Housing, Apartment and Real Estate

Posts Tagged ‘mortgages’

The best mortgage need not be the cheapest, is the cheapest is usually the least risk cover. Therefore, this concept will depend on our personal situation and the best mortgage will be the one that best suits their personal circumstances.

We could say that there is no single criterion for choosing the best mortgage but if we take into account a number of points when deciding which mortgage is best for us.

As usually achieve many consumer, do their homework when we go out a mortgage will help you choose the best mortgage to suit our needs, which will save us a considerable amount of euros.

Our biggest recommendation is to read and collect information on the different concepts and elements of a mortgage. Our guide to mortgages is a great starting point to begin that task. It is preferable to have a look at the items we have prepared this guide before going to request more information from banks.

It is also necessary to assess their savings and borrowing capacity as this will define what it is for each person the best mortgage.

Anyway, these are the aspects that should pay more attention:
* Interest rates – fixed or variable?
* The fees for a mortgage
* Depreciation rates – the share

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Choose the interest rate for our mortgage is probably the most important step and often going to have to do with our economic opportunities, and to foresee possible future decreases or increases is impossible. While each financial institution has several mortgage products, each with their own brand names, usually can distinguish four types of mortgages according to type of interest rate:

Variable interest rate
Our mortgage would be subject to variability of the market each year by making the review could have both increases and decreases in assessments. We have the advantage of having a prepayment fee lower than fixed rate loans and repayment periods much longer (up to 50 years).

Fixed interest rate
We will have the advantage of knowing how much money we pay every month and allow us to plan our future without risking possible increases in our dues. In this case the interest rate rises will not affect us but neither would the tracks, another important point is that the payback period is usually shorter (12 to 15 years).

Mixed rate
We will have an initial period during which pay a fixed rate, typically 3 to 5 years. After this period the interest rate will be variable and may be referenced to Euribor, IRPH or whatever we decide.

This case would be advantageous for those who do not want to risk a rise in its first years, which is usually the greatest costs involved.

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Mortgage costs
Mortgage before the loan is needed from the work of several professionals: lawyer, appraiser, registration, Stamp Duty, agency and by the opening, if any. All these steps are necessary and of course each must pay professional fees.

The costs can vary greatly from one region to another and found that in Madrid and Barcelona we will be spending more money than the rest of Spain.

Tax dollars to buy the house
* We will pay VAT in the case of a new home, should be free to pay the 7% VAT and if it is a subsidized housing would pay 4%.
* Stamp Tax, we will inform the cost it has on our community and can range from 0.1% to 1%.
* We will pay the transfer tax when purchasing a second hand property and in this case would pay 6% (may vary in certain regions).
* On the other hand, the purchase of housing and mortgage payment are also subject to tax relief.