70% of Swedes are the owners of their own homes, but 96% of this property is in the mortgage. This indicates the maturity of the mortgage market. The same situation is in Scandinavian countries. In monetary terms, the volume of the mortgage market is 874 billion krones according to December 2018 (19 billion Euros).
The first payment is usually 15-25% of the cost of the purchased property. 15% is a mandatory minimum. The rate on the loan for the purchase of housing in Sweden is 7% per annum. Over time, you can go to refinance and reduce the rate to about 4%. The average size of a loan is approximately € 222,2 thousands euro. The term of Thorn mortgage can be up to 50 years for a loan of 75% of the cost of the purchased housing.
It is unlikely that anyone will deny that loans are becoming a more popular form of available banking services. However, we could not imagine earlier that buying things and equipment, studying and having a rest is possible right now without saving money for many years. If you want to do this, you only need to issue a bank loan, and then pay the loan within a few years, gradually limiting yourself in everyday life.
Advantages of taking loans
Firstly, let's deal with the advantages of https://credit-10.com loan. Firstly, the taking of a loan is receiving money in a time when you need them. However, a lot of people are used to waiting for a premium or salary, or even for a long period of saving money to buy some major purchase. Then, they find out that there is still not enough money, because no one has canceled inflation.
Secondly, the family budget suffers when buying something on credit, but not much, because it is much easier to give small amounts for several months than to part with a solid amount of money at once.
A person who has taken on credit obligations, is self-disciplined and tries to remember the time when they need to make another payment on the loan. It has been recently found out that the person, who has issued the loan, tries to earn even more, thus stimulating their performance.
Moreover, there is a great opportunity to save on interest on the loan - you only need to meet the grace period and return the money to the bank before its end. Each bank offers its own grace period, but not more than 60 days. Note that the grace period applies only to non-cash payment by credit means, when withdrawing cash is not valid.
You can earn on the subject of lending and quickly pay off the debt, remaining in the black. Most banks have banned the use of the car as a private taxi, but you can also find another option to use the car. Having issued a mortgage loan, some of the borrowers rent an apartment for several years, and having received additional income, they pay the loan, much earlier entering their homes.
Disadvantages of life in credit
Now, let's move on to the shortcomings that are inherent in such an attractive banking product as credit.
There is always an overpayment, using the loan - after all, you have to pay for the use of other people's funds, and the bank is not a charitable organization. If you remember about inflation, then, of course, it is often much more profitable to buy now, even with a small overpayment.
Secondly, if the borrower defaults on the loan, the bank will punish him, charging penalties and fines. Therefore, it is better to try to make regular payments and avoid delays, otherwise the loan will be much more expensive than you originally expected.
Thirdly, it is the occurrence of unforeseen circumstances. The bank is unlikely to be interested in the situations when you lose your earnings or become ill and lose the ability to work. Of course, in this case, the insurance may be provided, which the bank will require to issue if the borrower needs a large loan. However, it can be a downside. Banks often go to meet their customers’ interests and provide them with deferred payments, but in some cases it does not help. Then, the borrower has no choice but to solve the case in an official manner or lose the property provided as collateral.
Now, you know the pros and cons of the loan. However, you have to put up with them to get what you want. This is a greater priority for many people than, for example, the overpayment for the purchase.
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