Buying a home is a very important step for anyone. It may be easy for us to give it but everything gets complicated when we apply for financing. Will the mortgage they offer me be the most suitable for me? In Creditoh! we give you some keys to know if the credit they offer you is the one that best suits your circumstances.
From interest rates to commissions: the most important keys to your mortgage
Finding an interesting offer in the Spanish mortgage market is not an easy task, especially if you do not first go to the services of a real estate credit intermediary. It is a difficult mission, but not impossible. To know if a mortgage suits you or not, you need to take into account some factors.
is, the price that the bank will charge you for lending you the money. This percentage varies depending on whether it is variable or fixed.
Until very recently, most buyers chose variable-rate mortgages, that is, those in which the amount of the installments changes according to the reference index. If you do not have too many savings and prefer to pay super reduced installments, this type of credit can be a good option for you.
But it happens that the Euribor is in negative values, so banks are increasingly offering fixed-rate mortgages with very attractive conditions to encourage their hiring. They have their advantages: shorter repayment terms and stable installments.
Analyze the current mortgage supply of the national market and review interest rates. You can find a credit that fits your economic conditions. But don’t stop there. Consider these other factors.
products We refer to home insurance, pension plans, cards, etc. That is, products or services that the bank will ask you to hire in exchange for some type of bonus on your mortgage. Some may interest you to reduce the interest rate, but on other occasions it may compensate you to give up that product and accept the fee that the bank offers you without it.
The opening fee and the amortization
fee The first is that percentage of the total value of the credit that the bank will charge you when contracting a mortgage and with which it will compensate the administrative procedures that must be done to formalize the operation. Each entity decides the amount of this commission. Of course, you must inform you about its amount before closing the contract.
As for early repayment commissions, with the new mortgage law, banks cannot exceed certain limits. In the case of variable-rate mortgages, you can only be charged a maximum of 0.25% during the first 3 years and 0.15% in the following two.
Maximum percentage of financing
That is, the maximum percentage that the bank will offer you on the appraised value of the home. The most common is that this does not exceed 80% but there are more and more banks with which 90% and even 100% can be negotiated. To access the latter you must have a good economic profile (high income, no debt, stable work,…).
We talk about the term you will have to pay your debt with the bank. Depending on your age, your economic profile and the type of mortgage, the bank will make you offers for 30, 20 or even 15 years (in some fixed). The longer the term, the greater the amount of interest that we will have to pay.