Common loan terms for mortgage loans

If you are looking for a loan, it is always important to know the terms and conditions of the loan. On this page we find out some of what is usually included in the terms.

What it takes to get a loan 

The bank has certain requirements for you to get an application for a Jonilage loan approved. For example, you are required to be of legal age and similar. Then of course you should have or buy a house to get a Jonilage with it as collateral. The economy must also be good enough to cope with the loan taken. This means that you should have a permanent job or similar that provides a steady and good income.

  • How much can you borrow – Since a Jonilage is divided into different parts, it is important to know how much you can get in the Jonilage and how much will be in other parts. You will also find information about the lowest loan amount you can borrow. The lowest loan amount is often around SEK 100,000 and the largest possible amount is several millions. In principle, you can say that if you have a sufficiently good finances you can lend to the house provided that it is not extremely expensive house to buy.
  • Amortization – Partly how to repay your loan but also for how long. Often you can choose a very loan repayment period on a Jonilage, even up to 50 years under the right conditions.
  • Interest rates and fees – The usual thing about Jonilage loans is that you choose to fix interest on either 3 months (also called variable interest rates), 1, 2, 3, 4, 5, 7 or 10 years. If the bank charges a few other fees for your loan, it must also be included in the terms. You can also divide the loan into several different maturity periods.

Delay rate and delay fee 

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If you do not manage the payments, it is often extra costs when the bank charges fees. For a Jonilage with the house as collateral, there is a risk that the bank will demand the house as payment for the loan. Read what applies to this.

This was a small pick of what you can read in the terms of the lenders when you apply for a Jonilage. Therefore, just see this as a small easy review. Therefore, when applying for a loan, we strongly recommend that you look up exactly what the lender is writing.

 

Incredibly poor survey by Keleydontarosas Loan about the price of SMS loans

At the beginning of December, Keleydontarosas Loan concluded with the result of a survey that showed that three out of four Swedes do not know the actual cost of an SMS loan.

I can definitely believe that many people do not know exactly what it really costs to borrow money in this way, but the investigation that Keleydontarosas Loan did is under all criticism. The headline they put on their article is “The majority of Swedes do not know what it costs to take an SMS loan”. This is important to remember now when we look at the question that was asked.

“What do you think you can pay for a so-called SMS loan if you borrow SEK 1,000 for ten months and the simple annual interest rate is 691 percent?”

The alternatives that the 1,026 people who answered the question were SEK 789, SEK 1,345, SEK 2,567, SEK 3,789, SEK 4,234, SEK 5,758 (correct answer), SEK 6,876, SEK 7,098.

Why it is an incredibly bad investigation

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This is quite easy to answer as they go out to answer the question what it costs to take an SMS loan. However, they have not asked a question that can give them an answer to this. As far as I know, there are no lenders that offer an SMS loan for 10 months, which is SEK 1,000. On the straight arm, I find it difficult to find someone who lends such a small amount of money for more than 30 days.

The entire issue of an SMS loan for 10 months does not go together

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Thus, it does not cost SEK 5 758 to take an SMS loan, but it costs that sum to take 10 SMS loans. Which is a whole other thing. That you then try to propagate that it will cost over SEK 5,000 to take SMS loans is just completely wrong. The cost is not at all at that level, provided you do not borrow to be able to repay the original loan, which is not a reasonable way of thinking. For who goes in and takes an SMS loan and does not have a plan to repay this?

At the moment it costs between SEK 0 and 375 to borrow SEK 1,000 if you look at the lenders we compare here. That it can be expensive is no discussion about, but in the way that Keleydontarosas Loan is trying to show this is just wrong. If you want to answer the question what 1 SMS loan costs, you should not ask what 10 pcs cost and then say that it is 1.

 

Loan promise

If you are looking for a home, it is a good idea to have a loan promise. A loan promise is a written document that your lender prints where they say how much money you can borrow from them.

It makes a lot easier for your own planning when you buy a house when you know exactly what housing you can afford and which you cannot afford. The loan promise also helps to show that you have the financial muscle to back up a possible bid for a house. This is something that makes the brokers much happier.

If there is bidding on a house

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It may even be that the seller accepts a lower bid if this bidder is clear with financing while another has not. Another reason to obtain a loan pledge.

Just keep in mind that a loan promise is not the same as letting you borrow exactly that amount. Things can change after you get the loan promise, which affects how much you can borrow. Therefore, the word loan promise is a bit misleading. A loan promise simply shows how much you can borrow at the moment you purchase it. Then it is most likely that once you take out the loan you will also be able to take it according to what the loan promise says, only that you can not be 100 percent sure.

The loan promise allows you to submit a bidding as the broker sees that you currently have the finances for it. Then the brokers know that things can change. Examples of things that can be changed from the time you got your loan promise are your job situation, the house and your ability to pay.

Therefore, keep in mind that you should never ever sign a contract until you have received clear from the lender that you can borrow what you need to borrow.

Where to get a loan promise?

