In times of economic recession, such as the country is experiencing, it is normal for the number of indebted people to increase. According to survey, over 40% of Brazil’s adult population, 61.5 million people, has a debt, which hinders financial health. An alternative to getting out of this situation is the loan that has lower interest and greater flexibility.
Applying for the loan is a good option for those who want to pay off their backlog or for entrepreneurs and investors looking for another way to earn an income. For these situations, knowing how to choose the best form of credit is necessary.
Loan with the lowest interest rate and highest flexibility
When a customer goes to a financial institution to apply for a loan, he is faced with numerous options that the bank has. However, it is necessary to know which type has the greatest advantage for the customer, such as secured credit.
Secured loan, also known as mortgage, real estate refinancing and home equity, is very common to be made in the United States, while in Brazil it is more difficult to see people opting for this medium.
This is the loan that has the lowest interest rate and the most flexibility on the market, because by accepting this type of credit, the applicant gives a security of payment to a property, which can either be a residential home or a commercial room, to get the values.
Through this attachment of the house, it is possible to get big values with banks with very low interest rates. This type of modality is great for those who want to pay off many debts or build a heritage.
The Advantages of Mortgage
In addition to being a lower interest loan and more flexible for applicants, the mortgage also has other advantages that can weigh heavily at the time of the final decision. Generally, this type of credit has a repayment term of 10 to 30 years, much longer than the term established in personal loans (5 years).
There is also a limit to the installment amount. The value of each parcel cannot be greater than 30% of income, but not to have the greatest financial impact. Through home equity, it is possible to obtain larger volume of credit compared to the personal loan.
Through the mortgage it is possible that the amount of credit obtained is much higher than those practiced by the personal loan.
Unlike other forms of credit, it is not necessary to provide the destination of the requested amount to obtain real estate refinancing, giving the contractor greater flexibility. In addition, it is possible to mortgage about 60% of the value of a property, getting a larger loan to be used as you wish.
It is very important to note that when deciding on the secured home loan, the loan seeker will get the money within one month. This speed in the process is due to the reduced bureaucracy that involves the contract, which can be done by the website of the institution.
Despite being a loan with lower interest rate and greater flexibility to use the credit obtained, the mortgage still causes some fear in people. Mainly because, if the contractor cannot pay the installments, he may lose the property to pay the debt.