Tag: shame

Commission

Mortgage amortization is the event in which who has a debt with a bank by having obtained a credit in such entity and to advance a greater amount which should give monthly and in such a way to avoid payment of certain interests that are generated as more time passes, as was mentioned earlier a top debt credit, from which performs a mortgage amortization. Similarly the concept of mortgage amortization is used in other specific cases, so we can talk about repayment mortgage at the moment in which the monthly fee that should be given to the financial institution in respect of the payment of the credit although this payment not exceeding the fee which is customary to give commonly is doneIn short this way of using the concept of amortization of mortgage can be reduced to make the usual payment to reduce the balance in favour of the Bank; the other way in which we can mention the concept of amortization of mortgage, is in the event you want to make the repayment or cancellation advance mortgage, such case involves the total cancellation of debt that you have with your financial institution, in that eventuality with total mortgage amortization you would rid the credit with the Bank; the other way in which you can use the term amortization of mortgage, it is the way in which I mention at the beginning of the article, which is to perform an amortization of mortgage in a partial manner. When making a mortgage amortization in the way of normal credit to debt do not have any consequence a part of the common development of the relationship between the financial institution and the customer, but when it comes to the realization of mortgage amortization purposes amortize the debt in a superior manner to the normal fee in other terms would be performing a partial mortgage repayment – or when it performs a total way mortgage amortization, certain consequences with respect to credit, are generated in the following manner: for the amortization of mortgage in a partial manner a Commission is generated due to which the financial institution does not He hoped that this should happen, so two possibilities are generated, the first is that the periodic fee is reduced and will keep the same term–in such situation it does absolutely nothing in favour of whoever does the mortgage repayment, by the idea of this is to reduce the payment of interests and to continue with the same term to be generated the same interests as extra – has become no fertilizerthe second option is to reduce the term of the payment of contributions and it continues to pay the same amount in the periodic installments which if it is very beneficial for the customer therefore is would produce the opposite effect to the other option and reduced the total value of the mortgage-payment; with respect to the Commission it is a penalty imposed by law, but on certain occasions do not charge them or they are of low amount. Regarding the total mortgage amortization, what generates is the termination or cancellation of the credit that is had with the financial institution, in such way the interest payments will be reduced by a significant amount and thus the Bank loses so money is expected from the outset this fact, therefore commissions in this case are more rigorous, always they are paid and the value of interests can range from 1% of the total credit to 4%.