What are the documents required to apply for mortgage loan? Know what fixed rate mortgage, and cash back mortgages are

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Hope you have chosen a good financial institution to take a loan against the mortgage. It is essential that the mortgage on the property is done responsibly. When performed with caution, it can be quite beneficial, especially for those who have clear plans for the use of money. Now that you’ve decided which company will grant you the credit, it’s time to prepare the paperwork for your order. Remember that a credit analysis will take place so that your funds are released. See the list of documents:
ID, and CPF of the holder and spouse, if any.
Wedding certificate.
Deed of the property to be mortgaged.
Proof of income.
Proof of address.
Certified copy of the purchase title of the property.
Original, and updated certificate of the property district.
Original certificate of the entire enrollment content, with no charge.
After that, just wait for financial responsibility, and plan what you will do with your resources. If your name appears on a credit protection agency, it is important to pay off the debts contained in the restriction to facilitate the release of the requested amount.
How to cancel the mortgage?
According to the law, the mortgage can be extinguished under the condition of some situations. When the debt is paid. When the creditor expresses debt forgiveness. When the mortgaged property is sold or negotiated. In this case, both the creditor and the new owner must be legally notified of the transaction. To cancel, it is necessary to appear at the Real Estate Registry Office with the declaration of debt settlement offered by the creditor. It is important that this document is notarized, and that it has the address of the mortgaged property, the mortgage registration number, and the certified copy of the document that authorizes a representative to sign the debt settlement term.
When investing in your business
If you have a business and want to expand it, mortgaging your property can be a solution to raise funds. This is because this investment can bring more returns, and improve your financial life. It is also possible that you use your own profits to pay off the debt with the financial company. The same goes for those who want to start a business. In this case, it is important to study the market, plan the stages of opening the business, and prepare yourself before applying for the mortgage.
In the reform of the house
If a renovation of your property contributes to its appreciation, it may be a good option to mortgage your property. It may be more advantageous than buying material and paying labor with credit card interest. It can be especially suitable for renovations, and repairs that cost a lot of money such as changing electrical wiring, installing swimming pools, or even building another property on the same site.
In the discharge of expensive debts
Everyone has gone through the hassle of owing large amounts and risking losing a car or other assets. At this time, mortgaging the property can help you pay your debts in installments, and at lower interest rates. You can apply for a loan to pay off more than one debt and, concentrate the payment on the single monthly installment of the mortgage on the property without the abusive interest, and without the risk of paying twice what you owe. The mortgage allows the applicant to obtain a significant loan with the possibility of paying in the long term which can be a breather during a financial crisis that seems to be unsolvable.

You must look for a cashback mortgage
A cashback mortgage is one where a cash lump sum is paid to the mortgage applicant on completion of the mortgage. The biggest advantage of cashback mortgage is that the mortgage charges lower interest on installments, precisely because there is a property as collateral. It is also important to analyze your financial situation, and the ability to pay to avoid being surprised by high installments. The ideal is to have the help of a serious company, consolidated in the market and with a high level of satisfaction. This prevents you from going through fraud or other problems that could compromise your assets and the future of your family.
Fixed-rate mortgages offer great security
Not surprisingly, your interest is protected against the fluctuations. Even so, experts warn that these types of mortgages have certain peculiarities that must be taken into account before hiring them.
The longer-term, the more interest
The first thing to keep in mind is that the interest applied by the bank is not the same in all cases. As a general rule, entities offer different types according to the term selected by the client. Thus, the longer the repayment period, the higher the interest on the fixed mortgage. In the shortest terms (10 or 15 years), the interest maybe even less than 2%, while for longer ones (20 or 30 years), this is usually higher.
Variation of mortgage payments
Another aspect that does not usually pay too much attention is the monthly payments of fixed mortgages which may undergo modifications over the term. It is true that the interest of these products is not linked to any index that may vary from one year to another, but the type applied by the bank is subject to the fulfillment of a series of binding conditions. If at any time during the life of the mortgage you stopped meeting these requirements, you would lose the bonus. So the interest applied would increase as soon as the contract review is carried out.
Conclusion: Compensation of risk by interest rate
Finally, you should also remember that fixed-rate mortgages may include the so-called interest rate risk compensation. A commission that can be charged if you carry out early repayment or subrogation which generates an economic loss to the entity. This penalty is not regulated, although its cost usually ranges between 0.5% and 5%. If applicable, it can be added to the early reimbursement or subrogation commissions. However, it seems that this commission will disappear as soon as the new mortgage regulation enters into force.

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