Decor : Tips to get a better mortgage
When buying a house, it is rare that the person does not have to go to a bank in search of a mortgage with which to deal with that purchase. At present, the range of mortgages offered by the market is very wide. Each bank offers different options with interesting offers, although at the moment of truth, accessing one of them requires many requirements that the client must meet. However, Which of them to choose? It is clear that the goal of any user is to choose the best among all the cheap mortgages we can find. If you are thinking of requesting one and you are missing something, keep reading because we leave you a series of tips that will help you choose the best option.
As always said, the rush is not good and when looking for a mortgage either. It is necessary take our time to analyze the different options we have on the table to determine which one best suits our needs. Spend some time or ask for help from experts in the field to help you make the right choice.
Internet has become a very powerful tool from which we can find practically everything. In the home buying sector, it has also acquired great importance. It is possible to use a mortgage search engine that offers us a list of the best mortgages in the market with information on each of them. This way we will save a lot of time in having to go entity by entity asking for information.
Mortgage Interest Rate
Even if It is usually the first thing we look at when applying for a mortgage, this indicator is not everything, since other factors that can choose between one mortgage or another matter. In addition to the interest rate, it is important to know the different commissions that will be charged to us, and even the penalties, for example if we decide to partially or completely cancel the mortgage.
Fixed, variable or mixed type
When choosing between a fixed or variable rate mortgage, it is important to keep in mind two aspects. On the one hand there is the capacity to assume possible increases in the installments throughout the life of the mortgage. On the other hand, a fixed rate allows us to eliminate that uncertainty, knowing at all times the price to pay each month. This option is recommended for people who do not have very high income.
In addition to the previous cases, banks also offer the option of a mixed mortgage, where the first years would offer a fixed rate and then pass it to a variable one.
In this sense, analyzing our personal situation well and opting for the product that best suits us is also a way to access a good mortgage
Number of years of the mortgage
It is not uncommon to fall into the error of requesting the mortgage with a duration as long as possible so that in this way, we have a lower fee to pay. This has the disadvantage that you will be paying interest for a greater number of years. The most recommended option is to choose the shortest possible term that allows you to pay.
It is not uncommon to find entities that, depending on the amount requested, offer you a mortgage for a certain maximum of years.
Commissions to negotiate with the bank
As a general rule, the commissions that we should negotiate with the financial entity would be the opening commission and the cancellation commission. The first one is charged only once and paid upon signing the mortgage. The amount usually varies, depending on the amount we request, but it can range between 0.5% and 1%.
The total or partial refund cancellation fee will be applied to us each time we make a early amortization and is usually between 0% and 0.5. It is recommended that it be 0%. This way we can repay the mortgage without paying too much.
Negotiate with your bank everything you can about the commissions as it will mean significant money savings.
Recruitment of additional products
To lower the interest rate, banks often offer customers a series of alternative products that will make interest drop a few tenths. Here the most interesting thing is to know if this decrease in interest is beneficial, or if paying for these additional products will mean more money than we will save.
In addition to all these tips that we have shared with you, what others would you give to our readers when hiring your mortgage? Encourage and share with us all your comments. We are waiting for you!