Mortgage loan and finances

Before taking out a mortgage, we first select the bank that is right for us, where we will apply. By writing the right one I mean one in which all or at least most of the credit parameters we will be able to meet.

Once we find the right financial institution, the next step should be to compare the basic factors affecting the final cost of the loan. The basic amount is the amount of credit due to the fact that the amount of the apartment or house does not always determine the amount.

Credit the purchase of real estate

Credit the purchase of real estate

It is worth considering in what percentage we will credit the purchase of real estate, whether the credit amount also includes its back or finishing. The factor determining the future interest rate on the loan is, Good Lender, how much money we have. The higher the percentage of own contribution, the lower the interest rate will be.

All this information will allow us to determine the amount of credit that interests us. Another important factor is the currency in which we want to take out a loan. Currency is a parameter that directly affects the amount of future installments. Loans taken in foreign currencies have a much lower interest rate than the same loans.

Loan duration and the possibility of early repayment

Loan duration and the possibility of early repayment

When choosing a currency, we should be guided by the loan duration and the possibility of early repayment. The loan period is also important for assessing our creditworthiness. The longer it is, the greater our ability to take out a loan is. After determining the time for which you decide to take a loan you should specify what installments we choose.

We have two variants to choose from, the first is equal installments, the second is decreasing. As the name suggests, equal installments are those which remain the same for the entire duration of the loan agreement. When choosing decreasing installments, the principal is fixed for each installment, the interest is decreasing.

Repayment the equal installments


It follows that at the beginning of the repayment the equal installments will be lower than the decreasing installments, but over time they will become larger. This means that you decide to make equal installments, thus increasing the total amount of interest payable, which increases the total cost of the loan. It is worth considering whether it is better to pay back higher installments at the beginning to get a smaller amount to pay, or if we decide the opposite.

Tags: credit cost, home loan, long term loan, home loan, foreign currency loan, decreasing installments, equal installments, dating, finishing, real estate purchase