Choosing a mortgage should be preceded by careful comparing offers a number of institutions offering this type of product. This involves, of course, the selection of the cheapest loan possible. We need to remember that we do have a sizable impact on the overall cost of the loan.
The first factor that we must take into account is the same amount of the loan and its currency. These are the variables that directly affect the margin lender, and as we know, this is one of the components of interest rates charged on our commitment. Another variable that should be taken into consideration is the time of the loan. What will last longer, it will also be proportionately higher costs of servicing the loan. By controlling individual financial institutions offer us ask so simulations for different repayment periods. This will allow for the selection of possible favorable cost-efficient solution, the monthly installment will not be too high.
Loan To Value
In addition to a fairly obvious features of the loan account should also include LTV ratio. Loan To Value is expressed as a percentage ratio between the amount of the loan and the value of the property - security for the loan. At its height affects so passed by us so. own contribution, which then larger, the more it reduces the LTV ratio. Its reduction will also decrease the margin loan, because the award is associated with a lesser degree of risk.
Of course there is no shortage of institutions that no problem will finance loan with an LTV of 100%, however, beyond the increased margin may also be more expensive because of the need for insurance missing downpayment. Most insurance is subject to the entire value of the loan in excess of 80% LTV. At this point, one has to note also is that financial institutions may require additional security, such as loss of job or life. Let us remember that they also cost money.
Lenders used to reward their old clients with whom they work for some time. The reduced margin is dictated by the client's credibility here - after all, the financial institution has access to finance throughout its history. Affiliated with the reason for the reduction is spread so of course our creditworthiness. Higher borrowing capacity somehow guarantees the lender that we will not have a problem with the subsequent repayment of the loan. Remember, however, that the ability of credit, it is not only the amount of our earnings, but also the level of our expenses, household size, or previously contracted loans, which will significantly reduce the level of our creditworthiness.
Promotion Promotion is not equal
A potential lender may we also suggest that it will lower the value of the interest rate, if we use the other products. It can be as simple as a personal account or a credit card.
Remember, however, that using this promotion we may be obliged to use the additional product within the specified range for several years. If you do not będziemyspełniali the promotion, the margin probably will be immediately lifted. When considering this type of "bundled offers", note also that these products can be paid services. Before deciding to make use of them, let's calculate the costs and benefits that are associated with their operation. All this would not turned out that dopłacimy to this great promotion.