You have finally found the perfect home for you, with the space needed for your family, right in the neighborhood you wanted: you can already imagine what it will be like to live there, host friends, you already have a mind where to place each ornament, only one is missing what … the mortgage.
Unfortunately it is not a negligible detail, in fact without this (unless you are in possession of the full amount to be paid) you will not be able to become the owner of the property of your dreams. So far nothing new. But, when you start looking for a mortgage, it’s natural to ask yourself: are all the same bank loans? Not at all!
On the contrary, there are many offers on the market, and it is not always easy to find the cheapest one. Since the amounts financed by mortgages are considerable, you realize how important it is to find the best mortgage for your needs.
But in the vast offer of the current market, how to find the best bank loans?
What to evaluate to save you bank loans
To find the best bank loan, whether it is buying a house, renovating or simply a liquidity mortgage, it is important to consider a few simple precautions, to be sure of making the most convenient choice.
It is necessary to understand immediately the overall cost of the mortgage including any incidental costs. Find out in advance about the preliminary costs requested by the bank, which can be calculated on the amount requested or are fixed, and select the solution that is most advantageous for you;
Do not forget also to consider the notary fees: they are necessary expenses, but they can vary a lot according to the fee of the chosen professional. The cost of the mandatory fire and burst insurance policy also varies according to the company you request it from.
As with any other form of financing, carefully evaluate the interests: the TAN and especially the APR, to know immediately the real cost of the loan.
In fact, the TAN indicates the Nominal Annual Rate: it is the value of the pure interest you pay on the capital received. The TAN changes the reference index depending on whether you choose a fixed, variable or mixed rate mortgage. Obviously it is in your interest to keep it as low as possible.
The APR, on the other hand, stands for Global Effective Annual Rate and represents the total cost of the bank loan, given that it also includes all incidental costs. Therefore, to evaluate the various proposals of the lenders, you have to take this value into consideration.
Another factor to consider is the spread. What is it about? In the specific case of mortgages, it indicates the income that the bank obtains from the loan operation. Obviously, the lower spread applied by the financial company, the lower interest to be paid back on the mortgage. This parameter is independently decided by the Credit Institute, as long as it is within the parameters of the law. The Spread remains the same for the entire duration of the loan (even in the case of the subrogation), so it is essential to choose a mortgage with a low Spread from the beginning.
After evaluating all the costs of your bank loan, we advise you to calculate the monthly installment that you will have to pay, to understand in advance if your commitment is economically sustainable: it must not exceed one third of your monthly income.
When the mortgage replacement becomes an opportunity to save
Each customer can decide to transfer an already active mortgage from one bank to another. In this case we speak of mortgage subrogation. At the time of the transfer, the conditions and interest rates of the loan can be re-discussed, which therefore could become more convenient with the new credit institution.
This operation is free of charge for the mortgage contractor, because the transfer costs are due to the bank that accepts the loan request. To find the best bank loan, you can therefore periodically check the conditions offered by the various banks and possibly decide to move the mortgage. It’s possible to do it more than once during the course of the loan.
Online Mortgage: Worth It?
Online mortgages represent a valid and advantageous alternative to traditional mortgages. The absence of certain items of expenditure, such as brokerage costs, the costs of preliminary inquiries, appraisals and for sending recurring communications and installation collection, allows credit institutions to apply reduced interest rates for these. products online.
The advantages of online bank loans also include the possibility of sending the request directly via the Internet in total safety and convenience. Once your application has been submitted, the bank or financial institution will carry out all the necessary checks of your economic situation and credit history, to assess your repayment capacity of the installments, according to the methods and timing foreseen in the amortization plan. The phases of evaluation and eventual disbursement of the requested sum often foresee rather short times.
How to find the best bank loans?
The purchase of a house, or another property, is one of the most important economic investments that can be made, the amounts of bank loans are more than considerable: for this reason it is of fundamental importance to weigh every aspect and be sure to find the most suitable solution for your needs.
Given the wide offer of the mortgage market, to find the right solution you will have to compare numerous proposals and request quotes from multiple mortgage offers, paying particular attention to the amount of the repayment installment.
Until a few years ago, comparing the various mortgage offers was a complex and laborious activity. Fortunately, today you can find the best bank loan within minutes, thanks to the online comparators. In fact, it is currently the most effective way to save time and money: from a single site you can access the different solutions, and also calculate the installment.
Find the best bank loan now and enjoy the house of your dreams!