Oct 6, 2011, 5:44 AM
Post #1 of 1
Good Morning All,
I have found a piece of property that I might like to invest in for a rental property. I m not at this time seeking any advice on rental properties, but I am seeking some information on bank loans and how they work here in Mexico.
When one applies here for a loan for a property with a home on it, what does the bank use for collateral? Are there different kinds of such loan and if so what are they? Roughly what are the interest rates here and is there an insurance scheme of some kind for the loan. Can one pay off the loan early without a big penalty? Now that the peso v dollar seems to be in the favor of the dollar, my thinking is that even though the interest rates are higher here, at this time maybe the offset would be a plus factor in deciding on a loan or not. Would now be a prudent time to think of such a venture (not renting but buying property)?
I would like to hear some ideas from those in the know personally. Please do not stray from the subject at hand. Thanks in advance for any ideas or knowledge you might share.