We have been writing about credit housing, seeking to alert you to the potential savings of negotiating different offers before buying your home. In this article, we will focus your attention on the interest rate of housing credit, leaving some alert and suggestions. An assessment at flat-6.net
Mortgage Loans – Fixed Rate or Variable Rate?
The choice between fixed rate and variable rate will depend on your desire for stability. Normally, those looking for the fixed rate privilege a provision that is always the same. It does not want uncertainties or negative surprises. Of course when setting the interest rate you will have to “pay” for it. In practice, this “payment” consists of a higher interest rate because the long-term rates are higher than the short-term rates. Therefore, it will be supporting a superior service in the first few years to ensure that in the latter the service will be less.
Pay Attention to the Products You Hire to Lower the Spread of the Housing Credit
Many families are faced with a vast commercial offer to make it possible to lower the spread of their mortgage credit. In practice, in exchange for a few tenths of a discount in the spread, they end up hiring several products that in the end will increase the benefit. To facilitate the comparison of different proposals you should analyze the APR, which is the rate that makes the costs of the different products comparable.
If you have to contract products to ensure a spread reduction, we suggest you focus on savings products. In practice, it ends up “diverting” the savings in the spread to a savings product. It accumulates assets that can be used in the future and in an emergency situation. If we talk about savings accounts like PPR will still have tax benefits that at the end of the year may represent a few more euros of savings.
Pay Attention to Home Equity Life Insurance
One of the products where banks can get a very interesting return is the life insurance associated with mortgage credit. In practice, when contracting the credit we end up not paying attention to this cost. Unfortunately, with the passage of time, the insurance premium will increase significantly. By the way, we know several people who pay more for life insurance than they pay for the installment. We always suggest to these people that they try to negotiate the insurance premium because it is possible to save a lot of money.
Use a Housing Mortgage Simulator … But Be Cautious
To have the lowest spread in housing credit, you should try to simulate several alternatives. There are different simulators that tell you how much you will pay at that bank. Oliver Mellors chooses to assist its readers by analyzing their specific case and submitting credit applications to the bank that is most appropriate for each individual case. In addition, we negotiate the spread and the products associated with the credit, seeking to lower the cost to our clients to the maximum extent. Why not ask for our opinion? The process has no cost to you …