There are several interpretations in relation to the foreign exchange loan, and there are many that deal with the investment risk that hires contracting foreign currencies and in average consumers.
The truth is that this type of loan was marketed in 2007-2008 as Second “time” of multi-currents loans in this country, previous beginnings of the Euribor decline below 3% and non-stop at its downturn to date, and at the moment there is no loan of these characteristics that has come to its expiration with good resulting in the last installments to satisfy by the client.
These conditions are those that will operate in the monthly recalculation of the loan, but with the addition that we must have for constant countervalue to that variable calculation, another foreign currency and that can be from JAPAN YEN until the FRANCO SWITZERLAND. CHF. O JPY. In short, mortgage loans are subscribed to a variable interest, with the same risk involved in hiring a financial investment product, and transferred to the mortgage sector as if it were a conventional mortgage.
far as the owner of this mortgage EVERYONE knows what will happen next month with the payment of their monthly payment or if they arrive at the expiration of the loan, there will be pending debt and much greater than that assumed when subscribing the transaction. In any case, if It deals with a complex financial product, a modality of variable mortgage, which, depending on the double risk that quantifies the monthly interest payable by the client, generates a monthly surcharge, which also entails the complete ignorance of what will be paid each month. How to curb the calculation of the repayment table and allow amortization of borrowed capital is consolidating the debt.
But look! It is not advisable if you know the damage suffered so far by this type of financial product. That is to say, before deciding whether we consolidate or not, it is VITAL to know how much the amount of the damage suffered is up to the present date and see if it comes to account to raise the legal claim in order to paralyze the constant recalculations to which we are subjected, and restore the economic damage borne by these payments paid in excess, amortizing with pending debt all at the discounted interest rate, which is usually substituted for the EURIBOR AND HIS DIFFERENTIAL.