Choose the mortgage you are looking for
Here you will find all the types of mortgages that you can analyze from all the existing banking entities. Whether you are looking to reunify debts, such as subrogation, fixed and variable interest and other important data such as the possible opening and cancellation fees as well as the percentage of your home that you can mortgage.
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Having a mortgage is the most normal thing in the world and more so knowing that not all of us can afford to acquire a property with the amount of money in liquidity . That is why we have compared the best mortgages on the market for you, access with the request button and we will redirect you to the entity:
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Now, it is advisable to know what types of mortgages exist in the market to ensure that we will be hiring the one that best suits our needs and can facilitate our domestic economy.
In order to realize our dream of buying our own home, the most common thing is to resort to a mortgage loan. And today there are many financial institutions that provide this type of service to their clients, in addition each of these institutions can offer different plans or types of mortgages for their clients, so search and find the best mortgage that suits our needs. needs is not an easy task.
What are the Best Mortgages?
Among the searches that have been carried out, we have found that there is a wide variety of mortgages that stand out in the field of fixed-rate mortgages. Offering some of the lowest rates on the market. Another of the institutions offer quite adjusted rates, offering a mortgage with a variable interest rate that is quite competitive with respect to its competitors.
Now, it must also be considered that the current financial situation is changing arbitrarily and quickly, which is why banks can vary interest rates every day, as there are speculations about increases in various indices, which allows institutions to vary the value of interest rates more constantly.
That is why a more general topic will be touched on in the next section. How can you tell if a mortgage is a good deal for us? This will give us guidelines to find the best option that suits our needs and thus be able to make the best plans to realize our dreams.
Find the Best Mortgage according to your needs
In order to find the best mortgage that suits our needs, it is necessary that we take into account both the offers of the banks and our own personal finances. In this way the plans we make will have a higher percentage of success. The first thing to consider is your income level.
Income level is the first thing we have to take into account in order to select a correct mortgage. The first reason is that banks already have established services that are offered to clients with a certain level of income, so the options are limited by themselves. Considering your income level first is an important point in maintaining healthy personal finances. And is that when one considers a personal budget, you have to be realistic about how much capital you can contribute to your mortgage, so the plans that will be offered to us will be better.
Another important point to consider when analyzing mortgages is the payment terms. It is very important that we consider the term in which the debt will be settled; The reason is the following: in fixed rate mortgages, the rate is lower if the payment term is between 5 and 15 years, now, if one decides to increase the payment term to periods greater than 15 years, then the interest rate increases, which causes the costs to increase considerably.
You are free to choose the term at your convenience, but it is important that we never lose sight of the value of our money, and what we advise is to hire the shortest terms, this would imply that the property is less expensive than one that we pay in installments higher, but with higher financing costs.
If the term we have in mind is greater than 15 years, it is better that we analyze the possibility of acquiring a mortgage with variable interest, since this option allows us much more attractive interest rates in the long term, although this option includes a little more of uncertainty, the opportunities are greater, but it is important that we analyze it with our advisor and thus make the best decision.
Another point that must be considered are the links that the institution requests, this implies that in some institutions we are asked to direct the payroll to the bank account that they indicate, in addition to the fact that most ask that some insurance be contracted with the purpose of financially supporting any unforeseen event that happens.
This is important to consider because they are expenses that have to be added to the mortgage itself, so that the financial plans that result from adding all the expenses will allow us to have a better planning of our money flow, improving our finances and allowing us to meet our dream.
Next we will differentiate the mortgages according to the applicable interest rate, according to the nature of the mortgage itself and finally according to the type of property we want to acquire.
Mortgages according to the interest rate
The most basic are those that offer a fixed interest , which will allow us to obtain constant installments throughout the months that we have agreed to said loan. Normally they are oriented exclusively to the acquisition of a property and usually have a maximum to be mortgaged, which is around 80% of the appraised value of the property.
The applicable interest is signed from the first moment with your bank, so it will always be the same in all the installments that you are going to pay. Therefore, the number of installments will always be the same, not so in variable interest mortgages, which also offer us to pay constant installments but depending on other indices such as Euribor , they will make us pay more or fewer installments. That is, instead of increasing or decreasing the amount of the monthly fee, what will happen is that fees will be added or subtracted, depending on how the differential that you have agreed from the beginning with your bank plus the Euribor is.
Finally we have those that mix both concepts, which are called mixed interest . A portion of the applied interest will vary based on an index. It may be that the fees are also variable, so you will not know for sure what you will end up paying each month.
For your curiosity, in Spain the interest that is most applied is the variable, always taking into account the Euribor reference.
Mortgages according to their nature
In this case we find those that are classified as promoter loan subrogation . These are the ones that we acquire the mortgage loan that the promoter of our home has assumed in exchange for said property. It is one of the most used when we want to acquire a new house and, more today, there are so many promoters who have not sold their properties.
Another of the best options is to reunify all our debts assuming a mortgage as the final result. That is, if you have several monthly payments that come from loans, various debts, credit cards ... All this can be reunified assuming a single monthly payment in exchange for guaranteeing your property (if you have it free of charges at the time of want to make such a transaction).
What the bank does is pay all your debts to stay with a single final which will be guaranteed with your house.
It should be added that it is also possible to include your old mortgage if it is a small debt. That is, the bank will analyze if it is possible to remortgage your house in order to pay off all the debts you currently have.
Nowadays, banks are more meticulous when it comes to carrying out reunifications, however you also have the possibility of resorting to individuals who carry out this service through private capital.
Finally, in this group we would include the reverse mortgage that, as its name says, money is received in exchange for the house instead of paying it to acquire it. It is intended for the elderly who want to obtain a return on their property in their last years of life. Once the person in question dies, the bank keeps that property.
Mortgages according to the type of property
Depending on the type of property to be acquired, the bank can offer you one or another mortgage to improve your situation and of course, its profitability. Thus, there will be a distinction if it is a property that comes from the same bank (it is in your portfolio), if it is official protection, if it is a developable land, a rustic property that needs reforms, to finance the first home or a second vacation home.
What to consider when purchasing a mortgage
The most basic thing is to comment the situation to your bank to know what it can offer you. However, the benefits of using a comparator is that you can see the different mortgage products that exist in the market so that you can analyze which bank to contact and find out better, if that is the case.
As always, before signing any contract you should carefully read all the points and small print that is attributed in it, since it is what can avoid headaches in the future. All this in order to understand the monthly installments that you are going to pay and until what year you will be doing it.
You should also look at the interest tranches offered by banks as well as the applicable commissions in each financial product. Sometimes seeing a lower interest in a few years does not mean that you will pay less.