US mortgages are intended for those who need to borrow a larger sum of money and have the property they can pledge. Unlike classic mortgages, American mortgages are not tied to account recovery – money can be used for anything. It can be a car purchase, home furnishings or even a luxury holiday.
What is the offer of these products on our market? Can this type of loan be obtained with an entry in the register or insufficient income?
The American mortgage is offered by banks and non-banking companies at an interest rate that is higher than in the case of conventional mortgages, but lower than in conventional consumer loans. If, for some reason, a person fails to reach a US bank mortgage, non-banking companies are willing to squint.
US mortgages without a register and proof of income
Thus, non-banking companies are able to lend 50 to 80 percent of the appraisal price of the property to those who have a record of debtors or irregular income. However, the milder conditions are balanced by a higher interest rate. It pays to compare multiple offers and focus on APR, fees and sanctions. However, non-bank mortgages can be particularly risky in that the debtor can easily overestimate his solvency and lose property. To learn more about American mortgages without a registry, see this article.
What do banks offer?
Banks, unlike non-banking companies, consider carefully whether to provide a client with a credit product. It takes into account not only the value of the property but also the amount of the applicant’s income and its credit history. If the applicant fulfills the conditions, he will obtain a favorable interest rate, low monthly payments and a long maturity. In most cases, banks also allow early repayment of US mortgages.
At present, people interested in this loan with collateral can arrange this product with. KB offers an American mortgage from USD 200,000 to USD 10 million with a maturity of 20 years, which can be drawn exclusively for non-business purposes. ČS provides an American mortgage from 150 thousand to 5 million crowns and up to 70 percent of the value of the property.
Type Benefits Disadvantages Banking low interest rate, maturity up to 20 years documenting income, consulting the register Non-bank without proof of income, without looking at the register higher interest, high penalties, risk of insufficient income
American mortgage refinancing
After some time, the US mortgage can be refinanced with another company on more favorable terms. It is therefore worth checking interest rates on competing products. It can be financed at the end of the so-called fixation period, when the outstanding amount can be repaid without sanctions. Sometimes refinancing pays even before the end of fixation – the penalty for breach of fixation may be up to 1% of the extraordinary installment.