It is very possible that you have ever been confused when you have been told about a Mortgage Credit and a mortgage, due to the similarity between these concepts. In fact, in both cases it is a money loan, usually with interest, which you must pay over time. However, there are three very important differences that you should keep in mind, especially if you are thinking of requesting one of them.
In a Mortgage Loan, the debtor generally responds with all his assets, but in turn the lender has no preference over any of the assets that comprise it. In other words, in the event of default and a lawsuit is necessary, all of the defendant’s assets go to a kind of common fund, which is distributed proportionally among all creditors, who usually do not recover all the debt. On the contrary, in mortgage loans the loan is guaranteed with a specific real estate, over which the creditor has preference. Thus, if it goes to trial, the property is auctioned and with what is obtained, the beneficiary of the mortgage will be paid first.
For a credit to be valid, it only needs to be in writing, in a private document. On the contrary, for a creditor to be able to assert the mortgage guarantee, the respective contract must have been granted by public deed before a notary, and then it must be registered with the corresponding Real Estate Conservator according to the location of the property that is given in warranty. If this is not done, the loan becomes a common credit, without any preference.
Terms and interest rates
From a practical point of view, one of the consequences of these differences is that if you are going to apply for a loan to buy a home, for example, the bank will not grant you a simple loan, but will require you to make a mortgage in its favor. About this. However, this has its advantages. In effect, it is normally granted for a longer term and the mortgage loan rates are usually lower than that of a simple loan.
In conclusion, a mortgage must meet certain requirements that do not have a simple credit, in addition to giving the creditor a preference and in turn the debtor gets better conditions in exchange. Remember that a good Mortgage Credit is one that you quote intelligently. In Compare you will be able to find a Credit to suit you, simulate your interests, operational expenses and make the best decision. What are you waiting for? make a smart purchase!