Friday, 30 May 2014

The total cost of the mortgage

The rate we already know a lot. Now it's time to look at other factors that may affect the total cost of credit . Particular attention should be paid to offer borrowers who apply for various types of promotional loans . There may indeed prove that the promotion runs out after two months, and the other will have a loan with an interest very high. Suppose, however, that here we did not give a catch.
The first charge, with which we encounter the so-called preparatory commission . By default, the height does not exceed two percent of the loan amount, and promotional offers banks often refrain from downloading commission . This is a one-time fee, some banks may be credited, in others not - it depends on the structure of the loan agreement .

The second charge, with which very often we have to reckon, is the fee for early repayment . Ostensibly it may seem pointless, because the bank recovers faster your money. However, its introduction, and it is best in the barrier height, is for a bank guarantee of customer retention for a long time.
For foreign currency loans are often set fees for currency conversion . Here, depending on the design of the offer: free will be one, several or all of the conversion, but it is also possible (and fairly uncommon) that all conversion mortgage is paid.

Quite a large fee may be missing insurance downpayment . His presence can not be determined in advance and depends on the bank's offer. However, we can prepare in advance that if the loan will cover more than 80% of the value of the property, we have to insure all of this surplus. Here, depending on the bank's fee ranges from two to four percent of the missing contribution of their own and this is one of those charges that you pay before the disbursement of the first tranche of a mortgage . Very few banks can subtract this value from the value of the loan.

In addition to all these charges is still a lot of "small" expenses, not exceeding a few thousand: property valuation , the fee for preparation of the application , temporary insurance . All of these can quite clearly affect the amount of the loan, so you should focus on such trifles, and that is not always possible to give credit, because only some banks give the possibility to its borrowers.

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