Month: February 2020

  • February 12, 2020

    Credit repurchase how does it work?

      The weight and the high cost of living weighs on the shoulders of some employees. The expenses they make are often beyond what they earn. Buying back credit is an effective way for them to find solutions to financial issues that haunt more than one. Read this article, we take stock of the repurchase of credit. What is a credit buy-back? The repurchase of credit is a possibility which is offered by a credit institution to repurchase the credits of a borrower to gather them in only one credit . This operation requires the integration of the elements that are taken into account: the overall effective rate, the time for reducing monthly payments, insurance if necessary, etc. A repurchase agreement functions in effect as a short-term, collateral-backed, interest-bearing loan. The buyer acts as a short-term lender, while the seller acts as a short-term borrower. The securities being sold are the collateral. These parameters are taken into account in the credit buy-back process and, in one way or another, differ from one borrower to another and from one credit agency to another. What is essential to understand is that the repurchase of credit is an operation which consists in decreasing the monthly payment to be paid by the borrower so that the debt ratio swings and, by ricochet, promotes the increase of the rest to live. What is the point of buying back credit? Taking out a loan is always in your best interest, in that it can allow you to lower your debt ratio . Because, to think of carrying out some of your flagship projects, you must necessarily think of reducing your monthly payment. With a credit repurchase , you can have the possibility of taking out a new loan if the bar of your debt ratio goes...
  • Mortgages are used to secure loans and are extended by special mortgage banks. While the mortgage is linked to a specific loan, the land charge represents an abstract hedge that can also be entered in the land register without a corresponding liability. Only 20 percent of all mortgages still belong to mortgages, everything else is covered by a mortgage.   The mortgage lending Mortgage lending is dependent on the value of the property to be secured. For the sake of simplicity, only real estate will be discussed here. In order to determine the amount of the possible mortgage, the mortgage lending frame must be determined for the property to be mortgaged. This does not necessarily have to be identical to the purchase price. Mortgage banks are allowed to grant loans up to 60 percent of the loan value. The associated house bank usually takes care of the additional financing requirements. With the entry of the mortgage, the lender has the option of realizing the property if the borrower no longer meets his obligations from the loan.   Difference between mortgage payment and mortgage refinancing As already stated, the entry of a mortgage is based on a specific obligation. This can be a Mortgage loan, but also, for example, a pension benefit. Due to this close interlinking, a mortgage payment would theoretically have to be taken into account and the amount of the mortgage would have to be corrected. In contrast, the land charge is abstract and can also remain entered in the land register without any obligation. This does not mean that the bank will still have access to the property after payment of the last installment, since it is contractually stipulated that all claims expire when the loan is repaid. While the mortgage can be converted into an owner’s...