Monday, March 3

How to get a cheaper mortgage

The unstoppable growth in the price of the houses, both new and second-hand, leads to an extra-effort to search for a cheaper mortgage. Probably this will be the most important investment that we will make in all our lives, so we need a mortgage that let us achieve the best possible conditions to aspire a greater tranquillity in the future. However, the concept of cheaper mortgage is somewhat vague, and we should determine what parameters to monitor at the time of taking a mortgage. Then summarize the most important features, so that we can use this list as a guide when negotiating with the bank. Interest rate: probably one of the most important factors, which relate our monthly mortgage and its duration. The interest rate may be fixed or variable, and in the last case we will have to choose a reference rate.

Mortgage duration: the longer the duration of the mortgage the shorter the monthly fee is, but the greater are the interest that we will have to pay to the bank.

Commissions: there are large numbers of committees for different concepts, and we will need to properly analyze them all.

Additional products: in some cases banks force us to hire additional products for better terms. In these cases it will be very important to calculate the actual cost of such a derivative product.

My Personal Advice:

Be aware for the low monthly fees associated with long-term mortgages (40 or 50 years). In these cases, the interest that the bank takes is enormous, depending on the interest rate and duration you can end paying between 2 and 3 times the actual value of the house.
Talk with the Mortgages specialists if you need more help.

No comments: