Real estate loan: must you borrow or pay cash all or part of the property?

 

 

Some French people are thinking of paying their property for cash, using savings or a sudden influx of money, but is it all the more interesting to make a bank loan? Response elements.

Real estate loan, borrow or pay cash

The home loan can solicit a bank to obtain a large sum of money as part of a real estate purchase. Simply, some borrowers have managed to put aside, either over the years, or during a sudden return of money, which may be linked to a sale of a first real estate or an inheritance. The question of whether it is more interesting to buy a mortgage or pay cash becomes essential, because a bank loan will incur fees and interest, while a cash payment will allow the acquisition of the property without debt.

The answer will simply depend on the project buyers, that is to say that a French who simply wants to buy real estate and that he has the necessary amount on his account will not be interested in using a Bank loan. On the other hand, a consumer wishing to acquire a patrimony made up of several real estates will rather be interested in applying for the mortgage when rates are low to buy his first real estate, then invest with the money set aside in a second property, intended for rental or a second home.

Bank loan with partial contribution

The contribution is a recurring issue in a real estate purchase, it is precisely the first question of the financial adviser who will study a request for home loan. The contribution can have two interests for the borrower, either to allow him to inflate the amount of his loan and thus buy a house or a larger apartment, either to pay part of the interest and to borrow less. This choice is up to the borrower but any bank advisor will advise his client to preserve a portion of savings for unforeseen or possible unscheduled work.

As part of a real estate purchase combining home loan and savings for the purpose of buying larger, we must be careful with property taxes and housing taxes that can sometimes be important in some municipalities of France. It is a question of buying a real estate which is in relation with the means of the purchaser and thus to invest with prudence and mastery. The bank loan makes it possible to smooth a sum over time, while keeping the good management of its finances.

Simulate and obtain estimates

The comparators make it possible to obtain loan estimates according to one’s personal financial situation and in particular the money available to buy a property. The idea is therefore to inform the buyer of the conditions of borrowing with a home loan, knowing that if the amount to be borrowed is less than 75 000 euros, it will then be necessary to subscribe an affected consumer loan, this who can avoid any mortgage or bond guarantee. It is therefore advisable to conduct a free simulation online to quickly have knowledge of current funding solutions.

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