Are you on the market for financial services? If so, then it is highly likely that you have already encountered the term“laen kinnisvara tagatisel”(the loan secured by real estate). This type of financial service, as the name already suggests, is a secured loan wherein the security is in the form of a home or any other piece of real estate property.
A Quick Overview
Whenever you take out a loan and the collateral you use to provide the lender with security is your home or other types of real property, the money you are getting is known as a real estate loan. A promissory note will be signed as proof that you promise to pay back your debts to the lender.
Most loan lending companies prioritize borrowers who are willing to sign up their real estate property as collateral. This is simply because laen kinnisvara tagatisel provides them with security that, in the event the borrower is unable to repay the debt, they will still be able to get back their money.
Most Common Types of Real Estate Secured Loans
First mortgage, second mortgage, home equity, and commercial loans are some of the most common types of loans secured by real estate.
First Mortgage Loans
This is the most popular type of real estate secured loans. When you purchase a piece of real estate property or you refinance your existing one, the loan that you will acquire is called “first mortgage”. The term basically pertains to the fact that the loan lending company is the one that has senior lien on the property, something that is recorded even before other claims are made on your home.
If this is laen kinnisvara tagatisel that you are going to apply for, keep in mind that the total amount you can borrow is based on your home’s collateral value as your income.
Second Mortgages and/or Home Equity Loans
The amount of money that can be borrowed through a second mortgage will depend on your ownership or equity. Second mortgages and home equity loans often refer to the same kind of financial service, as both of them are dependent on the total amount of equity you have in the piece of real estate property.
Of course, it only follows that the greater equity you have in the property and the more valuable your home is, the higher the amount of money you can borrow.
You can also apply forlaen kinnisvara tagatiselin the form of a commercial loan. In such a case, you can take out this type of financial service if you want to buy a commercial property or refinance an existing one in your possession. In most cases, commercial loans apply to infrastructures that you use for business purposes or those that you rent out to other people (tenants).
One thing you need to keep in mind before you apply for this kind of real estate secured loan is that the terms and conditions are less attractive than those for residential loans. The interest rates are higher and the repayment periods are shorter for laen kinnisvara tagatiselin such instances.