Comparing housing portfolio purchase options requires a serious analysis of business variables . Of course, if your desire is to earn money on the operation.
Review of the credit figures and conditions
Many clients request a mortgage portfolio purchase without a judicious review of the credit figures and conditions. Sometimes, instead of doing a good business, they make a bad business. It’s not about luck, it’s about good judgment when evaluating. Have you already consulted?
7 variables to compare housing portfolio purchase options:
Recall before the definition of the operation. What is a mortgage debt transfer. It is an operation in which you ask a bank to lend you the value you owe to another bank for mortgage credit. With that money, you will pay the debt. The mortgage with the initial bank, the “A”, will be canceled, and the new bank, the “B”, will obtain the first degree mortgage on the real estate as collateral. That is, the debt and the guarantee of the bank “A” are transferred to the bank “B”, seeking to improve the business conditions. Suppose we already have offers from a couple of banks that would like to accept the transfer. And we have your credit schedule at hand. We will review the characteristics of each business.
- The value: The value of the credit requested from the two banks and what you owe in the bank “A” must be equal. This is the base figure of the business. It is not worth comparing $ 140,000,000.00 against $ 120,000,000.00, for example. The interest rate and insurance will be deducted from the value of the credit.
- The term: In all cases, the term to pay the debt must be the same, the same months.
- The rate: Read here a brief explanation of credit rates
- Insurance deduction and all risk: This point is very important. If in the credit you currently have, insurance is included, we will ask for quotes with insurance and without insurance. We can compare the reality of the credit and then verify if it is better business to negotiate insurance on your own.
- The monthly fee: With the previous variables verified, we will now evaluate the monthly fee.
- Administrative, tax and legal expenses: The mortgage transfer involves some expenses: We must know these values and add them up.
- Objective: This is the definitive moment. Suppose you will finish paying off the debt in 120 months. At the end of this time, how much will you have paid the bank “A”, the bank “B” and the bank “C”? Interesting? Now, let’s add the expenses and compare.
Take care of your financial history
To make the transfer decision, the figures of the “B” or “C” banks must be more interesting than the current credit. So much so that it meets your goal of making a better business. Otherwise, my recommendation will be to keep you where you are, pay each installment without fail, take care of your financial history and continue observing the conditions of the country. You don’t want to miss a good opportunity.