Credit for 120 months financing period.

Not an easy decision

Not an easy decision

Borrowers and lenders struggle equally with the 120-month loan. Binding to each other for 10 years is a difficult risk to calculate. Financing is not a real estate loan where the value of security is expected to grow continuously. It’s about financing a consumer wish or rescheduling. Conceivable security, such as a beautiful new car, expire within the 120 months of worthlessness.

From the lender’s perspective, only the borrower’s income security can ensure the repayment of the loan. In the past, long loan terms were primarily reserved for civil servants and civil servants. Nowadays it’s no longer like that. The credit market has adjusted to demand. Long-term consumer credit is sought and found. If, for example, 25,000 USD are to be financed with the loan for 120 months, the loan comparison shows five providers.

However, only a bank offers fixed-rate interest rates with this long term. LCB Bank would grant all applicants qualified to lend 5.89 percent APR. Despite the low interest rate, three years ago, a comparable loan would have cost around 7.5 percent, borrowers should not make rash decisions. A look at the overall financing costs shows how expensive it is to finance in the long term even when interest rates are low. 7,910.91 USD would cost the financing of 25,000 USD in our example.

Advantages and disadvantages for borrowers – consumer loans over 120 months

Advantages and disadvantages for borrowers - consumer loans over 120 months

The advantages and disadvantages of long-term financing are closely related. Financing a 120-month loan means paying off large amounts of loan in small installments. The model sounds particularly interesting for borrowers willing to reschedule. A pooling of all existing liabilities would bring “order” to the finances, only one credit rate would have to be serviced.

At the same time, long-term debt restructuring could result in noticeably more liquidity in the household budget. Because the usual consumer loans are repaid in a much shorter time. The rate for the long-term loan is therefore always significantly lower than the sum of the installment payments currently to be paid. The only risk is what the income situation will look like in a few years. Can the rate still be paid safely?

All important questions and disadvantages can be summarized under “Life risk – future”. Because nobody can look into the future. What about sickness or unemployment? Would there be a 10-year promise to pay under these circumstances? Does it make sense to hedge against credit risk with a residual debt insurance? Or is it just the 120-month loan that could make the RSV superfluous.

Take out a loan for 120 months – no credit insurance

Take out a loan for 120 months - no credit insurance

Residual debt insurance can offer insurance protection against general life risks. Compared to short terms, the high risk of taking out insurance in the event of unemployment, illness or death makes the RSV more expensive for long-term loans. If the loan is “sewn on edge” from the installment amount, there is still no reasonable reason not to insure yourself. It is better to pay significantly more than to go under in debt due to illness or unemployment.

Risk insurance becomes dispensable if the 120-month term was deliberately chosen to avoid an RSV. This option arises if the rate height “sewn on edge” would allow a significantly shorter term. It is important that the rate is calculated correctly so that the savings model works in an emergency. It must be dimensioned in such a way that payment remains possible even with sick pay or ALG 1. Nevertheless, the full term should of course not be exhausted in order not to drive up the financing costs.

The maximum rate charge serves as the basis for calculating the standing order on a savings book. Maximum rate debit minus the amount actually paid results in the savings rate. Most credit institutions grant the right to a free special payment of any amount for a loan for a 120-month financing period. You exercise this right once or twice a year.

If everything goes well, you as the borrower are neither ill nor unemployed, the loan will be paid off much faster than originally agreed. If the income situation changes undesirably negatively, the savings rate is simply that long. Due to the agreed low monthly payment, you will still not experience payment difficulties.

Lifeline debt rescheduling

Lifeline debt rescheduling

A loan for a 120-month financing period can bridge financial distress through new, lower installments. If, in this case, the credit rating is probably bad, the procedure is very delicate. We advise you to get expert, free and independent advice from a non-profit debt counseling center.

A loan for 120 months as risk financing can currently cost up to 10 percent effective interest. Paying “only” for the interest is not the point of an installment loan. With professional support and free of charge, it is simply safer to make the upcoming decisions.

Instant credit even without work – is that possible?


Getting an instant loan even without a bank job is a difficult task in many cases. The banks only grant their loans if you are convinced of the applicant’s creditworthiness. In addition to information from Credit Bureau, the criteria for sufficient creditworthiness are proof of an unlimited employment relationship. If an instant loan is applied for even without work, the applicant must convince the bank with other guarantees that he will be able to repay the loan.

No job doesn’t necessarily mean no income

No job doesn

If the applicant can prove a certain amount of income, for example through rental income, banks are quite willing to grant an instant loan even without work. A bank is not necessarily about a fixed employment contract, but about a fixed and regular income. This can also exist without work.

Social benefits such as Cream Bank, sickness benefit or parental benefit are non-attachable income and are therefore of no interest to the banks. Anyone who can only show these benefits should endeavor to have a guarantor for the loan.

Credit Despite Social Benefits?

Credit Despite Social Benefits?

If you only have social benefits, you should carefully consider whether a loan is really necessary. Banks have your policy not only for their own protection, but also to protect borrowers. The loan must be repaid through the monthly installments. This monthly charge can be very difficult for recipients of social benefits.

The loans should definitely have a long term, so that the monthly installments are as low as possible. If there is no other way, there is the possibility to get an instant loan even without work if the applicant can show a surety.