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You can get a loan promise from all lenders who offer Jonilages. You can apply for this directly online, by phone or by running down to their office. The loan promise is not binding and costs nothing to obtain.

 

Early credit redemption, when is it possible? – Loan consolidation

Want to see the effects of a pool of credits on your finances? (only one monthly payment, reduced up to 60%, possibility of request for cash, a single interlocutor …)

Still called credit consolidation, credit redemption is a process of consolidating multiple existing loans into one.

The borrower has the possibility to buy several types of loan (mortgage, revolving credit or consumer), in order to benefit from a single loan payment adapted to his budget and accompanied by a single borrower insurance.

The subscriber also has the option of including different debts as part of his credit consolidation: family debts, bank overdrafts, tax debts, delay of co-ownership fees and much more. However, can a prepayment of a credit redemption be made?

Forms of repurchase of credit

Forms of repurchase of credit

The purchase of mortgage credit

This type of redemption concerns the mortgage. It is aimed exclusively at homeowners and is insured by the mortgage of real estate.

Your lending organization buys your loans from your various creditors to establish a single credit for reduced monthly payments for up to 25 years.

Consolidated credit amounts are generally larger than for a consumer credit purchase. Thus, your establishment guarantees the operation with your property.

If the decision has already been taken to secure your home mortgage with a mortgage, the one put in place for the redemption will replace it.

The purchase of consumer credit

It allows people who have accumulated many consumer loans to collect them in one to reduce their monthly payments. If you have a home loan that you do not want to consolidate with your credits (auto loan, personal loans, etc.), you can also use it.

Your financial institution will repay your credits to your various creditors and grant you a new loan of the amount owed. It may also grant you additional cash.

How to redeem credit?

How to redeem credit?

To perform such an operation, it is advisable to go through online comparators like ours to find the best offer.

You can also find a borrower insurance adapted to your needs. Regardless of whether you are looking for a loan buyback for your home or property loan, you will certainly find the ideal offer.

You can also turn to your financial institution or seek the services of a specialized broker.

Whatever institution you choose, you will be asked for supporting documents to study your creditworthiness. These documents vary according to the banking organizations. For example, the debt ratio, a proof of a professional activity and much more.

Is it possible to prepay your credit redemption?

 

Whether it is a mortgage, consumer credit or other credit, it is important to note that any credit commits the borrower who contracts it and must be reimbursed, whether it is anticipated or not. It is the same for the repurchase of credit.

In effect, the redemption of one or more credits may result in the payment of an early redemption penalty.

This prepayment penalty represents an indemnity for the lender when the loan applicant fails to meet the schedule and makes a partial or full refund of amounts due before the end of the contract.

Early repayment of credits

Early repayment of credits

The early repayment of a consumption credit is authorized and framed by the Consumer Code, which stipulates that the loan applicant can always make a partial or total pre-payment on his own initiative, of the loan he has received.

Since the Lagarde Act, prepayment penalties may be applied on conso depreciable loans, beyond a ceiling of 10,000 euros of prepayment for periods of one year.

Early repayment of a mortgage

Early repayment of a mortgage

For the mortgage loan, the conditions are also framed by the code of consumption. According to the texts governing this credit, the reimbursement allowance must be less than 6 months of interest on the amounts repaid at the average loan rate.

There is also a second limit, which stipulates that the indemnity must never be greater than 3% of the capital remaining due before the prepayment.

It should also be noted that the credit surrender agreement may prohibit partial early payment if the amount repaid does not exceed 10% of the initial borrowed capital.

Remember to pay attention to variable rate loans (revolving credit, mortgage, etc.) because the penalty may be increased by compensating interest.

Is it possible to avoid paying a prepayment penalty?

Is it possible to avoid paying a prepayment penalty?

There is no solution to bypass the payment of a partial or full advance payment penalty as long as it is included in the contract.

In other words, if this clause is missing in your contract, your lender can not require you to pay prepayment penalties.

It is therefore important to consult beforehand the various credit agreements (revolving credit, mortgage, consumer credit, etc.) to verify the existence of this clause.

In case of credit consolidation, this compensation is associated with the amount remaining due, and therefore with the new monthly payment.

This saves you from having to make a partial or total refund of the significant amounts during the implementation of the operation. In addition, depending on the credit institution, you have the opportunity to negotiate the fees to reduce the cost of the total costs related to the repurchase of credit.

This is a compensatory measure on the settlement of prepayment penalties.

Some important elements

Some important elements

Whatever the type of credit (revolving credit, mortgage, consumer credit, etc.) that you want to redeem, there are some important elements that you should pay attention during your purchase.

This is particularly the case with your borrower insurance, which is usually offered by the repurchase body. It should be noted that you have the possibility to subscribe to another borrower insurance than that proposed by the credit agency, which often has the disadvantage of being more expensive.

In short, it is entirely possible to repay a loan redemption early. However, supporting documents may be requested by the repurchase body before any repurchase. For example, there is evidence that you have a professional activity.