Global Financing That Doesn't Feel Foreign
In this interview:
- The difference between brokers, Mexican banks, & MoXi
- What about title search and insurance?
- Comparing U.S. financing to Mexico
- When do you make your first payment?
- MoXi is there for the full 25-year term, and beyond
Video Transcript - (Speaker: Alex Koper, CEO)
For U.S. Citizens, as foreigners in Mexico, there aren't many financing options. MoXi -a Global Mortgage Company offers solutions that are genuinely unmatched, and it feels similar to the financing you'd receive in the U.S.
There are a couple of loan brokers who will broker mortgages to Mexican banks and help foreigners navigate through the process in order to make that happen.... There's even one bank that does direct lending.
You need to know the key differences between those other options because they're the reason that foreigner financing hadn't been prevalent for the last couple of decades before MoXi came along. First and foremost, from the standpoint of security and safety, we do a lot of property diligence on behalf of our clients. We require a title search, and title insurance (in many cases), and we facilitate that process.
We also require an appraisal, and in Mexico, there are a couple of different types of appraisals. So we use a commercial appraisal to determine the value, which is important for the client to understand.
Would you buy a house in the United States without an appraisal? Probably not, right? So, why would you do that in Mexico? Would you buy a house in the United States without title insurance? Probably not. So, why would you do that in a foreign country? And believe it or not, these are the things that happen when you pay cash or when you don't work with a reputable financial institution like MoXi.
They happen constantly, and the consequences are immense. One of the other key pieces from a security perspective is the financing itself. Our mortgages are not exotic at all. In fact, people call them boring, which I think is pretty fun. That's exactly how they should be, right? So, all of our loans have a fixed interest rate. The loans are originated in US dollars, and they're serviced in US dollars via our US sub-servicing entity.
And what that means is that we get to report interest that you paid on that mortgage to the internal revenue service. So, check with your tax advisor, but you can deduct that interest from your taxes. The US and Mexico have a treaty against double taxation, and MoXi is the only one that actually services these mortgages in the United States. We don't expect clients to make a single loan payment until they actually close the transaction.
You might say, "Well, of course." But, some of the other lenders or the other mortgage loan brokers who broker these loans to Mexican banks require you to start making payments on a loan BEFORE you actually close and get the keys to that house. I know it sounds crazy, but that literally is what exists in the marketplace. This is another way that Global is very, very different.
There are no other lenders. The other Mexican bank lenders do not offer fixed interest rates under any circumstance ever. And all of our mortgage interest rates are totally fixed. You don't have the interest rate risk. You don't have the foreign exchange risk, because they're originated and serviced in U.S. dollars.
Also, MoXi is a licensed, regulated, and audited financial institution. It's a bank, really. We're regulated by the bank commission and also conducef, which is kind of like the Consumer Finance Protection Bureau in the U.S. Those are just two regulators in particular, but we're accountable to four other ones as well. Regulators require that we not only look at how we do business, how we operate, and what sort of diligence we take on a day in and day out basis with our customer information, but they also require that we monitor the performance of the asset, as long as the asset is held. So, for the entire 25-year term, if that's how long our customers decide to make their regular payments, we're responsible for ensuring that we remain in touch with you and that we know exactly what's going on with that asset. That's critically important.
We are our client's partner, not only during the escrow process, leading up to the closing, whether that's a purchase or refinance, but we're also partnering with our clients for the long term. We are interested in promoting successful homeownership for foreigners in Latin America. And I think that's a really important piece to consider.
Let the MoXi team help you finance the dream of living in Mexico, contact us today
Did you know that MoXi funds & services loans in USD, is regulated and audited in the US & Mexico, and ensures compliance throughout the term of your loan?
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