The consolidation of property is one of the cheapest options that there are currently in the market. Consumers can use their home as collateral with the bank to get credit for smaller interest.
With the property as insurance for the payment of the loan, the institutions lower the value of the fees.
The interest is more in account than in the case of the revolving credit card, overdraft and personal or payroll loans. With this benefit, the modality becomes a good option for those who want to reorganize their finances, achieve dreams or personal goals and not drown in debt.
However, do you already know if consolidation property is worth for your situation? It’s time to know the pros and cons to make the best possible decision.
Smaller interest is the biggest advantage of consolidation the property.
When Is It Worth It To Do Consolidation Of The Property
This line of credit is still little used and is not so popular in Brazil, but it is worth knowing the advantages of consolidation the property. The interested party can count on a great amount of money borrowed, since the banks arrive to release up to 60% of the total value of the property.
It is also possible to draw up a long payment term, with up to 20 years.
As the use of the money is free, the consumer usually finds three great utilities. This modality helps in debts that have gone out of control for the client to take them off by paying lower interest with the long term.
Reforming or enlarging your own home is another useful application because you have the money to do the works and with the benefits of the size of your budget. For an entrepreneur who wants to expand their business or invest, the option is also attractive for their facilities.
Planning on Property consolidation
Clients interested in looking for an institution need to think about their planning. It is worth considering in the consolidation of the property its ability to pay the installments, since the property given as collateral is with the bank and, in case of delays, can be taken and auctioned.
Despite all the benefits, every loan involves risks and can turn out to be a bad deal. You need to be aware of the conditions and requirements before hiring the service.
Make planning for consolidation the property worthwhile.
Have a clear goal to set the values for that situation. You should keep in mind your real need not to borrow more money than you intended for your projects. Be careful when picking up this loan line to buy a new home or a car. Analyze the investment, whether it is risky and whether it is the best decision.
For business owners, it is important to have a business plan for borrowed money to generate returns.
What value is worth in consolidation the Property?
The consumer can not forget to think if his need for a loan fits the profile of this modality. Despite the chance to get lower interest rates, if you need $ 30,000 and your house has the value of $ 500,000, it is worth evaluating whether consolidation the property is the best way.
After all the equity is much higher than the amount you need to give the property as collateral to the bank. Another aspect is the payment time. If it is too short, it may not compensate for the work of alienating the property from the institution.
But usually, if the consumer wants to take a large portion of money and for a reasonable time, putting the property as collateral will help in interest and will be a good alternative.
Main documents required for Property consolidation
- A copy of the RG and CPF is required,
- wedding certificate,
- proof of income and
- residence on behalf of the person requesting the consolidation.
For the property to be offered as a guarantee, it is necessary to:
- Certificate of registration of the Property, that is, document that has registration of the property on behalf of the client.
- Copy of the IPTU is also required.
- The other documents will depend on the institution that will contract the consolidation.
Finally, real estate consolidation is a good option for many, when you do not have any options, mainly because of their lower rates than other loans.