The disadvantages of mortgage loan

Along with a number of positive aspects, mortgage still has a number of disadvantages. The main disadvantage of mortgage, as well as any loan, is a so-called overpayment, that is the sum of money that should be returned to the bank as an interest on the loan. Level of mortgage interest rates is high enough, in this regard, in some cases the size of overpayment may make up 100% of the whole loan sum.

Another drawback is the additional costs that the borrower must spend - payment for apartments appraisal, notary services, as well as the annual property, life and disability risk insurance. As long as the obligations to the bank are not fulfilled completely, the borrower has no the right to sell, present, change, or perform other operations related to alienation of real estate as it is pledged to the bank. Mortgage loan allows in a fairly short period of time to solve the problem of your own housing, but you have to pay for it. So, consider carefully all the pros and cons before making your mortgage solutions.