Who made the law made the trap. A saying as Castilian as this, during these times takes on more prominence than ever. And is that unfortunately, the small letters of contracts have become very famous, and to bad. And if not they ask the thousands of deceived with the preferential ones in the banks. It is clear that if they had read the contract from A to Z they would not have gotten into this mess. So, we are going to give you a few tips that you should know when you decide to put yourself in a mortgage, both for a house and to set up a business, the famous small print, to be controlled.
The amount of money that the bank will provide depends on the appraisal of the property, a charge to be paid by you, which is around 300-400 dollars, and your borrowing capacity. You should know that, since December 2017, the law states that the entity can only grant a maximum of 80% of the appraisal. That of granting 100% is already history.
The words term, quotas and amortization systems will come out. Well, the term is the time limit that is agreed between the entity and the customer to return the money. Usually between 20 and 35 years. The repayment fee is the amount of money, including interest that you will pay monthly. The system refers to how to calculate the fees that have to be paid during the period of the loan. Keep these words because they are basic.
To calculate what interest you will have to pay, you will be charged an interest rate on capital by adding the benchmark (which is usually the Euribor) plus the differential that the bank makes (eg + 0.25%). It is important to always focus on the APR (Annual Equivalent Rate), which is the real interest rate that is paid, as it also takes into account its possible revisions, commissions and repayment term, especially so as not to take surprises.
The financial institution will apply a series of commissions for managing the loan. They are the following:
Opening commission: A percentage that charges for the administrative and management expenses of the opening of the loan. It usually oscillates between 0 and 2% of the amount of the loan requested.
Commission for cancellation: It is applied on the total amount pending to be paid at the time of closing the loan.
Commission for early repayment or partial cancellation: Applies to amounts paid in advance over the life of the loan
If a subrogation occurs (change the holder of the loan) or a novation (renegotiate the conditions of your loan), in both cases, the commission charged by the bank or cash is a percentage that is applied over the capital that is still to be returned.
As you can verify, this to ask for a mortgage loan is not so easy, it has its small print that we have to know well. Now, if you have plans to go ahead with your mortgage, either for a house or for your business, you better report and well. Many companies organize cures and workshops to get to know you better.