Mortgage broker and mortgage : 10 tips borrowed.

The Belgian brick in the belly … a formula that is often and rightly so …. The priority of private investment will go to its real estate investment, whether renting or purchasing. But why continue to pay rent to bleed? This question, many of the Belgians is already raised with over 70% of them are proprietary. It is no coincidence: In recent years, mortgage rates have remained very affordable.

For candidates to mortgage, here are some rules that can help them engage in informed consent:
1. Do not put the cart before the horse.

Needless to dream above its means. With the help of his banker or broker should determine how much you can borrow before any commitment. It is generally assumed that the monthly mortgage can not exceed 1 / 3 of net income of the borrower or household.
2. Compare rates.

Competition among banks is fierce. However, we do not immediately compare the rates you are proposing, but rather the amount of which will be borne ultimately by capital and interest. Banks offer a variety of formulas (V.5).
3. Duration.

The repayment period can range between 15 and 30 years. But in recent years, rising real estate market has made home ownership for young families. To remedy this, banks like AGF Belgium and Fortis Bank offer loans with repayment period up to 40 years. Thus, the monthly payment is affordable. For its part, Fortis AG “Hypoflex” a product that can stop a refund in the event of a hard blow or change the form of credit without charge. Dexia offers young borrowers to pay less at the beginning of the credit, and a little more when their incomes have increased. Warning: the greater the duration of the credit, the smaller will be the monthly repayment, but the higher the total interest repayment ….
4. The reverse mortgage: a bill that goes even further.

Reverse Mortgage (reverse mortgage or lifetime mortgage) is a real success in the Anglo-Saxons. This is a new form of borrowing that should be up here in June 2007. It allows for an annuity or a lump, but still the owner. When the draft becomes law, a person will have the opportunity to obtain a loan, the sum will be part of the market value of his residence. As in a traditional life, a mortgage is taken, but the benefit of the lender and not crédirentier (who receives the benefits). Furthermore, as for some life, the owner can remain in the premises. In this new credit, the value of the residence was converted into an income. The repayment of the loan (principal and interest) will be the death of the borrower, when selling the property mortgaged or if they change their main residence. After deducting the amount of the lender, the balance of the proceeds from the sale will revert to the owner or his heirs, who may have a bad surprise ….
5. Formulas.

Over the past ten years have seen an explosion of any borrowings. It is even possible to repay the interest during the life of the loan. This is the formula for the fixed term. The capital will be repaid at the end of the term of the loan or with proceeds from the sale of the property at that time, or in any other way. The recovery of capital may also be made by the system of branch 21 (underwriting life insurance Single) or branch 23 (life insurance linked to mutual funds). It is also possible not to pay the same amount each month. These forms of depreciation and progressive. But the most common form of repayment remains constant. Besides the fixed rate, there is a semi-fixed rate and variable rate. In these last two options, the rate may, during the period of repayment, change and, consequently, the monthly payment as well. Of course, in exchange for this risk-taking by the borrower, the base rate offered by the bank will be lower, at least in a situation where rates are low, as at present. The borrower can decide to take the risk of its rate “exploded” when he means. This may be after one, three, five, ten or fifteen years. It may also limit the risk of rising or falling rates at this time

All credit data are summarized in figures. To become familiar with the mortgage supermarket, take three examples:

- Form 10 / 5 / +2 / -5 to 20 years, the base rate of 5.75% means that the rate is fixed for ten years, with yearly review and then a limitation on the increase of 2% and the down 5%.

- The formula 1 / 1 / +3 / -3 25-year base rate of 5.85% means that the rate will be reviewed annually, with a limit of 3% to upwards or downwards.

- Form 13 / 5 / 2 / unlimited 20-year base rate of 6.55% means that the rate will be revised after 13 years with a limit of 2% on the rise, and without limitation to the decline. Needless to say, the longer the rate will remain fixed, or it will be high.
6. Costs.

a) First, the costs of the notarial deed of acquisition, and the deed of mortgage. They can be calculated online, for example on the site of notaries
b) the cost of banking expertise should not be forgotten. It varies significantly depending on the banks
c) the fee charged by the bank
d) the premium for fire insurance.
e) the premium for any life insurance balance of (ASRD). What is it?
If the borrower dies prematurely, his heirs can not necessarily assume this monthly. To protect his family, it is common to take out a contract of life insurance whose capital is the balance that is still in the bank. For the latter, ASRD is a provision which reinforces the commitment of the borrower. Without going into details, note that there are different formulas. Let one of the premium, premium fixed or variable, or with a existing group insurance, a pension or pension insurance. Warning: the following companies, the premiums can vary from simple to double.
f) Finally, in the presence of a construction, the lender usually will charge a commission for booking on the funds collected after a certain period.
7. The formula of the mortgage term.

A borrower may propose to his bank to give a mandate to enable it to take mortgage if justified in the future. In this way, the borrower may have the funds without incurring the costs of opening a mortgage. Of course, it must enjoy a certain notoriety with his banker. The solicitor will be responsible for drafting the mandate, but the mortgage provision that will require significantly less (approximately 5 times less expensive). This is justified by the absence of registration of mortgages in the office and the very low cost from the formality of registration of the deed.
. Do not forget who is the customer ….

Your banker may take into account your loyalty, amounts you have already saved (savings), the importance of the loan you request, the expertise of your renovation projects, lease partial, etc. .. . You can claim the benefits that your situation allows.
9. Your personal situation.

Credit conditions will also depend on your age, your aspirations, your repayment ability and method of reimbursement approved. You and anyone else who are best placed to assess these criteria.
10. The condition precedent.

You found your dream home? When an application for a mortgage has been accepted by the bank selected, it will send the borrower an offer limited in time and resume the credit terms. The notary of the borrower will receive the draft deed that it will fit. But sometimes it happens that the loan is refused. The buyer could then be in a position very soon <
nice to have to buy a property that can not pay. That is why it is advisable to include in the compromise a condition precedent for obtaining credit. In case of refusal, the buyer will not lose money because the sale will be deemed never to have occurred. In law, for this type of clause is valid, it must not only depend on the goodwill of the borrower. The compromise would include the lender, the amount that you wish to borrow and the period within which the credit must be given (often 4 to 6 weeks). Sometimes, in case of refusal, the compromise provides that the purchaser shall pay compensation to the owner following the blocking of the property during this period.

When these rules are followed and that you have a firm offer from a lender (bank, credit agency, insurance company, etc..), There is nothing to play competition, but comparing identical formulas, taking into account all costs related to each of its forms (fees, expertise, life insurance premium, to be truly repaid, etc.).