Everyone wants a new house, but nobody wants to pay much for it. That is the situation that describes the purchase of homes throughout Latin America. But despite the fact that prices are not as cheap as they would like, people continue to borrow in order to finally obtain the title of owner.
In the case of a financial commitment that will be assumed for more than a decade – some even reaching 30 years – it is vital to make every possible effort to reduce credit costs, so that the interest payment is not so high and your portfolio Don’t get hit by that purchase. However, there are four circumstances that make the acquisition of your mortgage not as cheap as you expect. Know them and open your eyes wide before embarking on the house purchase train.
Your mortgage loan will be more expensive if:
If you opt for a variable rate
This means that if interest rates increase, your monthly installment will also increase, and you will end up paying more. The increase in the rate is due to many factors, including inflation, so experts advise that you apply for the loan at a fixed rate.
If the bank includes many commissions
There are banks that charge more commissions than others and those costs help increase your monthly fee. One of the first things you should find out is what is included in the payment you will make month by month.
If you do not compare interest rates
Banks seek to attract as many customers as possible and for that they try to differentiate themselves from others by offering not only lower rates, but other benefits. If you keep your first option, without comparing the other entities, you lose the opportunity to find a better deal. On the internet there are different pages you can use to compare mortgage loans, including the comparator of Sweet Landay.
If you finance it as soon as possible and with a low initial
The longer the term to which you finance your credit, the more interest you will pay. Similarly, the lower the initial installment, the more the amount to be financed. Take this point into account and evaluate how much you can pay monthly, ideally, do not opt for the minimum payment, but also for one that destabilizes your budget.
Remember, your mortgage credit can be a dream or, conversely, a nightmare. Everything will depend on how you manage it.