What consequences does it have on the mortgage to request a deficiency?
After its apparent advantages, the lack is total or partial, has important repercussions on future fees as the monthly fee increases. In partial lack, we will have to amortize the same capital for a smaller period of time; In the total lack in addition to the deferred capital, the interest we do not pay during that time will also be added to the debt.
What is the lack of a mortgage?
Some mortgage and personal loans offer the possibility of paying for a period only the interest generated, without having to amortize capital, this is the partial lack . In some specific cases, the possibility of not paying anything (interest or capital) during a period is offered, which is called the total deficiency .
A period of foreclosure is very useful for those who have just bought a home and who, for a period of time (several months, one year, two years …) after the purchase, cannot pay the entire payments The mortgage fee.
It is also very useful for example for students who want to finance their studies and who, during their completion, cannot pay high monthly fees.
However, it is important to keep in mind that the fact of not paying the entire loan installment for a few months, increases the amount of the installments after the period of lack. What in total increases the total cost of the loan.
With the deficit loan calculator you can compare the total amount you would pay with and without partial deficiency.
What is the lack of capital and the total lack?
It may happen that during this first time in which debt is not amortized, interest is paid periodically as they accrue and with the agreed periodicity: we are referring to loans with partial or capital deficiency .
When during this first period no payment is made, we are facing a total lack . In the latter case, accrued and unmet interest will accrue to the starting capital (interest capitalization).
What is the lack of principal?
It is time during which the loan holder pays only interest, without amortizing capital. This way you can reduce the amount of fees.
Is it worthwhile to apply for a mortgage deficiency?
Requesting a period of lack from the bank allows us to defer payment of the mortgage payments for a certain period of time or, at least, considerably reduce their amount. Keep in mind that in the long run this alternative may cause you to have to pay more interest on your loan.