You think about your own apartment, but you can’t afford it, so you decided to take a mortgage? Analyze all the costs associated with taking out a mortgage to make sure you can pay it back.
Mortgages – what are they about?
Mortgages are banking products secured by a mortgage. A mortgage is a tangible means of securing claims on real estate – this means that when the borrower stops paying off the liability, the bank gains the right to take over the property. Under the mortgage contract, the bank transfers funds to you in an amount agreed by the parties.
We have it on the Buendía family: Mortgage installment – how to calculate it?
At the same time, you, as the borrower, undertake to repay the liability within the specified period, in installments including capital and interest.
Remember that mortgages are special-purpose loans that can be used to buy an apartment or house, build a house, or buy a construction plot or renovate a property. They can be enlisted for up to 35 years – just like that e.g. Fine Bank mortgage.
Mortgage – terms of the loan
If you are not able to finance the purchase of an apartment yourself, check the cost of the mortgage carefully. When comparing offers, pay attention to mortgage rates, but remember that banks also add fees such as commission.
The compulsory insurance premium also increases the final cost of the loan. For this reason, the most accurate indicator for comparing offers is the actual annual percentage rate (APRC).
The larger the own contribution, the smaller the amount of credit needed, which is conducive to lowering installments. When applying for a loan, you have to take into account that your creditworthiness will be checked – the mortgage is granted based on the real chances of repayment.
The higher your earnings and no other financial obligations, the better your chances of getting a loan. Banks still look more favorably at people employed under an indefinite employment contract.
Before signing the contract, find out whether early repayment of the mortgage involves additional fees, and if so, how much.
How do you get a mortgage without a down payment?
Banks require a down payment of 20%. property values. Proposals with a 10% contribution are also available, but with additional insurance.
What if you don’t have the savings in the right amount? You have the chance to get a mortgage without a down payment when:
- you own another property that will serve as collateral;
- a close person is the owner of the property that can be used as collateral – you need an entry in the owner’s mortgage, but he must be the borrower with you
- you are the owner of a plot on which your house is to be built – the plot can be considered as own contribution;
- you will use a loan from a developer – developers sometimes offer their customers a loan for own contribution;
- you will find the opportunity to buy a property at a price lower than its real value – if the market value of the apartment is USD 250,000 and the owner sells it for USD 200,000, then the difference between the market price and the transaction price can be considered as own contribution.
Mortgage calculator – comparison of offers
Try the Buendía family mortgage calculator to see a mortgage comparison and choose the best option.
Data from 31.10. 2018 for a mortgage loan of USD 200,000 taken for 25 years.
According to the Buendía family comparison engine, the best offer is a GFI mortgage.
Good Finance Mortgage – offer details
A GFI mortgage for a period of 25 years in the amount of USD 200,000 should be repaid in 300 equal installments of USD 962.35. The final repayment amount is USD 288 704.31.
2.82% is the lowest mortgage interest rate – also the actual annual interest rate is the lowest among the available mortgage offers, making the Własny Kąt loan the most advantageous option on the market. The arrangements regarding the amount of the margin depending on the loan amount, the amount of own contribution and the use of other bank products by the borrower. The commission for granting a loan is also set individually in the range of 0-3.5% of the loan amount. To receive a GFI BP mortgage, the property must be insured against fire and other random events. At GFI BP, insurance costs 0.08% of the property value.
Mortgage – installment calculator
Calculate the mortgage installment with the Buendía family installment calculator and you will receive a repayment schedule for equal and decreasing installments. Here is a simulation of a mortgage, incurred for a period of 25 years, in the amount of USD 200,000, with an interest rate of 3%.
If your choice is a decreasing mortgage installment , be prepared for the fact that the monthly costs in the initial repayment period will be higher than in the case of an equal installment, but in the perspective of repayment of the whole loan you will save a large amount. In the analyzed case, you can save USD 9,276.79 on decreasing installments.