When evaluating options in a purchase of mortgage credit debt, you should consider the expenses that this operation will generate. If you have doubts about who assumes the notary expenses in a mortgage transfer, you should read this article.
What is the transfer of a mortgage loan?
The transfer or purchase of a mortgage loan is an option that allows you to get a new mortgage loan to cancel an original one. If you currently have a mortgage loan with an institution it is possible to transfer it to another that gives you better conditions.
Technically, when you request the transfer of your mortgage loan debt, what you get in a new loan. The financial institution receiving the transfer cancels the original amount of your mortgage loan debt. And you give as guarantee or guarantee of the new loan your home, which is again mortgaged.
What expenses should you assume in the transfer of a mortgage loan?
When comparing options, you should not only compare the interest rate and credit term. Do not forget to include the expenses generated by the transfer of credit, and that you must assume. These should be considered to establish the real savings that this operation will mean for you.
These expenses are:
It is life and disability insurance that covers the unpaid balance of your mortgage debt. The insurance that supported the previous mortgage will lose its validity and you must then take a new one. Sometimes, the banking institution requires that this insurance be taken with a particular insurer, in others you choose.
Natural disaster insurance
It is an insurance that covers the unpaid balance of your debt, in case the property suffers a natural loss. In some cases you can choose the insurer, in others it is determined by the institution where you transfer the mortgage loan.
The operation of the credit transfer requires the notarization of some documents involved in it. All these expenses are paid by the beneficiary of the mortgage loan. Therefore, it is your responsibility to bear the notarial expenses in a mortgage loan purchase.