Marrige Cogratulation Message

No use running, you must release point

When financing a purchase without work, the mortgage is paid in one installment when signing the deed of sale before a notary. The first installment includes in this case the payment of a portion of principal and interest.

However in case of house construction, major works or acquisition of property for sale in the future completion (Off Plan), payments will be made more unlocks.

bank through the mechanism of anticipation can begin repayment of principal only when the loan is fully disbursed.

In this case, or borrowers will pay only the interest expressed at intermediate to high rates of loan money made available until the release of the loan.

The period of advance is limited to 24 months for work and 36 months for construction.

However if the loan is disbursed in full before the end of that period, or borrowers begin to pay principal and interest attached to the loan when the monthly payment after the last release.

To illustrate this, let's take the example of a loan used to finance the purchase of land and construction of a house, this loan is here to 120 € 000 over 180 months at a rate of 4% to 5 with a payment each month.

The first release of 60 000 € will be held April 5 at land acquisition, the second € 30,000 on September 5. The final release of 30 000 € will be held on September 5 next year, the loan will be released in full and customers start to pay principal and interest.

	maturity after the first release	maturity after the second release	Maturity after total release Loan	Total interest
Unlocking once No advance			€ 887.63 180 months	39 € 773.40
With 36 months of anticipation	€ 200 5 months	€ 300 12 months	€ 887.63 180 months	44 € 373.40

The law imposes a phase advance for regulated loans (zero interest loans, approved loans and Ready for Accession social) and in the presence loans with smoothing.

Although interim interest add to the cost of the loan, they allow borrowers to take on rent during the construction of their future home.

Contrary to the adage "more is more along is good", more advance phase is longer and the cost of the loan is important.

Delphine, William and Laurie