The mortgage as a long-term loan
Filing mortgages can be done in institutions financiers (leasing institutions) such as banks, mortgages, pawnshops and other funding agencies. But generally, the leasing agency that serves mortgage submission is the bank. Understanding Mortgage Debt Long Term The term of the mortgage agreement usually reaches 15 to 20 years depending on the initial agreement agreed by both parties of the creditor or the debtor. In the meantime, perhaps you also need to check out the recommended local mortgage lenders as well.
Well, already understand it, at a glance about the mortgage? Well, for more details please continue reading:
The advantages of applying for mortgage debt are as follows:
Reduce the tax cost of the mortgage-backed property.
Goods that become mortgage collateral can still be enjoyed, occupied by debtor because creditors can only claim ownership of the goods.
Repayment of the remaining debt can be paid in full when already have enough funds without waiting to wait for the deadline.
Lack of Mortgage
In addition to the above advantages, the mortgage also has a lack of side. The shortcomings of applying for mortgage debt are:
The cost of a substantial mortgage payment could exceed the original price of the property sale. Excess payment fees in the form of interest costs mortgage debt and insurance premium cost of fixed assets and also additional costs to pay notary and bank administrations.
The use of restricted assets, though still usable, utilized, and also operated but the property may not be traded, leased, auxiliary buildings, and expanding areas are also prohibited.
Time of Mortgage Agreement
As for things that affect the cessation of the mortgage loan agreement is as follows:
The cost of debt, interest and fixed asset premium has been paid in full by the debtor.
Destruction or loss of assets made in the object of mortgage debt, for example in due to natural disasters such as earthquakes, landslides, or if the object of collateral is a ship, the ship was sunk by accident or weather.
The mortgage period has expired or expired
The creditor releases or delivers the assets that are the object of the mortgage guarantee voluntarily to the debtor in question.