What Is a Mortgage Loan?

Secondary mortgage loans refer to re-mortgaging the mortgaged collateral and obtaining a loan from a specific lender. The characteristic of the secondary mortgage loan is that it does not need to pay off the previous loan, and directly re-mortgages to obtain the loan again, saving many intermediate links such as time and advance costs.

Secondary mortgage

Secondary mortgage loans refer to re-mortgaging the mortgaged collateral and obtaining a loan from a specific lender. The characteristic of the secondary mortgage loan is that it does not need to pay off the previous loan, and directly re-mortgages to obtain a loan again, saving time and

For example, suppose a property has been mortgaged at a bank and is still repaying normally. In this case, if the homeowner applies for a mortgage loan again, there is no need to repay the bank loan in advance. As long as he can pass a professional evaluation, The appraised value is mortgaged again.

The applicant can do the mortgage registration procedure only once to achieve the maximum mortgage loan. After obtaining the maximum loan amount, you can withdraw the loan in several times as needed. The interest calculation time is based on the actual payment time of each payment. This can save a lot of unnecessary interest costs. The maximum amount of mortgage is in fact a one-time mortgage. Commercial banks do the highest mortgages in China.

The secondary mortgage is a balance mortgage. According to the property law, as long as there is a balance on the property value after the primary mortgage, it can be used as a secondary mortgage or a three-time mortgage. At present, the common form of domestic mortgage balance is generally Five-colored soil mortgage, pawn mortgage or professional loan company mortgage.

Documents required for a secondary mortgage loan

Mainly based on the specific requirements of the regional construction committees, usually only the applicant's real estate certificate (real estate title certificate or house ownership certificate, land use right certificate or purchase contract and invoice), identity documents (resident ID card, military officer certificate, etc.) are usually required. According to the time of use of funds and the time for other districts and counties to process other entitlement certificates, in general, the loan can be released on the day of receiving the other entitlement certificates.

Secondary mortgage property requirements

Different banks have different regulations on mortgaged properties, and they will have corresponding requirements on the year of construction of the property and the area in which it is located. For example, there are more restrictions on properties before 1995 or those in some remote suburbs and counties, and the amount of loans is less. However, there are no restrictions on the age and location of real estate. Real estate that can almost be registered as a mortgage can be reasonably evaluated based on the price of similar properties on the market at that time, so that the lender can obtain a higher loan ratio than the bank. .