The most awaited moment in anyone’s life is to buy a property. Plan the purchase, save money for a long time, define the style of the property you intend to acquire, search for that property, make the purchase negotiations, negotiations, financing … Phew! How much, isn’t it? Therefore, knowing and being aware of all these processes is essential so that there are no regrets or future mistakes.
But, as it is difficult to talk about everything very clearly in just material, we will present some types of financing that may clarify some doubts when it comes to settling the payment. This help is fundamental, after all, it is the most important part of the process, along with the step in which we save money to be able to realize this dream. But, no more blah, blah, blah and let’s get down to business: knowledge about the most popular forms of financing on the market.
What does financing matter?
The plots. In the contract that is closed, the installments that must be paid in the stipulated period will be clearly described so that there are no doubts. Depending on how the contract is closed, installments may rise or fall as they are paid.
In all financing, interest is charged, acting as rent for the money borrowed to pay off the property. Understanding this dynamics of bank lending is essential to know which one will best fit your conditions.
To be more objective, there are three types of bank financing: SAC, Sacre, and Sistema Price. Let’s talk a little more about each one below.
It is the Constant Amortization System, making it clear how it works in the name itself. The interest rate varies from bank to bank, but what differs is that the installments are falling over time. The beginning installments are larger and buyers pay off the property more quickly, leaving the cheaper part for the end. In this type of financing, lower interest is usually paid. This guarantees more security to the bank since the most expensive part will be paid at the beginning and for the buyer because if there is any unforeseen event, the last installments will be cheaper.
Increasing the Amortization System works almost like SAC, but with some caveats. The parcels are increasing, that is, instead of decreasing they rise to a certain period, however, after that period, they decrease. In this type of financing, there is an adjustment imposed by the TR, which ends up replacing the monetary corrections.
This type of financing can be considered bad for some people because the first installments are very high and growing, but there is the advantage of being paid even more quickly than SAC and with less interest.
Less and less used and more valued around the world, the Price System installments are fixed, interest is decreasing and amortization is increasing. It is as if it were going to divide this financing into a few installments. For example: in the first month, most of the installment is related to interest, in the second, this portion related to interest is already lower.
It is always good to make reservations that the amount due is linked to the outstanding balance.