Consolidation of cash loan with mortgage – what is the offer?

It is possible to consolidate a cash loan with a mortgage, but it is associated with certain conditions. Starting from the beginning, credit consolidation is the combination of several (not necessarily all) credits or loans in one common installment, determined at a given time and amount. It is based on the fact that a particular bank pays off other obligations on our behalf, and we give him the whole amount of money together with interest fixed in a new, individual agreement, as well as credit insurance added to the whole.

It may happen that our financial situation suddenly deteriorates or we face unexpected expenses, and many installments in different banks are a huge burden. In such situations, credit consolidation turns out to be an extremely convenient solution that brings many benefits. How does cash loan consolidation work ( https://www.totalmoney.pl/kredyty_gotowkowe ) with a mortgage?

The consolidation of cash loan with mortgage – is it worth it??

Consolidation of mortgage and cash loan is a great solution of modern times. At the moment, when we have a mortgage on an apartment, a house, a plot of land or a loan on any other real estate or movable property – we try to fully meet all our obligations. It is worth noting that the fundamental principle of a mortgage is that until full repayment (installments, interest, insurance and commissions) the mortgage, i.e. what we have borrowed, remains the property of the bank and is transferred to it when we stop paying debts.

The very fact of consolidating a mortgage with a cash loan seems to be quite complicated, but in practice it looks quite different. In addition, this type of move remains very profitable and, contrary to appearances, simple. One, agreed with the bank, monthly installment, fixed interest rate, no multiple liabilities, security – all these elements are associated with the consolidation of loans. It should also be noted that the bank tries to consolidate the amount of the installment was proportionally lower than the sum of all previous liabilities, which we paid every month. Of course, repayment is prolonged in time, but it is much less burdensome and overwhelming to our monthly budget.

Consolidation of cash loan into mortgage – what are the requirements?

Consolidating a cash loan into a mortgage comes with a few additional requirements. With this type of operation comes a change in the financial terms of the loan. Cash loans generally have a much higher interest rate than mortgages, so it is crucial that you strive to lower this amount. Besides, the consolidation of these two forms of credit is to extend the period of credit, so everything becomes much more convenient for us, more transparent. Cash loans are usually granted for a rather short period of time, currently up to 10 years. In the case of mortgages we can talk about even 30 or 35 years.

It is well known that in the case of consolidation, lower monthly installments and lower interest rates, a longer term of the agreement and thus a reduction in total costs – all have a positive effect on our situation. It is certainly worth to deeply analyze your decision, because our debts and our future, related to the repayment of debt are at stake. Nevertheless, the consolidation of both mortgages and classic cash loans is an excellent option when you want to balance your expenses, when you cannot cope with your debts and when they are too much of a burden or a kind of obstacle for you. If we have any doubts, we can boldly go directly to a bank branch or use the bank’s website and hotline. Let’s remember that advisors at every stage will dispel our doubts, providing us with full-scale, top-quality, assistance services. Do not be afraid of banks, because nowadays they are a full guarantee of care, comfort and also safety.

How to consolidate a cash loan with a mortgage?

Reviewing the offers of consolidation, we must pay special attention to several elements if we want to get the best conditions. First of all, the most important issue is the lower installment, which is the main goal of the consolidation loan. The first thing we need to do is to choose a period of time for which we will be able to pay an instalment that is adequate to our income. Remember that the longer the repayment period, the less the monthly payment will be in connection with the loan installment. Additionally, it is important to check the RRSO. This is the most important indicator, in which all the credit costs are included. The less the RRSO is, the lower total cost of credit we will pay. Not without significance is the interest rate of consolidation. Also in this case it is worth finding an offer where its amount will be competitive. However, it may happen that one bank will offer a lower interest rate, but a higher APR than the next. In such a situation, if you want to reduce costs, choose an offer with a lower APR and a higher interest rate.