Advantages of mortgage

Advantages of mortgage

The real estate market will always be important. People always have a need to move home, improve their homes, buy new homes. The truth is not always people who have to have the amount of money. But prices today are very high. You can, of course, somehow contrived to revise your budget, and just save up for the purchase of an apartment.

However, inflation also affects the money begin to depreciate, and house prices are rising. And in such a situation, the average man in the street does not have a chance to accumulate the required amount even to the end of life. And why many have resorted to such a drastic measure as the mortgage.

Mortgage – a loan from a bank, a special credit program that seeks to provide housing for people when he wants it. What is different from other mortgage products that provide people with a loan?
With mortgage lending means a contract for the long term, which sometimes exceed 120 months.
To make the contract, you do not look for the guarantors do not need to take credit for something in cash bail, house and will guarantee payment. And in such large amounts that the bank offers to buy an apartment (which may be 80 or even more percent of the total purchase price), find a sponsor now oh it is not easy. What, then, will be to secure a bank loan payments? Purchased housing and will is such a provision.

When buying an apartment buyer mortgage, it becomes a sovereign master of housing at the time of purchase. It will come into ownership, regardless of whether the housing collateral, the bank or not.

The advantage of a mortgage in that the borrower provided tax deduction. This means that he does not have to pay income tax, which is calculated from the amount spent on the purchase of housing.
The payment on the loan is not much higher rent for a tenant. Then probably better to pay for the apartment, and not to give their money to pay for someone else’s apartment, you can also safely take a consumer loan cash to repair a new apartment or house.
Some, of course, fear of relatively high interest rates on mortgage loans, which can range from 10 to 15% in the end of the overpayment amount is 80 – 100%. But because credit program is designed for 10 years or more, so given the rise in housing prices, the price will correspond to the market price at the time.