One of the most important decisions that all people must make at some time in their lives, is to buy their own home. When buying a home, mortgage loans for land and house are an excellent option to take that first step of independence and get a mortgage and a personalized house. However, your needs may change over time and you need a bridge loan. Do you want to know what a bridge loan is? We tell you in this post.
What is a bridge loan?
A bridge loan is a mortgage loan through which a person who has acquired a home through a mortgage and still has part of it without paying the bank, can receive another mortgage loan to acquire another home without the need to sell in a hurry. that you acquired first.
In the case of applying for a second mortgage for a bridge loan, it is best to use a mortgage comparator. So you can directly find the mortgage that really suits your new needs and preferences .
Are you going to change houses?
Generally, the first house that is bought is usually one that suits the current needs of the owner, however, these needs may change over time, needing to buy another house that is larger, in another area or city. Many people often wonder what they should do, if they need to buy another house and still have a share of the self-promotion mortgage pending payment.
Given this situation, contrary to what most believe, it is not necessary to wait to sell the first house to obtain another , fortunately to solve these situations there is a mortgage bridge loan and then we mention everything you should know about this type of credit bridge.
How does the mortgage bridge loan work?
The bridge loan is granted by the same bank to the person who already has a mortgage loan and wishes to receive another to buy a second home. In this way, the two loans are united into one.
However, in most cases until the first house has not been sold, the person will continue to cancel the mortgage payments of the first mortgage plus the interests of the second. Once the first house is sold, the person must pay the part owed on the first mortgage and start a new payment process for the second mortgage.
What is the time limit to sell the first home?
This will depend on the financial institution, usually giving up to 5 years for the person to sell the house. In case of not selling the property in the agreed time, the person must start paying fees for both mortgages. Many entities are flexible and establish fees that are comfortable to pay, since they have the assurance that being a bridge loan, the two properties are the guarantee of insolvency.