Lecture time: 1 minute and 10 seconds
Mortgage loans are a powerful tool if you're looking to invest in real estate, whether it is a house, apartment, or lot you’re interested in. In Mexico, financial institutions have designed different types of loans to be cater to their users' needs. Stay on this page and discover which type of mortgage loan is best for you.
Features of mortgage loans
A mortgage loan is given out by a banking institution with the purpose of aiding the purchase of real estate, where payment is guaranteed by the value of the property itself. This type of financial product involves a long-term commitment of periodic payments to complete the repayment of the borrowed amount plus the corresponding interest. Some features of mortgage loans are:
- They're given out exclusively to purchase real estate.
- The guarantee of payment is the property itself; if the monthly payments aren't made, collection can be against the property that has been set as collateral.
- At the end of loan’s term of payment, a letter of freedom from encumbrance is processed.
- You can also apply for co-financing, by which one or more additional institutions can participate in the loan; it's a good idea to look into opportunities to use your INFONAVIT credit or other financing plans you may have access to.
- You can take out a joint mortgage loan with a first-degree relative.
Types of mortgage loans
To apply for a loan, you must be familiar with the payment plans offered by financial institutions. There are usually two typles of financing:
- Fixed payments: In fixed-rate mortgage loans, payments are made on a monthly basis, based on a fixed installment until the end of the loan.
- Increasing payments: In mortgage loans with an increasing rate, the monthly payment amount changes with the interest rate. Through this plan you can receive a higher credit, but it is only recommended if you are certain that in the future you will be able to allocate more income for payment.
Invest in the Riviera Maya and recoup your investment
Now that you're familiar with the different types of mortgage loans and their advantages, why not take a look at our developments in the Mayan Riviera? We offer excellent business models so you can make the most of your mortgage loan, purchase a lot or apartment near the beach, and get high returns in the medium and long terms through vacation rentals. Invest now and realize your dream of living in paradise.
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