Mortgage required careful consideration
now more entrepreneurs are choosing to use mortgages, because one of the advantages is that there is no change in ownership of the mortgage situation, access to fair value of funds for investment, making money with money, in fact, devalue the mortgages to transfer risk to the Bank, and will use to maximize the value of the collateral.
1. because of the mortgage value exists, so there is no need for mandatory insurance and to provide civil security procedures, cost saving, and ownership of the collateral is personal.
2. higher loan to value mortgage, approval not only easy for banks, and lending a relatively fast time.
3. licensing, vehicle insurance programs generally do not specify, vehicle ownership and beneficiary is not a bank.
mortgage loan disadvantages:
1. While there is a certain risk, mortgage banking, after all, the value is much higher than the loan amount, if the loan is not returned on time, banks have the right to deal with the collateral. 2012 Bank lending interest rate are as follows, from six months to one year (inclusive) is 6.56%, most of the banks are floating on the basis of interest rates. 1-3 years (inclusive) is 6.65%, of course, the interest rate is mostly float. In General, the one-year interest rate is probably around 7.05%. So this kind of loans for people who have a mortgage of high-grade car users.
2. need higher than the loan collateral of large value, so this is somewhat too high a threshold for many people especially the young.