Personal payday loans and mortgages: all the differences
Among the many stages of life, the purchase of real estate is undoubtedly the one that most people particularly care about. When making a decision of this type, in fact, it means that adequate economic stability has now been achieved.
Furthermore, it is finally possible to leave the home of one’s parents or to stop paying that rent which weighs heavily on one’s income and which in the end is seen as a real loss of money.
In short, if you have decided to buy real estate, we can only be happy for you, an important step that you have finally managed to achieve! It is also true, however, that you will necessarily have to go to the bank, to request a personal payday loan or a mortgage, preferably a mortgage without the advance of course.
But what are the differences between a personal payday loan aimed at buying a house and a mortgage? Let’s find out together.
The most important difference between the mortgage and the loan
The most important difference between a personal payday loan and a mortgage is the maximum value that these loans can have. The loan is, in fact, a loan that provides for rather low credit, usually below 70,000 / 75,000 dollars, while the mortgage provides for a very high credit.
As it is easy to understand, therefore, the loan is the ideal choice in the case of people who can offer a very high advance while the mortgage is ideal for those who do not have much money to offer as an advance.
Given that the loan provides a credit of up to about 70,000 dollars, it is a valid choice even if you already have a real estate property, but you want to subject it to renovation or modernization works.
The characteristics of the mortgage
It is very important to remember that mortgages, given that we are talking about very high figures, usually have a long duration, even up to 40 years. Again for the same reason, it is necessary to offer guarantees to the bank, such as a home mortgage for example. Furthermore, it is almost always necessary to take out an insurance policy.
Given that the mortgage is a slightly heavier loan to deal with, it is obvious that the banks need some time to decide whether to offer it to the customer or not. In fact, it is difficult to have an answer to your request in the day. It is necessary to wait at least a few days. It is also important to remember that it can take many days to get credit on your checking account, even up to a month of time depending on the case.
Finally, those applying for a mortgage can take advantage of important tax breaks, given that most of the interest can, in fact, be deducted from taxes.
The characteristics of the loan
Since the loans have rather low figures, they have a short duration, even just a few years, and do not require particular guarantees. Furthermore, usually, except in rare cases, it is not even required to take out an insurance policy.
Given that the loan is a financing that is light enough to deal with, banks usually do not need to think for a long time about the answer to be given to the customer, a response that often arrives within the day, or at most within 48 hours.
Even to get the credit on your current account, you don’t have to wait very long, even in this case often 48 hours are more than enough, at most a week in any case.
Finally, it is important to emphasize that those who apply for a loan cannot, however, take advantage of tax breaks.
The importance of requesting a quote
Whether you want to take out a mortgage or a loan, we strongly advise you to request as many quotes as possible, in order to be able to save money and obtain financing at the best conditions ever.
You can also decide to take advantage of the price comparison websites, which allow you to get many quotes by filling out a single form.