Differentiated interest rate, smaller installments and long-term repayment: these are some advantages that explain why the home equity loan is worthwhile.
In addition to these benefits, the applicant does not need to prove the destination of the resources, that is, there is total freedom to use the credit. The ease of obtaining it has also attracted a lot of people to the sport, as it avoids bureaucracies that delay the release of the money. If you want to know more about the rules of operation and the benefits of home equity, be sure to read this post and find out how CrediPronto helps you get it!
Understand what a home equity loan is
Also called Credit with Property Guarantee, the home equity loan is the ideal option for those who want to “put the house in order”, especially in times of economic instability. This type of credit can be used for a variety of purposes – personal or professional. That is why there are so many people using this modality since there is no need to justify the purpose of the money.
Basically, it works like this: the applicant’s property is given as a credit guarantee so that the asset is then sold to the financial institution. However, this does not mean that you will lose ownership of your assets: the bank will only have indirect ownership of the property. Thus, if the debt is not honored, the property goes to auction.
Therefore, having good planning and knowing exactly the limits of your budget are fundamental aspects before applying for a home equity loan. Otherwise, you will put your equity at risk. That is also why the advantages of the sport are enormous. After all, the bank understands that if someone gave their own property as collateral, it is because they will actually pay the debt within the established term.
Find out how the modality works
The main rule for applying for home equity is that the property given as collateral must be in the applicant’s name. In addition, the property cannot have debts or legal issues. Thereafter, the other criteria are left to the financial institution in question. However, normally, the process is agile and requires only the analysis of credit and the conditions of the property.
As we said in the previous topic, there is no need to prove the destination of the resources. There is total freedom to use credit, with some common situations being the payment of previous debts, the investment in a second property or even the opening of the business itself. There are also those who apply for the home equity loan to pay for their children’s college or to make that dream trip alone with friends or family.
See its main benefits
In order for you to know if the home equity loan is really worthwhile, you need to know the benefits that are offered. Therefore, we will show the main ones in the sequence. Check out!
Differentiated interest rate
We know that the most common type of credit in Brazil is personal loans and that this type is responsible for a significant portion of default rates in the country. This is due to the interest charged on this option, which is usually very high. Home equity, in turn, has much lower interest rates, which are among the most competitive in the market.
On average, this rate is usually 1.25% per month or 15% per year, which represents a very significant difference compared to other credit modalities. In fact, another advantage is that the offer of credit tends to be much higher, and may even reach 50% of the value of the property given as collateral.
Smaller, fixed installments
In the home equity loan, the Price Table is generally used for debt repayment. This means that the value of the installments remains constant, which is very interesting, as it prevents you from having to pay very large amounts in the first installments of the contract.
In addition, it is advantageous for a simple reason: knowing for sure how much you will pay in each installment and for how long, it is much easier to keep track of the budget and make sure that that amount will fit loosely in your pocket. Thus, your property is also risk-free.
Another indisputable benefit of the home equity loan is the ample payment period, which is usually much longer than conventional loan types on the market. This term varies according to the institution, but, for you to have an idea, in some cases the contract can reach 180 months, the equivalent of 15 years. In personal loans, the term does not usually exceed 5 years.Stay on top of how CrediPronto can help
If you have a property in your name and you need extra credit in an easy, fast and practical way, home equity can be the ideal solution. But be careful: we emphasize the importance of being well advised in this process, not least because it is your assets that will be at stake. Therefore, having a specialized company is the first step in making a secure and bureaucratic-free application.
At CrediPronto, you will find well-prepared and experienced professionals to assist in the step-by-step of the process, ranging from the analysis of the documentation to the release of the credit. Aiming to speed up the transaction so that you can enjoy the money as quickly as possible, the home equity loan at CrediPronto is done in just four steps. Are they:
- loan application;
- credit analysis in 24 hours;
- legal analysis of the documentation;
- issuing and signing the contract.
Is it or is it not much more practical than you imagined? In addition to the advantages already mentioned of the home equity loan, having a team of specialized professionals at your disposal to guide the process will make the transaction even more agile and secure, with total protection of your assets.
You will also be able to take all the doubts with our specialists at any stage of the request so that you feel totally confident to continue the operations and get your dreams off the ground.