How to choose the best mortgage for you
The amount of existing offers in the financial market, produce, many times, in the consumer, doubts about what is the best offer mortgage that exists. In a way that we are going to give a series of guiding criteria to carry out the best choice.
1. Look at the TAE of the mortgage. At first sight can provide a mortgage with a nominal interest rate of 3.5 per cent and another with a nominal interest rate of 4 per cent. Is this course might understand that the first option is the best (has an interest more convenient and is that we choose). Care the nominal interest of the mortgage is not the best indicator to substantiate our option; it is more appropriate go to the SAD. This is because the nominal interest does not include a series of expenses that may have a high level. In the TAE are included both the nominal interest as a series of bank charges: opening commission, study, of early cancellation, so this Annual Rate of equivalence is an indicator much better. Despite this should be recalled that there is another series of expenditure; taxes, notary, registration of the property that are outside the TAE and that we will have to also meet
2. Distinguishes the type of temporary share. The shares are the quantities that we have to go paying to return the borrowed capital and interest generated. Most of the times that share is monthly, however, there are times that might be agreed time higher: the quarter or the half. If their income is fixed you agree, without doubt, the monthly payment. But if their incomes are discontinuous, has periods in which enters more and others that those are minors, can interest a longer period of time. Here the trick is to make a good financial planning, so that their times of income coincide with the payment of mortgage loan.
3. Distinguishes the class of shares. The shares of depreciation can be constant, growing and decreasing. Usually the banks offering the quotas constant, and it are accepted by the borrowers. Despite the fact that can interest plus a share declining or growing. Examples would be:
a. If you enters into a mortgage loan, of duration long, you may in the years of depreciation is with you on the occasion of his retirement, their income will be reduced; if this is so interested more a share declining, it will pay more to the principle (moment in which you have more economic resources) and pay less at the end (when their incomes will be lower).
b. Suppose you at the time of subscribe to a mortgage you have many expenses, for example is paying the bills of a car, and that these costs will be reduced in the near future, you interested more shares rising, so now that has less money pays less, and when you have more liquidity, by canceling the letters of the car, will be better position to face the payments of mortgage.
4. Determines the length of the mortgage. Let us start of an idea that by simple not ceases to be important. The more length has your mortgage MINORS will be the quotas, but more will be the total interest you will pay.
So that the interesting thing is to find a balance in the temporary period to subscribe. The improvement form of power take this decision is through the application to the bank of a table of the loan. In a way that studying it and displaying the amount of shares that is able to pay, to determine the shorter period of time, for avoided interests.
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