Thursday, 10 July 2014

We are counting the cost of mortgage

Due to the long term of the loan, loan costs can exceed its value. But this is not the only fees that are associated with it is granted. What to look for?

The loan interest rate

Interest out of the capital remaining to be paid, is the most important component of the cost of the mortgage obligation. Of course, the rule is then a lower interest rate, the better. Financial institutions represent interest expense on a special form that presents information products, there is here so need to make calculations on your own. However, pay attention to the possibility of a reduction in interest rates - for example, over the counter Stefczyka its level is reduced due to the internship over the counter, as well as a good credit history.

Commission for granting

This is the first of a list of non-interest costs of the loan. It is given as a constant value, eg 2.000 , or as a percentage of the loan amount, respectively, for example, 2% of its value. Here also, apart from reading the basic offer, worth checking out, in what cases and how much commission for granting can be reduced or completely eliminated.

necessary insurance

Insurance as may be required are: unemployment insurance, or the inability of work, life insurance, property insurance against fire and other perils, bridging insurance, low downpayment. These insurance are required at different times of the loan, ie the part must apply throughout the period of repayment, and part shall be taken only periodically. You should therefore make sure that the period during which data security is required, refer to the rates of policies and apply them for the respective periods.

other costs
You should also make sure whether and what additional costs will be charged with the granting of the loan. This may be a fee for the valuation of such property.

Adding up all the costs of financing should also compare the rates of special costs, eg the cost of early repayment, the cost of prompt informing of the unpaid installment, etc. Just take into account all the variables of fees and charges will bidder.

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