How to Mortgage my House in Exchange for a Loan?

There are many reasons why we can need liquidity and there are also several financial tools available in the country to achieve them. Within these alternatives, there is the possibility of mortgaging a house in exchange for receiving a loan that is almost always used to buy a property but, for example, can work to pay debts with financial institutions or respond to any unforeseen event that requires large sums of money for its resolution or for any goal. Despite the fact that the phrase “mortgage a house” has a bad reputation, it is really an action that if taken responsibly turns out to be an option to be taken into account.

What is a mortgage loan?

What is a mortgage loan?

In principle, a mortgage loan is a financing methodology in which the person places a property as collateral to pay the debt in order to obtain a loan, which means that, if the loan is not met, the borrower the money can be charged with the property in question. Once the entire loan is canceled, the property is released and the rights over it are recovered. In our country, the interest for a loan with mortgage guarantee is usually fixed and the financing costs are higher if the money is used for purposes other than the purchase of land, the acquisition or construction of a home.

What to keep in mind before mortgaging the house in exchange for a loan?

Before mortgaging the house in exchange for a loan, it is important to take into account the specific conditions with respect to terms, commissions, interest and any other variable you make at the cost of financing, remember that if you do not comply with the payments you can lose your house. For example, commonly for this type of credits, the terms are wide reaching sometimes at 10, 15, 20 or more years, so, it is recommended to have a good job stability. On the other hand, it is advisable that you make a calculation of your monthly savings capacity by subtracting all the fixed expenses from your income in order to know if you will be able to deal with the amount of the installments to be paid each month.

In conclusion, mortgaging the house is a relevant fact that requires the maximum analysis of your personal situation and the offers available in the market, since they can vary quite a lot, being some cheaper than others.

Can I mortgage my house to pay debts?

Of course, one of the destinations that can be given to the loan obtained through the mortgage of a house is the payment of a debt, however, there are numerous alternatives in the market for which you can opt instead of resorting to a mortgage, option that we recommend in the event that your debt is bulky, since the amounts of credit you can get through this type of product are large exceeding in many cases the million pesos. Keep in mind that, if you use this tool for this purpose, you will be paying off your debts in exchange for contracting another for a long period of time, which is why we recommend hiring a product of this kind as long as you get low interest rates in possible fixed and with the possibility of making early cancellations or advance payments without commissions or penalties to take advantage of the moments in which enjoy good liquidity which is important especially if you decide on a variable rate loan.

What are the requirements to mortgage my house in exchange for a loan?

Each entity has the faculties to establish the necessary requirements to mortgage a house in exchange for a loan , nevertheless, in general lines the following are required:

– You must be over 18 and under 64 years old.

– Have verifiable fixed income.

– Have a positive credit history.

– Have a seniority of work for more than one year.

– That the relationship between the amount of the fee and the income of the applicant is not greater than 25% or 30%.

– Present the CUIL or CUIT.

– Property title of the property to be mortgaged.

– Proof of real estate tax.

– Proof of municipal taxes where the cadastral data appear.

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