Ten Recommendations To Consider Before Choosing A Mortgage
The sale of homes has skyrocketed in the last 14 months with a rise in August of more than 24 %. Fernando Encinar, Idealist’s head of studies, explained that one of the critical factors is that banks “have opened the mortgage tap, ” an argument that should not go unnoticed but in which the buyer has to be aware of some factors.
Amount. It is advisable that you request the lowest possible loan volume, thus assuming fewer costs. Do not become indebted unnecessarily.
Fee. Keep in mind that the mortgage loan that is settled through the procedure of ‘constant, constant interest and amortization fee’ is usually the one that best fits the structure of family income. It is advisable that you do not lose more than one-third of your income to the payment of the fee.
Other amortization installments. Analyze with caution the loans with the amortization of the capital of a single time to its expiration or with a term of lack of amortization, in which only periodic installments by interests are paid. These products may be suitable for managing temporary insolvency situations, but may not fit your future payment capacity.
Term. Find the most appropriate combination between the interest rate and the term so that the amortization fee adapts as well as possible to your possibilities. Lengthening the term more than necessary means paying interest plus years and reducing it in excess can mean a large monthly payment.
Interest rate. It is the price of the loan and can be variable, mixed or fixed. In variable loans, the fee changes in each revision, depending on the variation in the interest rate. Fixed rates are by their nature higher than the variables, but incorporate the peace of mind of not being affected by the movement of interest rates. He will always pay the same. There is an intermediate possibility that deserves to be analyzed, a mixed type: being a variable type that incorporates the first section of the fixed type, which can be 3, 5 or even more than ten years. In case of choosing variables or mixed, calculate your debt capacity in a scenario of rising rates.