grant, regularly five years. Thus, in this period, the fee is fixed and then vary on home loan low rate.

Fixed rate loans.
While the share remains unchanged, to be referenced to changeable interest rate, which changes the term of the loan.

CRITERIA FOR GRANTING of home loan low rate
Amount.
The present rules, the Mortgage Market Law of 25 March 1981 and the set of laws that develop it, 17 March 1982, involves that the quantity of home impartiality loan can not exceed 80% of appraised value. generally granted in about 70 or 80% of the appraised or market cost of the home offered as safety. Then again, in certain situation, this limit can be extended up to 100% or even more, depending on market circumstances, if any salary paid or guarantors to support the operation.

Borrowing capacity of home loan low rate.
The tax billed is calculated structured on net monthly revenue and the banks counsel that no more than 35% of them. Conversely, this limit can be taken in periods like the present monetary boom and low prices in interest rates may be distorted in other joints. Though, from the point of view of the payment, it is recommended a period of 15 years to repay the loan, is a priority to meet the successive payments home loan low rate.
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