Choosing the mortgage

Hiring the mortgage loan will allow you finance the purchase of the home you have chosen. It also allows for much longer periods, so that the return of the requested amount and any accrued interest may be performed more easily.

How much money can give me the bank?

Must assess two factors:

  • First, the appraised value of the home. Through an appraisal company recognized by the financial company know the assessment of the property and at the same time you can know if the price set by the seller meets the market values. Therefore, the appraisal serves a dual function: first, it increases the security of the financial company, and secondly, you will serve as a guiding criterion.
  • The second factor that will determine the granted amount is your monthly income. Generally, Financial companies recommend that the monthly fee does not exceed 35% of monthly income.

Amortization period.

Is the time stated in the loan for full refund. Given the importance of the operation, in mortgage loans has a broad term which may extend to thirty-five years.

Amortization systems.

Most mortgage loans offered are amortized using constant monthly payment comprising principal and interest. This means that each fee you pay will cover one part you requested amount and the other, the interest of the loan. When the interest rate is variable, the time in which the interest rate is revised, a new fee that will remain constant until the next revision.

Types of mortgage loans.

Fixed-rate Mortgage Loan.

The interest rate remains fixed throughout the life of the loan, regardless of changes in interest rates on the market. You will pay the same monthly fee. Usually hired for a period of 15 years. To choose between fixed rate loans of different entities aspects that you should consider are:

  • The interest rate.
  • The origination fee.
  • The fee for early cancellation.
  • If the difference between interest rates is small, we recommend that you consider all the commissions.

Variable rate mortgage.

Normally, the interest rate that is offered initially applies only during the first six or twelve months. For the remaining period, the interest rate is reviewed in terms of a reference index (EURIBOR, IRPH, etc..) To which is added a spread.
To choose between variable rate loans of different banks aspects that you should consider are:

  • The reference rate set and the differential that is applied (think that this interest rate will be applied for much of the life of your loan). 
  • Arrangement fee and interest the first year. These values ​​should be used as decision criteria when comparing loans with the same reference rate and differential.

Other features of this type of operation are:

  • The fee you pay varies each year.
  • Is usually hired for a maximum period of 30 or 35 years.
  • The early cancellation fee is a maximum of 1% (2/1.994 Law).
Arrangement expenses >