Unless we are financial experts, there are many banking terms that tend to confuse us and generate more doubts than solutions.

In the world of banking and finance, there are a number of products that are very beneficial as long as we have all the information at hand.

Generally, having the assistance of a team of professional advisors such as BULL MORTGAGE, helps us to find an efficient and appropriate guide for our personal finances.

One of the most frequent doubts we have is if Mortgage and Mortgage Guarantee Loans products are the same.

​

Mortgage

​

A mortgage is a type of financing whose sole purpose is the acquisition of real estate. The financial institution issues an amount corresponding to the total or partial payment of the sale price of the property in the name of the financing holder or seller of the property.

This type of financing implies the monthly payment of a part of the financing, adding interests and a series of financial commissions, during a number of years, which are fixed between the parties.

​

The guarantee that the entity receives as a guarantee of payment is the property, for which the financial entity can exercise a recovery with a consequent eviction, if the conditions previously established are not fulfilled.

The financial entity establishes what is known as a "reservation of title" and which may contain a condition that prevents the sale of the property without the prior authorization of the financial entity.

​

In order to receive a mortgage, a series of previous evaluations must be made, concerning our payment capacity, market value of the property, replacement value in case of liquidation and other factors.

In general, mortgages are designed to be long-term financing, with preferential interest rates and favorable conditions for the borrower.

​

Mortgage-Guaranteed Loan

​

One of the characteristics of the modern financial system is that financial entities request a "collateral" or a guarantee that guarantees that the requested amount will be returned in its entirety.

Many of these guarantees are based on assets that equal or exceed the amount requested in the loan, which will be appraised directly by the financial entity.

​

When a real estate property is established as a payment guarantee, they are called Mortgage Guarantee Loan or Pledge Guarantee Loan.

The purpose of the loan can have as many purposes as we can imagine, they are credits with industrial, commercial or personal purposes. The financial entity can request a detailed explanation about the destination of the funds to be granted, as well as other financial information that it considers of importance.

When you want to apply for a mortgage loan, the most important thing is to know how to choose the right type of credit for our project and for this, the best thing is to go to experts like the professionals at BULL MORTGAGE, who will assist us at all times to obtain the greatest benefits.