Saveready Bank Mixed Rate Mortgage Credit
When it comes to interest rates, we usually hear about fixed rates and variable rates, where the fixed rate is one that is negotiated once and for the entire period of the loan, that is, it will not vary throughout it. On the other hand, the variable rate is one that changes and will be determined by the financial entity, based on market variables. What we are not so accustomed to hearing about is the mixed rate, this rate is a mixture between the fixed and the variable. One of the products that talks about this is the Saveready Bank Mixed Rate Mortgage Credit
Mortgage Credit Mixed Rate of Saveready Bank
Saveready Bank offers mixed-rate mortgage credit, where the characteristics of it are varied. Among them, it is a general purpose or freely available loan , which is usually used to pay a large debt or buy a second home. Although it is similar to a consumer loan, it is different because general-purpose mortgage loans have less interest and a longer term to pay them.
Why is it a mixed rate?
Because in the mortgage loan contract a Fixed Rate is established from the signing of the deed for an initial term (1, 3 and 5 years) and then annual variable rate based on the 360-day UAB TAB rate, plus an agreed commission . In the latter case, being variable, the interest rate is automatically modified every year . At the time of payment you have the possibility to opt for the payment of dividends with automatic charge in your checking account.
The Saveready Bank Mixed Rate Mortgage Credit has the following characteristics, depending on the topic we are talking about. Regarding prepayment, it offers two options within it:
- Decrease the value of the dividend, keeping the term
- or decrease the agreed term, maintaining the value of the dividend.
For the payment of your first dividend you have up to 1 year of grace. It also offers different term alternatives, from 6 years.
The granting of credits , as in the entire financial system, is subject to prior evaluation and approval of the Bank in accordance with its credit policies. The lowest value between appraisal amount and sale price is financed.
It is important to highlight that, taking into account the amount of mortgage loans that the market offers, the benefits of each one must be evaluated and in this case one of those benefits is that the highly competitive dividend.
On the other hand it offers convenient fire, earthquake and relief insurance, which are mandatory for this type of credit.
In this case, Saveready Bank has the following requirements to apply for a mortgage loan:
- The affiliate must have thirty-six (36) contributions.
- Have 12 last consecutive contributions.
- If you are a legal representative of a company you should not have outstanding obligations.
- Be within the required age limit (75 years)
- Not having a mortgage loan with the IESS or Bies in MORA.
Costs and Expenses of the Mortgage Credit Mixed Rate of Saveready Bank
Mortgage loans have a series of operational expenses that, in general, are very expensive, and must be taken into account when hiring them, because they are expenses that are generally not included in the amount of the credit. They are:
- Appraisal expenses: it is the associated expense for appraising the property and thus setting its value to obtain the credit (approximate cost from $ 2.5 for housing in Santiago).
- Study of Titles and Writing of Deeds : the Bank studies the titles associated with the property and writes the deed through its lawyers (approximate cost of $ 4.0 to $ 5.5).
- Notarial Expenses: they are paid at the time of the signing of the deed in the Notary (reference value of the approximate cost in Notary of Santiago from $ 3.2. This may vary depending on the location where the notary is where you sign a client).
- Stamp and stamp taxes : This tax is calculated on the Effective Loan, according to the current legal rate.
- Registration in the Conservator of Real Estate (CBR): once the deed is signed the property must be registered in the Conservator of Real Estate. The approximate reference value in the CBR of Santiago is 0.5% to 0.8% of the tax appraisal or the sale price of the property.
As mentioned, the Mixed Rate Mortgage Credit of Saveready Bank You must have the following mandatory insurance:
- Relief Insurance, (for the main debtor, guarantors and / or joint debtors, natural persons),
- Fire insurance with additional earthquake, while the obligations arising from the payment of credit remain, its cost will be included in the dividends.