Do you want to buy an apartment but you lack money? You’ve been delaying the renovation of the house for weeks because you don’t know where to get the funds for? Would you like to finally stop renting and move to your own four corners?
A mortgage will be a good solution for you to raise cash. Where to look for profitable offers and what to look for? We suggest how to choose the best mortgage!
What to look for when choosing a mortgage?
The cost of the loan
When choosing an offer, pay special attention to the total cost of the loan .
The most important element affecting the cost of the mortgage is interest – it is the basis for which interest is calculated. It is worth knowing that the interest rate usually includes WIBOR (the interest rate at which banks grant loans to other banks) and the bank’s margin (this can usually be negotiated with the bank).
Another element included in the cost of the loan is the commission , i.e. the fee that the bank charges for granting it. Let us remember, however, that some banks do not charge any commission, and in the case of a loan for an apartment it is usually very low.
You can also buy additional life insurance for your mortgage, which will provide security, e.g. in the event of loss of income or incapacity for work.
A mortgage comparison tool will help us calculate the cost of credit. We will conveniently check the interest rate and commission in each offer and find out the estimated APRC amount.
Choice of installment type
When applying for a mortgage, we have two types of installments to choose from: equal and decreasing.
Equal installments mean a higher cost of the entire loan, but a lower cost of monthly installments .
Decreasing installments means a lower cost of the whole loan. It is worth noting, however, that in this case, in the first half of the loan repayment period, installments are quite high. Very good credit standing is also required for the latter option.
Remember to choose the amount of monthly installments to suit your financial capabilities.
Loan repayment period
The last thing we should pay attention to is the loan repayment period. Remember that a longer period means lower installments, but a higher cost of credit due to interest being charged.
In this case, with good credit standing, the bank will certainly come to our side in terms of the repayment period. Let’s set it carefully, taking into account your monthly financial capabilities. The faster we repay the loan, the lower its total cost will be. The installment amount should, however, be chosen in such a way that we have enough money left for everyday life.
Where to look for mortgage offers?
When we want to move to our dream four own corners, often the only solution is to take out a mortgage. Such a loan is, however, an obligation for years – it can be repaid for up to 30 years. You should approach such a large commitment with caution, devoting time to choosing the right offer. But where do you look for the best mortgage offers?
Once you decide on a loan, it is worth comparing the offers of different banks. However, such a venture can be time-consuming. However, a mortgage loan comparison website comes to the rescue. All you have to do is enter the amount of credit you need and enter the repayment period you are interested in. The comparison tool will show us offers that meet our requirements, showing the estimated monthly installment calculation and APRC amount.