How to find the best mortgage to buy a house
If you are going to buy a house and you want the best mortgage, you should know that the best mortgage does not exist. Its suitability will depend on its characteristics, the profile and the needs you have.
In this post we explain what you should take into account to find the best financing according to your needs.
The best mortgage: what to look for
We insist: when we talk about finding the best mortgage, we mean locating the best mortgage for us, the one that fits perfectly with our financial reality. What works for some may not work for others. And it is that, we remind you, a mortgage is a very long-term loan, which will accompany us for a long time (up to 30 years).
To recognize the best mortgage for us, we must take into account a series of factors:
- The capital that the bank lends us: it is the money that the bank will lend us and that we will return, along with interest. The money that the bank lends us will depend on several factors. On the one hand, the type of housing. Broadly speaking, the money that the bank will grant us will not exceed 80% of the appraisal or sale value of the property that we mortgage as long as it is a first home. In the case of a second residence, this percentage drops to, usually, 60% of the value. Another aspect that the bank or finance company will take into account when specifying the amount will be the level of indebtedness, which should not exceed 35%.
- The amortization period: the years in which you agree to repay the money that the bank lends you. The most normal thing is that they move around 15 and 30 years. In addition, there is another variable that is age. It is very common for banks to put a cap on us. That is, when the last installment is paid, one or all of the holders do not exceed a certain age. It is usually set at 75 years.
- The interest rate: fixed or variable. In the fixed mortgage, you will always know what is paid, since the installments will be the same. Hence, they are recommended to people with a more conservative profile. While in the variables no: the quotas will vary, in each revision, depending on the value that the reference type marks at that moment. In most cases, in Spain, the reference rate used is the value of the current Euribor.
- Products associated with mortgages: furthermore, mortgages may have a different price (interest) if other bank products are contracted, such as accounts, payroll, home and life insurance, cards, savings plans… Since the entry into force of the Law of Real Estate Credit Contracts, its subscription is not an essential condition for its granting.
As you can see, mortgages are a world. However, with the help of the right professionals, you can find the mortgage that best suits your current needs. Marbella WOHNEN Immobilien collaborates with the most advanced financing companies. If you want your house to have the best financing, get in touch with us, we will be happy to help you find a home, advise you throughout the purchase process and, in addition, get you the most suitable financing for you.
As in everything, the magic formula does not exist. But the best way is to be informed and nothing better to be up to date on real estate investment.