Applying for a mortgage does not mean tying up long-term debt that limits your lifestyle, study, travel, buy a car or other plans. If you choose the right credit, you can still meet your projects.
Follow these 10 basic rules to purchase a home and make money with other people’s money, i.e, the capital of financial institutions.
- Before choosing, compare mortgages at least three different institutions. Remember, there is no good or bad credit, but the right ones for your profile.
- The ideal percentage you should spend on your mortgage is 20% of net monthly income (after tax) and 30% is tolerable. We advise you not to move from 25% as well have money available for some unforeseen.
- Allocates the highest amount possible to the hitch. The more money proportions in this category, credit will be lower, so the monthly payment will drop and the entire life of the loan will pay less interest.
- The cheaper credit is not offered the lowest interest rate, but in all respects as you should, the amount will go to fund the currency and term.
- Choose a loan from the best banks, this gives you certainty in the amount payable for the lifetime of the loan.
- Mortgages in which you repay more capital with each payment, usually, be the cheapest at the end of the life of the loan. Requests paying back and compare between loans what percentage of your monthly payment actually will be paying the debt. Opt for those with a better repayment mortgage, as you allow in the medium term to sell the first home, pay what you should and the remainder to a new down payment on a home that best meets your needs new life.
- Hire a fixed-rate loan, this gives certainty on how much you are paying for the entire life of the loan and allow you to have your stable finances. Consider that the flat rate does not mean that all your monthly payments are the same, there may be variation, however, since the contract firm will know how much you must pay each month.
- Consider your family budget corresponding to at least an extra annual payment of your mortgage. The recommendation is to make payments during the first five or even eight years of the mortgage, when more interest is paid and contributes less to capital. In this way, everything will go straight to hasten your debt and term and interest payments will be reduced.
- The term can significantly expensive your credit because it represents the time more or less that will have to pay the rate of interest, management fees, insurance and all costs of your mortgage. Choose a convenient time for you, but it costs less. The recommendation is a 15-year mortgage, it’s a convenient time to pay.
- Opt for those loans with plans to return for prompt payment as a reduction in the interest rate or monthly fee.