What makes mortgage Difficult
March 28, 2009
Mortgage is property debt where that properti usually use as a guarantee,example is House Ownership Credit (HOC). Actually mortage loan spare at two kinds such as :
a. prime mortgage that gives for a borrowers has a good credit, not late in payment bill, also can show that they can pay their bill regularly.
b. subprime mortgage that gives to borrowers that can’t fullfill three criteria in prime mortgage and usually this types is hight risk than prime mortgage. Usually this type make a new oportunity for people to take a credit such as they buy a house with little advance and credit, even they not realize that the interest are big and the installment continue to grow and increase each month.Because the risk of subprime mortage is higher, the interest charged to borrowers is also higher. Now you imagine: the more difficult to pay the debt must pay a higher interest rate.
Especially at the time of crisis such as this, continue to execute a strategy for marketing that they want to get.Because of tight competition, many also been marketing strategy. One is the interest rate the borrower must be paid during the first 2 years is very low, and afterwards (perhaps up to 28 years) interest paid directly soaring increases. So in the interest rates reset after a year-to-2. They also promise with low interest rates during the first 2 years, many people take a mortgage. With home prices that continue to increase, there is hope before the year-to 2 houses can be sold to pay the remaining mortgage.
Now what makes mortgage more difficult, the answer is increase in interest rates that can affect our credit because actually the interest of mortgage is suitable with condition at time, so if that time is crisis it can influnce our credit too. Second if suddently house price is down otomatically we can’t sale our house with a expensive price, so maybe that time we decide to take a new credit.
SO……….in doing a mortgage we should have a future view if we take a credit, we can pay it or not and what negative and positive impact we get.
And REMEMBER that if you can’t pay your installment your bak maybe will doing repossess or seize the property under certain circumstances is essential to a mortgage loan.
Written by rizki· Filed Under mortgage , Tags:, Add new tag, difficull, mortgage, what makes
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