Nowadays, the dream of one’s own house is no longer so distant. There is now large supply of housing and financing facilities. One of them is mortgage credit. Although this modality offers many advantages, it is also known that certain precautions must be taken before accessing this type of loan, because, in case of default, your house will be responsible for the debt.
The mortgage contract is one of the most important sources of spending that we face throughout a good part of our lives. Now, there are ways to save on the mortgage and, throughout this article, we will explain a series of tricks and tips so you can achieve it in the quickest and easiest way possible.
Preventive measures to save with the mortgage before signing the contract
Examine as many offers as possible
Although it may seem obvious, it is best to check all existing offers in the market. The prospect of having to check a large number of mortgage contracts may not be very attractive and it is easy to fall into the temptation of leaning for one of the first offers we check.
However, the differences between what banks offer may surprise you. The ideal is to use online tools such as Get Me My Mortgage, which allow you to easily compare all the offers available in the market.
Limit the amount requested
Each deposit more we request will mean more interest to pay unnecessarily. Currently, this factor has lost relevance, given that practically all mortgages are limited to offering a maximum of 80% of the appraised value. Years ago, however, it was very common to offer mortgage loans that included a plus to pay for the car, the renovation of furniture, etc. In any case, regardless of the amount that is offered as a loan, you must limit yourself exclusively to requesting what you need to purchase the property.
Controls the costs of taxation and notary
As you already know, hiring a mortgage generates additional expenses in addition to interest. Among them, the valuation and notary expenses stand out. Very often, the individuals who hire a mortgage are limited to accept the costs that the bank in question suggests. However, nothing prevents looking for a professional who has a more competitive fee.
In the case of the appraisal of the property, it is possible to ask the bank to provide us with the list of experts with whom you usually work, so that we can find the one with the lowest rate. With respect to the notary, the most advisable thing is to consult with several notaries. You will be surprised by the differences.
Limit the amortization period as much as possible
The banks have been responsible for printing in our minds the idea that a mortgage is important to pay with relatively small fees. In theory, in that way, it is assumed that we are not going to suffer economic hardship during the term of the contract. The problem with this approach is that the lower the monthly fee, the greater the number of installments to be paid.
You must bear in mind that, the longer the mortgage contract lasts, the more interest we will end up paying. Although we have the impression that we are paying the mortgage without problems, the truth is that we will end up paying a very high price for our property, which, in the long run, will end up redoing in our level of wealth.
Choose the links that best suit you
Banks often offer an attractive APR, as long as we agree to commit to other products such as home insurance, life insurance, credit card use and so on.
Although the interest offered may be apparently attractive, we must take into account the additional expenses that may be incurred by the extra products contracted. Not always reducing interest is not always the most convenient, especially if we can find the same products provided by another company at a better price.
In short, if we intend to hire insurance and other products suggested by the bank, it is advisable to check what the rates are offered by other market agents. It is possible that the money saved by hiring these services with a third party is greater than the amount of interest that we would save by reducing the APR.