How to choose the best loan offer?
If you decide to buy an apartment, house or other expensive investment that requires a massive cash injection, the most beneficial solution may be a mortgage or mortgage. This loan can also be used to buy a construction plot, or to renovate or modernize the premises intended for rent.
Although choosing this option one should take into account the long-term commitment to the bank, but taking into account the interest rate it is by far the most profitable option.
The most risky part of the mortgage is of course the collateral that the creditor requires. It is not only a mortgage established on the purchased property, but also a guarantee in the form of the borrower’s current and future assets.
Where to look for help and how not to be surprised by the additional costs?
The proposed comparison tool includes the value and type of real estate and the loan amount. In addition, it allows you to specify the repayment period as well as the type of installments (equal or decreasing).
The decision related to the loan should therefore be thoroughly thought out and based on rational calculations. Therefore, it becomes important to learn all information and secrets related to this provision. It is worth taking advantage of the available guidelines on the proposals offered by individual banks. The seemingly cheapest loan will not always be the case. To find out the current cost of the loan, check the total cost of the loan.
The most important criterion is the interest rate, which consists of: the bank’s margin and a fixed reference rate, depending on the level of interest rates in force in a given year in the country. It should be remembered that mortgage rates change (every 3-6 months), then a new repayment schedule should be expected.
What besides the interest rate?
We also add to the cost of the loan: commission charged for granting the commitment, fees related to the processing of the loan application, insurance premiums for the loan, preparation fee or costs resulting from the use of the grace period.
The actual cost is shown by the Actual Annual Interest Rate (APRC) and it should be used when selecting the cheapest offer.