Want to know how the bank refinance works? What is it, understand its rules and conditions, and if it really pays to do? So keep reading the text that will clarify for you the main doubts when it comes to refinancing ! This financial credit option is when the client places the property or vehicle as collateral to get a personal loan or business loan.
Other than the loan limit and the payroll limit, in these cases, it is not necessary to sell the house or car to get the money lent. In practice, it is a much easier and less bureaucratic financial transaction than secured home or vehicle loan.
Refinancing the bank to owning real estate, is also known as mortgage. This credit condition is a proposal that can be thought of just when you have a big debt and are paying high interest and get rid of it as soon as possible. In bank refinancing, the repayment period for repayment is long, up to 20 years and interest is lower, starting at 1.15%.
Refinancing the Bank with Property or car is good?
To be approved when applying for a mortgage or bank refinancing giving property or car as collateral, think of the following. Can you lose your home or your car? Well, if you can not pay the installments you promised to pay – finish. Otherwise, there is no reason to fear. Therefore, before choosing for this financial product, reassess your conditions and if indeed you will be able to afford the installments for a long period. As previously mentioned, refinancing is valid for people who need money urgently and for things they consider important.
What are the conditions of bank refinancing?
Did you know that in the United States this practice is so common that even families make an extra income by putting your property as collateral? Here in Brazil, with the crisis increasing, and with banks a little more suspicious due to a variable economy, the refinancing has increased considerably.
And experts say that this is a cheaper option for those who are definitely in the red, that snowball effect on family finances, and urgently needs money, precisely because the payment time is higher and the interest cheaper. Some of the banks that perform this modality are:
Bank of Brazil Refinancing
Before choosing which you will choose to know the rules, payment methods, extra costs and interest rate well.
Know the rules of each bank to do the refinancing
Before opting to refinance your bank x or y (loan as collateral), evaluate at least three creditors to actually get total interest rates closer to the minimum. Otherwise, you can opt for the payday loan with lower interest rates. Know the rules, terms and conditions of each bank you can. Many provide online refinance simulation surveys, in which you can already have a basis for the portion amount or the total outstanding balance.
In general, in order to contract a refinancing in the banks and financial institutions, it is requested that the property and the vehicle be in the name of the applicant, and that they have no financial problems. In addition, in the case of the vehicle, it is only evaluated depending on its year, more than five years of use – forget it!
Homes also, depending on the rules, will be evaluated only those that are worth from 70 thousand, but of course, these rules can vary greatly from each financial institution. Of course, the client must have or open an account with the bank that will be refinancing.
Interest rates on refinancing in banks
Usually banks offer a smaller interest line when compared to other types of loans. Just because he has the property, car or as collateral if he does not pay the debt. The monthly interest rate ranges from 1.15% to 1.75%. To get an idea, one compared to the monthly interest of a personal loan, is from 4.14% to 25.08%, of course according to each bank or financial.
The operation has several costs built-in, and with Total Effective Cost (CET), you know the amount of interest applied, inspection fees, documentation, insurance and any charges and taxes.
Care at the time of refinancing
Refinancing real estate and vehicle in banks or financial institutions has grown in the middle of the crisis, always evaluate if it is the best option for your financial moment, especially if you are in a job not very stable. Making a candid assessment whether it is worth it or not to hire a refinance from the bank of your preference can get you out of future trouble.