The mortgage will be with us for a lifetime, so we must first of all carefully choose the right product.
There should be no hurry. The recommendation of Despacho Lamas Law Office is to analyze all the available offers and take into account every single detail. After all, to find the right mortgage is not possible overnight.
Nevertheless, you should also ask yourself a number of key questions, which are summarized below in four points:
The interest rate is one of the most important points when comparing a mortgage. On the one hand, there are mortgages with a fixed term and, on the other hand, mortgages with a variable interest rate. In the first case, a fixed interest rate is agreed for all installments of the loan. In the second case, an index, usually Euribor, is used as a reference for determining the interest to be paid.
The main disadvantage of adjustable-rate mortgages is their uncertainty component, because if Euribor increases, the monthly payment may increase. While fixed-rate mortgages do not have this risk, they usually have a higher initial cost.
So, when comparing a mortgage at Despacho Lamas Law Firm based on the interest rate, consider where you are in your life. Is it your first house? Do you plan to improve your professional future? Depending on the answer, one loan or another will be more suitable.
There are many different options for this type of financial product due to its complexity. Therefore, when comparing mortgages, it is important to make sure that you meet the conditions.
For example, there may be special mortgages for social housing, for first houses or mortgages for second houses. It may also be an assignment of a mortgage or a reverse mortgage. However, the conditions are different each time, so it is better to make sure beforehand that they fit the real estate operation we carry out.
On the other hand, there are mortgages with special conditions for certain groups such as civil servants or young people. Therefore, it makes little sense to invest time in comparing mortgages for these groups if these requirements are not met.
Another important aspect is whether the bank requires the purchase of another product. For example, insurance, retirement plans or direct salary deposits. Depending on these requirements, a mortgage that seems cheap at first glance may become more expensive.
When comparing mortgages to find out which one suits you best, you should also consider the fees. While there are mortgage loans that do not include fees, it is common for them to include opening or prepayment penalties, among other fees.
Two essential aspects for determining the amount to be paid monthly for the mortgage loan are the amount of the debt and the term of the mortgage. In the first case, it is necessary to take into account how much the bank will finance.
As for the term of the mortgage, the shorter the term, the higher the monthly installment to be paid. Both the financing and the term vary depending on the financial institution and the individual case, so it is advisable to carefully consider them when comparing mortgages. Despacho Lamas Law Firm in Mallorca is always at your disposal.