What is an american mortgage loan and how to do it?


The main difference between a US mortgage and a regular mortgage is that you can draw the US mortgage for anything. Compared to the classic consumer loan, it differs not only in the maximum amount you can draw, but also in the way of the guarantee and related interest.

If you need to borrow up to several tens to hundreds of thousands for reconstruction or other expenses, it is usually worth to draw a consumer loan. American mortgage pays off mostly when you need to borrow money in the tens of millions. And especially if you have your property, you can guarantee the loan. This is, of course, associated with its major negative side – if you run into a problem with repayment, you can lose the property very quickly.

On the other hand, this risk for the client is associated with less risk to the lender, which means that it can provide you with much lower interest on this type of loan than you would with conventional consumer loans and other non-guaranteed loans.

How much can I borrow?

How much can I borrow?

As with other online loans, American mortgages vary from company to company, both the maximum and the minimum amount you get. Generally, however, we can say that the minimum amount of US mortgages is around 100 000 dollars. The maximum usually depends on the value of the property you are planning to guarantee for the loan.

In banks, the maximum amount of an American mortgage is around 70% of the estimated price of the property and its annual interest starts at 7%. Conversely, for non-banking companies, the amount they lend to you can reach up to 100% of the estimated price.

However, interest rates and APRC are already slightly higher. For non-banking companies are often enough just a guarantee of real estate and often do not insist that clients prove their income and sometimes do not look at the register, so they take substantially higher risk that clients do not pay their debt.

If you decide for an American mortgage, be as interested in other APR loans, but be sure to find out how long the fixation period is.

How to get an American mortgage?

How to get an American mortgage?

The most important step is to choose a company you can trust and one that offers the conditions ideal for your individual situation. Our loan comparator will help you choose, you can also rely partly on the experience of your acquaintances. Conversely, discussions on the Internet are not recommended.

You can find the exact description of how to get a loan from our company directly on the profiles of individual companies. Certainly, however, you will need an ID card and, above all, an acquisition title for the property you are planning to guarantee for the loan.

The process is a bit slower than for consumer loans, because in addition to checking your creditworthiness and writing a contract, which is sufficient for a classic loan, the next step in the US mortgage comes in the form of real estate appraisal, thereby extending the processing.

A few words about the American mortgage

A few words about the American mortgage

The American mortgage has been on the market only since 2004. It differs from the classic mortgage in that you do not have to take it only to buy or renovate the property, but you can use the money borrowed in this way for anything you like.

It has a slightly higher interest rate compared to a conventional mortgage, even if you draw it directly from a banking institution, but it is cheaper than a consumer loan.

Perhaps this loan is even more important than regular loans to properly read the contract, to determine the fixation period and possible penalties for late payment, but these are steps that we should not forget in any way.

And why is this loan called American?

In the US, loans for anything with real estate guarantees are a commonplace issue, so we took over their home equity under that name.

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