What Are First Mortgage Loans?

Mortgage loans, also known as "mortgage loans". Refers to a loan method adopted by some national banks. The borrower is required to provide a certain amount of collateral as security for the loan to ensure that the loan is repaid at maturity. The collateral is generally easy to save, not easy to wear, and easy to sell, such as securities, bills, stocks, real estate, etc. After the loan term expires, if the borrower does not repay the loan on time, the bank has the right to auction the collateral and use the proceeds from the auction to repay the loan. The balance of the auction loan repayment loan is returned to the borrower. If the auction proceeds are insufficient to pay off the loan, the borrower will continue to pay off. ^[1]

Mortgage

Mortgage loans, also known as "mortgage loans". Refers to a loan method adopted by some national banks. The borrower is required to provide a certain amount of collateral as security for the loan to ensure that the loan is repaid at maturity. The collateral is generally easy to save, not easy to wear, and easy to sell, such as securities, bills, stocks, real estate, etc. After the loan term expires, if the borrower does not repay the loan on time, the bank has the right to auction the collateral and use the proceeds from the auction to repay the loan. The balance of the auction loan repayment loan is returned to the borrower. If the auction proceeds are insufficient to pay off the loan, the borrower will continue to pay off. ^[1]

Mortgages and mortgages

The Mortgages stipulated in the Urban Real Estate Management Law and the Guarantee Law are different from mortgages in Hong Kong, that is, the two laws define mortgages on the condition that they do not transfer possession.

Mortgage is passed by the mortgagee (buyer)

Mortgage loans are divided into two types: maximum mortgage and traditional mortgage. The maximum mortgage refers to the

Handling mortgage consumption business has also become an inevitable choice for some consumers. Lin Qian, the vice president of Chain Real Estate, reminds consumers that in addition to choosing ordinary mortgage consumption loans, according to individual circumstances, they can choose different special types of loan products:

Those with weak monthly repayment ability: suitable for replacement housing loans

Replacement mortgages can extend the life of the loan to 30 years, which is different from the 20-year term of ordinary mortgage consumer loans. It distributes the monthly repayment pressure and is suitable for young people with weak monthly repayment ability.

Those with a higher repayment amount: suitable for net worth loans

Some buyers have temporarily borrowed more funds to purchase a house, so the repayment amount is also higher. When doing mortgage consumption, a higher loan amount is required to have the ability to repay the temporary loan. This situation is suitable for choosing a net worth loan. The maximum loan percentage of this product is 80%, and the mortgaged property is required to be less than 90 square meters within five years.

Those with unstable monthly repayment ability: suitable for revolving loans

Mortgage consumer loans are more likely to be audited against the property itself, so for some people with unstable monthly income and loan repayment ability, revolving loans are a better choice. You will get a certain loan amount when you mortgage your house to a bank. During the mortgage period of the property, you can withdraw it in stages and recycle it. This way, we can guarantee that we have a certain amount of "surplus money".

(1) The borrower applies for the maximum mortgage for personal housing with newly purchased or unowned mortgaged own housing as the maximum mortgage, which must be provided; identification materials; proof of solvency; down payment invoices; The "Application Form" proposes to apply for the maximum mortgage loan for personal housing. ^[2]

All factors must be taken into account when refinancing

(I) Relevant regulations did not confirm the registration of the mortgage registration department uniformly, leaving the bank at a loss

For example, the "Notice on Strengthening the Management of Real Estate Mortgage and Evaluation Related to Bank Loan Business" jointly issued by the People's Bank of China and the Ministry of Construction stipulates that the local real estate management department is the urban real estate mortgage registration department. A Provincial Administration for Industry and Commerce and a provincial branch of the People's Bank of China jointly issued the "

Among many people who buy a house, some groups want to replace the big one because the house is too small, or need a large amount of capital turnover, generally consider the real estate mortgage loan, the conditions required for the mortgage real estate loan:

1. Loan use: Used to support individuals in buying a home and recycling loans.

2. Loan object: Chinese citizens with full civil capacity, Hong Kong, Macao, and Taiwan natural persons who have the right of abode in mainland China and full civil capacity, and foreigners with the right of abode in mainland China who have full civil capacity.

3 Loan conditions:

(1) Have a legal identity;

(2) Stable economic income, ability to repay principal and interest on loans, and no bad credit history;

(3) Have a valid and valid house purchase contract;

(4) If the newly purchased house is used as the maximum amount of mortgage, it must have a valid and valid house purchase contract, the house age is within 10 years, and a down payment of not less than 30% of the total price of the house purchased must be provided or paid;

(5) If a home mortgage loan has been purchased and processed, the original home mortgage loan has been repaid for more than one year, the loan balance is less than 60% of the value of the mortgaged home, and the house used for the mortgage has obtained the house ownership certificate. Within 10 years;

(6) Able to provide effective guarantees recognized by lenders;

(7) Other conditions stipulated by the loan bank.

4 Loan limit: up to 70% of the price of the home purchased;

5. Loan term: Generally up to 30 years. If the newly purchased house is used as the maximum amount of mortgage, the starting date of the effective period is the day before the signing date of the "Personal Housing Loan Contract"; if the original mortgage loan of the Construction Bank is converted into the maximum amount of mortgage, the period of validity starts Day is the day before the original home mortgage loan issuance date;

6. Loan interest rate: The loan interest rate is the same as the personal housing loan interest rate.