Aug 04

Starting to think about asking for a mortgage? Consider these 5 tips

Open a mortgage is not a decision to be taken from one day to another, but a fact that will bind us to the bank monthly and condition our economy for decades, so it is essential to be well informed about this financial product and take some precautions before choosing bank and of course signing.

The following 5 tips to ensure the play as possible in one year,will be remembered not just for their cheap mortgages.

Put your savings to work up to the entrance. A savings account or a term deposit may offer a bonus for your money, until you have to give it to the bank. If for example you have saved 20,000 euros, 1-year deposit at 4% APR can provide an extra 800 euros (see ranking of best deposits in September, to 4.60% APR)

If you’re not in a hurry, save a little more and gives higher input. So you have to borrow money and pay less to the bank mortgage for fewer years, less interest you will be charged and you will increase your chances of being granted the mortgage, as banks greatly appreciate our customers who have shown their ability to save and feel safer the lower the percentage of the value of the house we need. (However, if you have no savings, you can get 100% financing buying a flat bench)

Ask for information at least 3 banks. And if you can, ask even more. This will allow two things: first, to compare the offers and, second, learn some concepts about mortgages. So every time you go to a new bank, you know what look out for and what to ask

Make lists of questions at home. And use them both in the first interviews with the bank, as once before the notary before signing. To prevent it remain unresolved doubts and have a role where the answers point to read later and quietly ask for a second opinion (in a forum moderated by experts mortgage, for example).

Do not rule out online mortgages. Remember that online banks often have cheaper mortgages but, yes, they are more demanding customer profile. In any case, complete the online application is so comfortable you will not lose anything by trying while looking at other entities

May 07

Request an extension of the mortgage

Sometimes we are unforeseen and see illiquid to meet them, whether at home or enterprise level, if we are autonomous or business owners. One of the ways with which we have in these cases to deal with this lack of liquidity is an extension of the mortgage or, in technical terms, a novation of it.

If we decide to do it, knowing what method should we choose to be most suitable for our situation.
Modalities

The extension of the mortgage can be done two ways:

Expanding the amount, ie, increasing the amount of money that the bank lends us to change the extension. According to experts, this modality is that we must choose whether we are looking to fill a capital shortfall.

Extending the term. Thus, what we achieve is a reduction of the monthly mortgage, so this option is more convenient if you have suffered a reduction in income due to unemployment, wage cuts, etc..
additional mortgage

Often if banks consider too risky to grant an extension of our mortgage, because our credit history is not very good, tend to use an alternative, such as a mortgage complementary.

In this case, we beautifully well and good with numbers, since the interest rate at which we offer this new mortgage are usually much higher than those of the first, so that we can share out pretty high. That is why this method is the least chosen.
subrogation

Finally, it is also appropriate to consider whether, in these cases, we would more advantageous to the mortgage subrogation, ie sign it with another entity and on more favorable terms, which we also can lead to higher liquidity to month