On many occasions, there are several doubts that arise when applying for a loan such as lack, so today we will try to explain what it is and what this may entail.
First, the deficiency is the period in which normal payments are not made and a specific period is granted for this. There are two forms of lack:
These types of loans are characterized by exempting the borrower
Total lack: These types of loans are characterized by exempting the borrower from payment (in terms of repayment) for a limited time. This does not mean, contrary to what some people might think that the financial institution offers “free” money for a while, but that the interests that occur during that period accumulate.
Currently this financial product consists of adding interest to the principal during the deficiency and from that point the rest of the loan parameters are recalculated. This is amortized by the system agreed as a normal loan, only that with this lack there is a major principal and less time to repay it.
It is very rare to find these types of loans at the moment
Currently, it is very rare to find these types of loans at the moment, although it would be very beneficial to give clients greater ease in cases such as the acquisition of a new home that initially requires a high level of investment. The most negative factor, as we have said, is that in the end of the payment of interest is greater since no debt is amortized from the beginning.
Lack of capital: This modality consists of paying the interest corresponding to the debt leaving the amortization of the capital for later. Its main advantage is that you get a smaller monthly fee over a period of time.
The non-amortization of the outstanding capital of the mortgage
On the other hand, the non-amortization of the outstanding capital of the mortgage means that the client still owes the same capital, at the end of the life of the loan more interest is paid and the mortgage payments after the deficiency are increased by having to amortize outstanding capital in a shorter period. It can therefore be a good option for specific and temporary moments of economic difficulty.
On the other hand we find the most common ones: the loans without default in which the payment begins as soon as the benefit is received.
- No categories