What are the characteristics that differentiate a mortgage from a loan?
The main difference between mortgage and financing consists in the fact that the mortgage is a form of financing, which is a form of loan, the amount of which exceeds € 31,000 and is usually for the purchase of a property or an asset of need.
The loan is the loan of a sum of money by authorized financial intermediaries (institutions, such as financial, or banks) which will then be returned together with the addition of interest expense (which should have maximum rates guaranteed by law in order to avoid the 'wear).
A refund of the amount paid must be precise intervals are established in the contractual stage in the act of financing. The two figures involved in the agreement are:
- The debtor. The one who contracts the debt;
- The lender. That is the provider of the loan.
Financing may inquadrarsi into 2 categories:
- Personal finance. That's what I released on a personal basis, which can range from petty expenses (a television) to large purchases (car) and is returned in installments at fixed intervals. According to the law on consumer credit, the maximum amount financed is of 31,000 € and you need not provide any information about the use to which they will do. A type of personal finance is the sale of the fifth. The characteristic of this funding is not the reason for the request, but the method of repayment, which is carried out directly by holding a figure salary that can reach up to a maximum of one-fifth of the salary received, net of taxes.
- Loan trustee. It is characterized, as its name implies, on the trust that must be granted to the debtor as collateral may not be sufficient to cover all of the debt contract. The supporting documentation used to determine if the person is worthy of the "trust" that may be granted and what will be the amount of the repayment installments. Must be produced documents showing income (salary, pension, unique model) to support the trust required.
The loan is usually linked to the purchase of a property.
The mortgage is a loan instead of an amount greater than € 31.00 and is usually for the purchase of a property (such as your home). Because typically the collateral securing the loan are not sufficient to cover the amount for which you are asked for the loan is associated with a mortgage on which guarantees the creditor to the debtor poterespropriare in case of insolvency.
When it contracts a loan is called the repayment of the loan received degliinteressi including passive and takes the name of the repayment plan.
The amortization schedule shows the amount of the installments, the number and time distribution of the same. The amount of the installments is expressed in respect of each installment of the amount of interest and the portion of the loan that is going to pay with that specific installment. Initially, the rate go to cover for much of the portion of interest expense and a small part of the capital going to reverse as the proportion.
For example, if the debt is € 1,000 plus interest of € 100 for a total of 1100 €, on a theoretical division into 10 installments from € 110 each of the first installment may have a breakdown like this:
- 40 € and 60 € of principal interest (for a total of just € 110)
while the final repayment could be as follows
- € 109 € 1 of principal and interest (for a total of just € 110)
So the value of the installment does not change, but change what you are repaying. This solution guarantees the creditor that if the debt would be repaid in full, would not lose interest (vested with the prime rate) or capital (recoverable with the mortgage).
However, with respect to the number and time distribution of the dates are inversely proportional: the rate may in fact be on a monthly, quarterly, half-yearly. If you have decided on a half-yearly repayment you will only have 2 annual installments (with an amount proportional to 6 month), but if the repayment is monthly you will, of course, 12 installments in a year.
10/05/2012
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Translated via software
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Source:
Italian version of ReteIngegneri.it