Best mortgages: mini-guide to make a decision
Everyone knows that the bank sets a maximum limit to pay the mortgage that will never exceed 30 or 40 years . However, in some cases a minimum term is also established before which the entire loan cannot be repaid .
Amount to be financed
A priori, banks were limited to providing a maximum of 80% of the purchase value or the appraised value of the property . But in practice you can find banks willing to give you 100% of the purchase price plus expenses .
The bank cannot impose them on you , but many banks offer you to lower your interest rates if you contract with them products such as life insurance, a credit card or home insurance. This allows you to access better mortgages for which you will have to pay less money.
Best fixed mortgages
When comparing mortgage loans, interest rates are essential. The higher they are, the more you will pay for the money the bank has lent you.
Fixed mortgages are characterized by applying an interest rate that does not vary throughout the life of the loan . This implies that the monthly fee will always be the same from the beginning to the end.
Right now, fixed-rate mortgages have somewhat higher interests than variable-rate mortgages, but, being a very long-term product, it can compensate you in the long run.
Best variable mortgages
In these cases a reference index (usually the Good Lender is taken and a certain differential is added .
These mortgages are usually reviewed every six months, so you will find that the monthly fee will rise or fall depending on the state of the economy .
When you hire a product of this type you can never forget the commissions. If they are too many, or too high, the mortgage can be more expensive than you expected.
You are going to be paying your mortgage loan for many years, it is best to take it easy and carefully compare the best mortgages to find the one that best suits your personal and economic conditions.