What is: Mortgage substitution? Mortgage loan?

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Of what does the mortgage substitution consist? What is the percentage of substitution? And a mortgage loan?

All these and other concepts related to the mortgage management, you will find them in our financial glossary.
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  • Early amortization
  • Entire or partial return of a credit before the agreed date. One usually finds submitted commission, which changes according to the interest rate of the loan.
  • Enlargement mortgages
  • It consists of the increase in capital of the mortgage that previously we had employed. Obtaining liquidity.
  • Amortization
  • Entire or partial return of a loan, according to the agreed with the financial institution. The amortization can be monthly, half-yearly or annual.
  • A.P.I.
  • Agent of the real estate property
  • Pledge
  • Quantity of money that delivers the buying part to the seller like guarantee of which he will buy the housing in a certain term. If the operation comes to good term, the pledge is considered to be a payment the account.
  • Guarantor
  • Person who intervenes as it guarantees in a loan and that assumes the payment responsibilities in case the borrower does not face to the debt or to his interests.
  • Cancellation
  • Extinction of the mortgage for liquidation of the hanging debt.
  • Capital
  • Nominal amount of the mortgage loan. Whole of the hanging debt, without including the interests.
  • Charges
  • Limitations to the mastery of a farm. They consist in public document and register in the Record of Property. There are some examples: the mortgages, usufructs, conditions resolutorias, etc. they not all suppose economic rights and they are cancellable with the extinction of the right that they represent.
  • Habitability certificate
  • Document that he must gather if the elected farm is the suitable one for the use that tries to happen to the housing. It must be prepared before the occupation of a housing of new construction. It is essential for the securing of a mortgage.
  • Certificate registral
  • Document sent by the Property docket in which there is exhibited the situation of charges of a farm.
  • Cirbe
  • Head office of Information of Risks of the Spanish Bank, place where they appeal the financial institutions, under authorization of the client, to consult the levels of risk and slowness of the interested parties in hiring a mortgage loan.
  • Commission opening
  • Import that it is paid on having formalized a loan, in compensation to the administrative, computer expenses and of management that bears his opening. One pays for only one time and is usually a percentage on the given capital.
  • Commission early cancellation
  • Payment that is earned on having amortized prematurely a debt, for mortgage loans normally is a 1 %, for personal credits it is concerning 3 %, as it is agreed by the financial institution.
  • Substitution commission
  • Percentage that is applied on the hanging capital in case the borrower changes of entity creditor to improve the conditions in another bank.
  • Owners' community
  • Set of coholders of a building split into horizontal property.
  • Costs of the property docket
  • They are those who stem from the inscription of the mortgage in the Property docket.
  • Quota
  • Amount to pay, in which capital includes more interests.
  • Division in horizontal property
  • Division of a building in several farms register them independent, to which there is assigned a coefficient of co-ownership or participation of the whole of the building. It registers in the Property docket.
  • Differential
  • Document sent by a notary in which they represent the conditions established between the parts. So that it has juridical validity it has to register in the Property docket.
  • Public writing
  • It is the definitive contract of buying and selling that is signed before Notary and attributes the property to the buyer, who turns out to be an owner of the bought.
  • Euribor
  • Index of official reference. It is defined as the simple average of the daily interest rates, applied for the operations crossed in the term of one year on the market of interbank deposits of the area of the Monetary Union, between 64 financial institutions at major business level.
  • Farm
  • Rustic or urban property, which can register in the Property docket.
  • Deposit
  • It is the amount that is delivered on account to reserve the right of buy of a building.
  • Personal guarantee
  • Patrimony of the debtor who understands all his present and future goods. It serves as guarantee for the fulfillment of any obligation. There exists the possibility that there answers with his goods a third person who should not be the debtor.
  • Management expenses
  • There are the produced ones by the procedure and management in Notary's office, Property docket and Tax authority. They are carried out by professionals of the entity that grants the mortgage.
  • Notary's office expenses
  • They understand the fees and expenses of the notary.
  • Agency expenses
  • There are the expenses that stem from the steps of the writing, of the liquidation of taxes and of the negotiations that are carried out in the Property docket.
  • Mortgage
  • Real right that is constituted as a guarantee of the fulfillment of a few obligations contracted with a third one (loans, letters). Along with the payment of the principal one, it guarantees the cashing of the ordinary interests, moratorios, coasts and expenses derived from the possible judicial claim in case of nonperformance in the payment.
  • He mortgages Bridge
  • It is a product used in case of a person who is going to acquire a new building and who has not the necessary time to sell the current housing in the best conditions.
    The term that happens for the sale of the current housing, is one year.

  • IBI
  • Municipal valuation that burdens the property of a farm. He recovers annually and in function to the property value assigned to the farm.
  • Imposed Documented Juridical Acts
  • This tax burdens the certificates of incorporation of the mortgage loans and of the cancellation of the same ones. One must be paid for the fact of formalizing the public writing. At present, the type of applicable tax is 0.5 % of the value of the mortgage guarantee and the buyer pays it to Treasury Department at the moment of the acquisition.
  • Tax of Hereditary Transmissions
  • For second-hand housings. It burdens the transmissions of patrimony that imply a goods exchange. The applicable type is 6 %.
  • Delay interest
  • Additional interest that recovers on the unpaid quotas of a loan. It is calculated according to the days of delay in the payment, they are agreed beforehand by the financial institution and the client.
  • Reference index
  • It is composed by the value of mortgage or financial market used to check the interest rates of the loans to variable type. The Spanish Bank is in charge of establishing the official reference indexes.

    Diverse indexes exist: the MINT, that of the public debt, the Mibor, the IRPH of the Banks, the IRPH of the Boxes and the IRPH of the set of financial institutions.
  • Fixed interest
  • The nominal interest rate remains invariable along the life of the loan with independence of the changes of the mortgage market. He allows to make sure that although they should change the interest rates, they will not change the conditions of his loan, and he will always pay the same.
  • Variable interest
  • It is fixed as regards an index of reference, which evolves to the rise or to the fall as the oscillations of the market, which a margin or differential joins, there being established a periodic review of update of the index. In this form, the interest rate is checked every half year, so that the monthly quota fits to the tendencies of the market. In this case, the term of his loan will stay always fixed, changing periodically the monthly quotas.
  • VAT
  • In case of housings first hand. It burdens the sale when the one that it sells is a businessman. It is 7 % of the value of the housing.
  • Work license
  • It is a question of a permission that the Town halls grant to be able to initiate works or modifications in the architecture of a building.
  • Notary's office
  • The notary gives public faith of the writing, that is to say, it certifies the operation and it will be able to be chosen freely by the petitioner of between those who operate in the square
  • Notary
  • Professional with legal aptitude to give public faith of the acts in which it intervenes.
  • Novation
  • I change in the term or in the agreed interest rate, or both.
  • Regularity
  • It is the frequency with which he will pay the quotas of the loan; therefore we recommend to him to coincide with the regularity of his income.
  • Review period
  • It is the frequency in which the interest rate is modified when one treats variable guy as a mortgage. Normally they are half-yearly or annual.
  • Pay-off period
  • It is the period established in the loan for his entire return. It must bear in mind that the term most adapted for you must be that that allows him to pay the quotas comfortably. Therefore, the election of the pay-off period will always have to do it according to his refund capacity.
  • Mortgage loan
  • It is a financial operation for which it is allowed to gain access to the housing that you wish being able to obtain a few top financing amounts, to a few more limited enough than interest rates the granted ones in another type of loans in which the building does not remain mortgaged like guarantee of the payment of the operation as happens in this type of loans. It is formalized in public document and his rights are constituted by the inscription in the Property docket.
  • Borrower
  • Titular person of a loan, which assumes all the obligations and acquires all the rights of the contract that lender signs with the financial institution.
  • Record
  • There are the expenses generated after the mortgage registers in the Property docket. These expenses will be due to the borrower. The tax base is the "mortgage responsibility" and also there is applied a percentage tariff established legally on this base. To this they add to themselves that register the tariffs earned by the seat of presentation and the marginal notes.
  • Property docket
  • Public office that takes as a function to take the official books in which there consist all the circumstances that they affect to the farms of the demarcation corresponding to the above mentioned Record. These circumstances are the relative ones to the property: charges, transmissions, marginal notes, etc.
  • Mortgage responsibility
  • It is the sum of all the concepts that there are guaranteed by means of the mortgage (the given capital, the normal interests and the interests of delay, judicial coasts, expenses, etc.). On this quantity it is on the one that there calculate the expenses of formalization and cancellation of a mortgage.

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  •      Loans reunification
  • The loans reunification, it allows to join in the only credit the different quotas of the personal loans that we have hired. For example, payments / debts of credit card, loan of the car, mortgage, etc...
    With the loans reunification, we extend the mortgage, reunifying all the credits in her. With it it becomes possible to reduce the monthly quota on having eliminated the interests that bear the diverse personal loans.
  • Amortization insurance
  • His hiring is not obligatory but it is suitable to hire it whenever a mortgage loan is formalized. This product is designed especially for the holders of mortgage loans, and guarantees the amortization of the loan in case of death or invalidity of the holder or the holders.
  • Fires insurance for housings
  • According to the current legislation, the hiring of an Insurance is obligatory against Fires on the housing object of the loan. By it, at the moment of obtaining his mortgage credit, his Insurance of Fires is facilitated to him to the measurement. This way he will be covered in the assumptions of: I set fire, border, explosion, clean-up, measurements adopted as the authority, extraordinary risks and catastrophic consorciables, etc.
  • Mortgage substitution
  • It is the step into which we change our mortgage financial institution loan.
    With the mortgage substitution, what we want to obtain is a progress in the economic conditions of the mortgage loan (interest rate), without having to cancel it and formalize the new one.
    By means of the substitution of a mortgage loan we avoid the expenses of opening and formalization of a new mortgage.
  • TAE (equivalent annual Valuation)
  • It is the annual effective cost of the loan. It bears in mind not only the initial interest rate but also his possible reviews, the pay-off period and the commissions tied to the operation. Finally, it is the real interest rate that you will pay in his loan.
  • Appraisal
  • Certified value of the building. The ride to end a company independently specializing, as the Mortgage Law forces.
  • Interest rate
  • Percentage that is applied to the capital dependent on a loan to calculate the interests that must subscribe.
  • Nominal interest rate and real interest rate
  • The nominal interest rate is the percentage expression of the profitability of a financial instrument as regards his price. Deducting the effect of the valuation of inflation waited during the life of the same one, the real interest rate is obtained.
  • Cross-check registral
  • Cross-check of the situation of the farm in the Property docket. It is possible to do across the direct examination of the books, of informative simple note, of a certification of the Registrar.


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