There are several types of mortgages.
The mortgage was initially set up to “liquidate a real estate asset”. Clearly, by allowing the mortgage bank or the credit institution to take a guarantee ( mortgage or bank guarantee ) on real estate, you can theoretically have funds freely available. We will see on our website that the reality is nevertheless much more nuanced.
Our section best home mortgage loans companies: Our solutions gives all the information needed to understand the main types of credits Mortgage:
- The classic mortgage loan: it allows, as we wrote above, to finance an object other than the real estate on which the mortgage will be taken.
- The cash loan: No proof is expected in principle for the use of funds subject to the loan. However, banks and credit organizations must fight against the fraudulent use of funds and moreover do not finance in this context of professional needs.
The loan without insurance: Often for reasons of age source scriptures making prohibitive insurance, some loans are exempt.
The loan non-resident: Credit offered to the US living outside France for tax purposes. Expats are also concerned.
The foreign credit: This type of loan offers to finance real estate abroad.
The restated credit: This type of loan is dedicated to seniors.
FHMLM also offers mortgage loans in fine whose repayment can be provided by the sale of real estate. FHMLM also offers mortgages in fine not subject to the sale of real estate.
Other organizations offer mortgages over two periods. During the first, for example, 10 years, the loan is fine (you only pay interest). At the end of the first period, you repay all or part of the loan using the investment. The amount borrowed falls so much.
Everything happens as if you had a conventional mortgage credit with payment of principal and interest.
According To Your Needs.
Beyond the examples the most common mentioned above, you can finance any object with a Mortgage Loan: a sports car, a boat, a piece of art … For example, FHMLM has funded young retirees who had the wish to achieve a donation to their daughter, repay two consumer loans, and especially finance the trip around the world they had always dreamed of.
Banks and credit institutions agree to make cash loans without justification in a few limited cases:
- The amount of the unjustified cash is less (hardly more than 50.000 €),
- The loan is made as a cash advance before the sale of real estate,
- The profile of the borrower is “upscale”,
- the need for cash for business purposes is not proven.
- Mortgage Loan, Cash, and Borrowing Capacity
There are two basic points to understand:
- the mortgage does not generally allow funds to be freely available, without justifying to the bank how these funds will be used,
- the amount of your wealth is generally not sufficient to determine your borrowing capacity.
On the first point, the 2006 decree authorizing the liquidation of real estate assets to finance any object infringes on banking law. Banks and credit organizations have an obligation to fight the fraudulent use of funds. They must, therefore, verify that you use the funds wisely. However, for some “big” profiles, banks specializing in mortgage lending can lend several hundred thousand euros without justification. This is known as mortgage loan cash.
On the second, we must understand the purpose of the mortgage: finance any object by taking a guarantee (mortgage or bond) on a property that belongs to you. Nothing more. This type of credit does not exempt you from proving to the bank that you will be able to repay monthly the monthly payments inherent to the credit (except in certain cases – mortgage loan, loan in fine specific …).
We will find together the best solutions to meet your needs.
Glossary and FAQ
The Mortgage Glossary and FAQ sections give specific information about the mortgages themselves (for example, details of what a mortgage is, mortgage in fine, mortgage rank, debt ratio …). ).
This will allow you to be more familiar with terms often used but sometimes misunderstood.
Do not hesitate to inform us of the information that is missing in these sections. We will do our best to add it as soon as possible.