An option for those who need money to invest in their own business or pay off more expensive debt, refinancing is a mode that many customers still do not know where to find and how to do. Banks offer this service to homeowners or vehicles who want to refinance their cars or homes to borrow.
The customer must not forget that the properties or automobiles need to be in their name, settled and regularized. This type of credit is for both individuals and businesses if the operation is for your business. For financial institutions, the loan in question is advantageous in having the assets of the interested parties as collateral.
So, if the beneficiaries are unable to pay the installments and do not go to the banks to do a renegotiation, their possessions can be taken by the establishments. At the same time, as there are assets such as insurance, interest rates get lower than with normal personal loans.
Where to get refinancing proposals
All five major banks in the country have the possibility of refinancing real estate and vehicles. It is up to the consumer to research the requirements and conditions proposed by each location, check the interest, benefits and values and make a financial planning according to their income.
It is worth keeping an eye on the type of property accepted, which oscillates between residential, commercial and rural properties. The money loaned ranges from a variable minimum to a variable maximum, but up to 60% of the total good. The average term for payment can be from 1 to 20 years.
And when it comes to vehicles, the details are: the age of the car, which can be 5 to 10 years from date of manufacture; the credited money, which goes from 60% to 70% of the total price; and the average payment term, which varies from 2 to 5 years.
It is important to note that, despite lower interest rates, clients must bear two insurances when making the refinancing agreement, independent of the bank. One is for physical damage to the property and another for death or permanent disability of the applicant.
How to get refinancing release
Standard procedure between institutions, credit analysis will assess the actual price of the house or car offered as collateral and know how much the consumer can pay per month. In addition, the operation has a limit of 30% of the client’s debt indebtedness and the current situation of the CPF is also examined.
After these checks, merchants decide to release refinancing and, if approved, the money falls into the consumer’s checking account quickly within a few business days. The whole process for real estate should take 20 to 60 days. With simpler documentation, vehicle loan as collateral is faster.
Even with irregular CPF, some lenders make the loan, but the consumer needs to keep an eye, because interest rates are usually higher. There are institutions that also accept refinance unpaid vehicle, but the conditions are also different.
Real estate and vehicle refinancing documentation
When applying for refinancing, the interested party must have the personal documentation and the asset given as collateral. Usually, the client is asked for ID, CPF, marriage certificate (if married), proof of income and residence.
For real estate, the list has a certificate of registration, copy of the IPTU cover with address, property area and negative certificate of real estate taxes. For cars, however, the vehicle registration certificate and the national driver’s license are required.
Refinancing Non-Payment: How to Do
In this refinancing operation, the property and the vehicle are sold in the name of the creditor bank, which can get them if the installments are not settled. After 90 days of default, the assets are taken and will be auctioned to repay the debt. In case the market value is not reached, the consumer in debt, who will lose the property, will still have the loss.
However, the financial institution would rather you pay late payments than take your home or car. So always try to talk to negotiate a new term, installment or interest rate change.
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