Joining Mortgage and loan – When and how it is planned
When you have a loan in progress and you need financing for new liquidity, one of the first solutions that come to mind is to combine the loan and the loan. This is a very personal choice and three fundamental questions must be answered to find the solution best suited to your situation:
- Why do I want to combine mortgage and loan?
- It should?
- What advantage do I get?
Why choose to take out a loan over a loan?
Sometimes when applying for a mortgage, those who follow the practice can recommend a product such as a mortgage plus liquidity or a mortgage purchase plus restructuring. In both cases you can think of making a single contract but you are actually signing a loan contract plus a loan contract. In this way the part of the passive interests that can be deducted and there is no worsening of the “economic” conditions is “saved”. In fact, the rate applied to a mortgage purchase is much lower than that applied to a normal loan or loan. In fact, therefore, we cannot talk about the hypothesis of “union” between a mortgage and a loan.
At this point, giving the answer as to why a loan should be combined and a loan together should become simpler even when the decision is made. But first of all a concept must be clarified: this operation of real “union” occurs when a loan is requested which absorbs the part of the “loan” with the addition of new liquidity (see also Liquidity Loan ).
It is no coincidence that this is a choice that is often made when there are sudden difficulties with a mortgage in progress, and it is thought to fix things by asking for a loan that goes to cover the loan giving a surplus of liquidity (perhaps extending the duration compared to the current amortization plan).
This is normally an inconvenient choice (we will explain the reasons better in the next paragraph) and for this it is better to proceed as follows:
- review the duration of the loan, with a subrogation or renegotiation so as to extend the duration by reducing the installment and eventually complementing a loan request with more liquidity;
- ask for a fifth assignment to be added to the mortgage installment if the employment status and the sustainability of the installment permit.
What advantage do I get?
The goal or goal to be achieved is essential to make a rational assessment. Getting new liquidity must not sacrifice the principle of sustainable payments. Therefore it is essential that any choice I make, the repayment capacity is not definitively compromised (see also Compass revolving cards ). With this ‘change’ it must become easier to honor payments (or in any case no more burdensome). Therefore it is essential that they are obtained as advantages:
- more liquidity;
- installment amount to be repaid lower or at most equal to the previous one.
As already mentioned, a choice that goes to ‘touch’ a French amortization plan, focusing on a lengthening, is never convenient and joining the loan and the loan is no exception under any circumstances. With such a choice, a higher overall interest is paid (it is not the loan that adapts to the loan but the opposite happens). Added to this is the definitive renunciation of the recovery of the interest payable which is due only on the first home purchase loan.