Agreement granting you a mortgage signed in a moment, documents kompletowałeś few weeks, but will pay off installments over a dozen - in some cases even 30 - years. That is why it is so important to choose them in an appropriate and reasonable manner.
Choosing the type of repayment installments , we have two forms of repayment: fixed installments and decreasing . In the case of installments fixed sum of money is being put to the bank for the entire period of the loan the same, but when it comes to decreasing installments, then over time the amount is reduced. When you choose a fixed installments, monthly liability to the bank will be lower than in the case of decreasing installments. This form is recommended for people who depend on stabilization and a single, clearly defined amount that will wane with the portfolio. Also, if your job situation is uncertain and not have to worry about income, you should opt for a fixed installments . It should also be borne in mind that if you choose this form, paying off your mortgage , your credit worthiness will be higher than in the case of decreasing installments .
Do you want to pay off your mortgage sooner? Select decreasing installments
I - what with decreasing installments ? When is it worth to not decide? Due to the fact that the amount owed to the bank debt decreases faster than is the case with fixed installments, they are recommended for people who want to quickly pay off your liability. At the time of his premature repay the loan amount will be for smaller, and hence, no interest will be as high as in the case of equal installments. Also, if you have a prediction as to the fact that revenues generated in the future I will be lower than currently, you should choose a decreasing installments. It is very important to properly choose the form of repayment installments, adapting them to their current and future financial situation and the state of the household budget, it might even affect tens of years to come.