Mortgage loans are taken by banks, private mortgage brokers or online brokers. These loans are obtained by pledging property for the purpose of purchasing other residential or commercial properties. Sometimes they are even used to refinance other loans. 

Mortgage loans are usually granted for a period of 15 to 30 years. The amount of disbursement is distributed depending on the exact year, the type of mortgage and the calculated interest rate. The purchased property serves as collateral in the event of a debt. If the borrower fails to meet its payment obligations, the lender can sell the property through foreclosure. If you need mortgage loans in Paraguay you can visit this website https://www.sersa.com.py

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To ensure the borrower can make payments, there are several important points that the lender must check first. Above all, the down payment, monthly income and creditworthiness of the borrower are taken into account. 

An early payment measure reduces the lender's risk in the event of default, monthly income reflects the borrower's ability to make monthly payments, and loan yield represents the risk of the loan to the borrower. A higher credit rating reduces credit risk.

Type of loan

Mortgage interest only: With this type of mortgage loan, the borrower only needs to pay interest for a certain period of time. After this period, the loan is usually amended and a new mortgage is created. This new amount will be repaid in principal plus interest on the loan.

Balloon Mortgage: This mortgage gives the borrower a lower interest rate for a certain period of time. The period usually varies between 3 and 10 years. After this specified period, the borrower must pay the principal amount in full.