Business and Real Estate

Posts Tagged ‘United States’

Out with the opaqueness of variable interest rates

One of the causes of the current mortgage crisis is that the U.S. had increased the repayment of a loan with a variable interest rate was too heavy for many. In our country with such loans unpleasant surprises can not be excluded: in a worst case scenario, the monthly payment by more than 40% increase.
Partly for this reason that Test Achats wants the law on mortgage loans will be reviewed. Puts the consumer in the March issue of Budget & Legal few ideas to improve consumer protection. Two examples:
> When the borrower later a by-product at which he first promised in exchange for a lower interest rate (eg, a home insurance with the creditor) and that product later by a better replace, should the creditor under any circumstances the right to receive the interest rate of the loan to raise.
> When the variable interest rate rises, the borrower the opportunity to periodic payment unchanged by the loan period at no cost to renew. For its part, the lender may not be able to reduce the duration by up to 5 years.