Mortgage Loan

A loan secured by real estate means an obligation performed by the borrower and on which the bank relies as the principal security for the loan. All the exact details can be found on the provided site.

Secured personal loan

For many, the term “secured credit” is not familiar, but very common. If there is an asset in the terms of the loan, in order to repay the loan it becomes secured. At the expense of real estate, the interest rate is reduced, but it has its potential risks, which must be read in advance.

Personal loans have such advantages:

  • They are very easy to obtain due to the inclusion of an asset in the contract;
  • even a bad credit history will not affect the disbursement of funds;
  • low interest rates;
  • no need to specify the purpose of lending.

The most common asset used for financing based on assets is a credit line.

If you want to buy a living space, but you do not have the funds to pay for this huge purchase in full, you can apply for a mortgage loan by going to a lender who will provide you with the necessary amount of money to close this purchase. Then you pay the lender each month the amount of the collateral, plus interest.

In case of non-payment of credit funds, the lender has the right to recover property to recover their expenses. This is the “secured” part of the contract, and the reason why the lender is willing to provide such a huge amount of money.

Mortgage

 Mortgage

Loans secured by real estate, is very beneficial for the lender in the first place, but it has its advantages for the borrower. It usually has favorable interest rates, and most of the mortgage interest is deducted from taxation.

A secured loan must be signed, and accordingly for its registration it is necessary to go to the bank in order for the experts to check your credit history and decide whether they can give you money or not.

A secured loan has low interest rates and can be issued for a long time. Funds can be borrowed to the maximum, which means that the lender is ready to provide you with the full amount of money necessary for the purchase of real estate. A report on your positive credit history will only speed up the transaction and bring 100% positive results.

Loan Simulator: Simulate and compare rates

If you have doubts about whether a loan is the best solution to pay off debts , remodel the house and even pay for a trip , know that a loan simulator can make your decision easier.

With interest rates varying between 0.24% and 22.30% per month, according to data from the Central Bank (BC), in the period consulted (April 24, 2018 to May 4, 2018), the personal loan may leave cheaper than other types of credit, such as overdraft .

Besides the chances of saving for the pocket, personal loans are one of the options to organize personal finances : you stay in the blue and choose the portion that fits in your pocket and does not detract from the budget.

Understand what is personal loan interest rate and how a personal loan simulator works for you to compare credit rates. Want to stay on top of everything about personal loan? Read our full guide now .

How does the personal loan interest rate work?

How does the personal loan interest rate work?

The calculation of the personal loan interest rate is done with compound interest. Unlike what happens with simple interest, where the interest rate falls on the initial value, the compound interest rate is on the current value, that is, plus interest from the previous month.

This means that the lower the amount of installments, the cheaper a personal loan comes out . Compound interest is also used in investments.

Understand the difference between simple interest and compound interest by comparing the balances in the table:

Online Loan Simulator – Easy and Fast

Online Loan Simulator - Easy and Fast

You can simulate a personal loan simply, quickly and online at Bom Pra Crédito. And the best: free!

With just a single registration, you have chances of receiving different personal loan proposals, compare rates and choose the best loan for your pocket.

Bom Pra Crédito is 100% free. Do a credit simulation online now.

Loan simulator in Excel

Loan simulator in Excel

To simulate a personal loan, use the formula VF (future value) in Excel. It’s simple and fast. Fill in the fields Rate (include the number and percentage symbol), Nper (period number in months) and VP (present value, ie amount requested in the loan request).