He agrees to guarantee the loan. This means that he steps in and pays the installments as soon as the actual borrower does not pay his installments. To be accepted by the bank, the guarantor must be creditworthy. So he must have a regular income, must not have negative entries with Credit Bureau and should not have any large loans to run so that he can still pay the installments in an emergency.

Beware of false promises

Beware of false promises

Often, an instant loan is advertised on the Internet even without work, which should work without further security. Loan seekers should be careful here. If fees are charged, just so that the application for an instant loan can be checked even without work, this is a sign of dubiousness. You should stay away from these offers, because in most cases the fee is collected but the loan is not granted.

Home loan for local government officials

France has many civil servants within its workforce, including the local civil service, these professions attached to regions, municipalities, and departments. The agent of the public service has the advantage of being well seen by the banks, in fact, the status of civil servants reassuring the lenders and even allows them to grant more attractive conditions than for an employee of the private sector. The reason being notably linked to job security and above all to the payment of salaries, the advantages granted to territorial officials may enable them to embark on a project to purchase a property.

It is, therefore, necessary to file a request with the banks specifying the nature of his project, namely the purchase of a house, an apartment or the construction of a new house. The nature of the project will make it possible to define the needs in terms of funding but also to propose a tailor-made solution for the civil servant. On the bank side, the main borrower must be a civil servant in a titular capacity or benefiting from a permanent contract. A co-borrower (spouse) can be taken into account to increase the capacity to borrow.


Which bank for a territorial official?

home loan

Many banks offer advantages and especially exclusive offers to state agents. If some naturally position themselves as banks dedicated to civil servants (example: BFM, CSF), others will grant equally advantageous conditions without necessarily communicating about them. It is for this reason that it is strongly advised to carry out a comparison of the offers of mortgage loans to profit from the best conditions on the market, without forgetting the conditions of direct debit. Applying for a mortgage loan simulator online is, therefore, the best solution to compare the proposals.

If the rate (APR) is important, we must not forget the repayment period, the type of guarantee offered (deposit, mortgage), and choose borrower insurance. The loss of employment guarantee is often not an obligation for public officials and, moreover, territorial officials. Care must, therefore, be taken to study the financing offers and, if necessary, call on a mortgage broker offering tailor-made procedures for civil servants.


Simulate your mortgage now

home loan

No need to schedule an appointment with an agency, it is possible to apply for a mortgage and receive several proposals now. Just use the simulation form, taking particular care to specify the information relating to the borrower’s situation but also at the level of the real estate purchase project. The steps can be taken before looking for real estate or after signing a promise to sell (or sales agreement). Note that the online simulation is completely free and does not require any commitment.

So it is not possible to apply for a mortgage without savings?

Having a home of your own is a dream that many see truncated by not having enough savings or liquidity. The normal thing before venturing to ask for a mortgage is to have a previous economic mattress, however that does not mean that it is essential to have some previous savings to request a mortgage loan. We tell you all about asking for a mortgage without savings.

What is a mortgage?

What is a mortgage?

A mortgage is a mortgage loan granted by financial and banking entities with the purpose of financing the acquisition of a home or property. As it is a financing with high capital, the requirements and conditions are stricter than in a conventional loan.

New mortgage law: necessary measure for the economy

Previously, mortgages had a series of associated expenses that made the loan more expensive. Therefore, it was necessary to have extra liquidity to be able to assume these extra expenses. However, this scenario has changed with the new Mortgage Law. One of the notable improvements in this new regulation is that all the processes of requesting a loan for the purchase of housing are regulated in a safer and more transparent manner.

Request a mortgage without savings; recommendations

Request a mortgage without savings; recommendations

It is recommended that when you go to subscribe your mortgage credit do not base it solely on economic issues, it would be best to take into account other aspects. Financial institutions focus on two aspects when granting loans of this type: the ability to pay and what the real guarantee is worth.

Buying a home always carries a series of responsibilities and risks that must be taken into account. Therefore, counting savings and liquidity support is always convenient to avoid falling into debt and to meet the monthly installments.

Despite having periodic income, it is advisable not to use more than 35% of these for the payment of the monthly fee. And on the issue of linkages, we would only have to accept those that are of our interest and serve to lower the interest rate.

How to request a mortgage without savings?

How to request a mortgage without savings?

First of all, we must know that the mortgage loan is a long-term payment commitment and will affect our daily economy . You should keep in mind that the greater the capital and the longer the repayment time, the more the amount to pay for the loan will be more expensive.

To apply for a mortgage you must have demonstrable stable income and not be on any type of delinquency list. If you meet these requirements you can go to the banking entities to apply for the mortgage loan, either physically or by applying for the mortgage online.

Requirements for new mortgage loans

Due to the foreclosures that happened in times of economic crisis, they have made financial institutions set more stringent rules and requirements before requesting a home purchase loan. In general, only mortgages are given that cover 80% of the appraised value of the property or the sale, always the smaller of the two. Therefore, in these cases it is necessary to provide savings of between 20% or 30% of the value of the appraisal.

So it is not possible to apply for a mortgage without savings?

So it is not possible to apply for a mortgage without savings?

However, it is true that some banks offer 100% financing of the home if you buy a property that they sell themselves. In these cases it would be easier to apply for a mortgage without savings, since in addition to the new Mortgage Law .

From Hank Morgan we recommend that if you are going to apply for a mortgage without savings, you should keep in mind that you will have less chance of being granted it . In addition, you will have to have sufficient economic capacity to be able to face the monthly installments in a responsible manner and without falling into debt.