Do you have a mortgage contracted and need a loan? In that case, you might find two possibilities interesting; extend the mortgage a few more years (as you need) or ask for a loan to the elderly. Next we will analyze which option could be better for you based on your needs, to make it clearer, we will see if personal loans are the product you need.
It is better to ask for a loan or extend a mortgage
A user who is immersed in a mortgage and needs liquidity, can use alternatives such as those mentioned, each with its advantages and disadvantages, since it always depends on the client’s situation.
That first, it may seem more reasonable to extend the mortgage, since interest is usually lower. However, it is not always possible to extend a mortgage, and in those cases a good option may be to apply for a personal loan.
Cases in which it is better to extend the mortgage
- If the bank accepts the novation or subrogation of the mortgage
- The client has liquidity to assume the expenses of the management
- Few years left to finish paying the mortgage
Cases in which it is better to apply for personal loans
- You need speed in management
- You want to save the management expenses for the mortgage expansion
- You need a lower amount
What steps must be taken to extend a mortgage?
First you need to check that in the mortgage loan contract you have the option to extend it. In that case you can follow the path of novation (do it with the same bank) or subrogation (with another different financial entity).
As for the associated expenses, we have:
- Novation commission: between 0 and 1% of the outstanding capital
- Appraisal: depends on the rates of the entity
- Notary and agency expenses: between 0.2 and 0.5% of the amount borrowed
- Property registration: approximately half of the notary fees
- Taxes on documented legal acts: usually 0.5% of the capital increased, but it depends on the autonomous community
What steps must be taken to apply for a personal loan?
Through Fundlink Loans you will always find the best loan for you, because we search, compare and negotiate with top entities to offer you the money you need and at the lowest possible interest. You can do it through the web or also through our Fundlink App and improve the credit score. In addition, a financial advisor will help you make your money pay more.
The purpose influences when requesting personal loans
In the event that your bank does not allow you to extend the mortgage, you will always have the option of resorting to personal loans. But in addition, the purpose for which money is needed can also influence interest.
Advantages of applying for personal loans
It is the best alternative when liquidity is not available to face the commissions that the mortgage extension entails. Because as a customer you will have to pay the associated management costs, which in many cases are around 1500 dollars (regardless of interest).
And if you don’t need to ask for a high amount of money, a personal loan compensates you much more than extending the mortgage; since in the end you will be paying less for your money and that is the really important thing.
So if you are determined to apply for your personal loan, do not wait any longer and go online or download the app to get your financing. Find out how much you can request and at what interest, all based on your credit score. In less than 24 hours they are yours!