Are you thinking of buying a house but you don’t have enough? One of the options that you can contemplate are mortgage loans . In the next column we will explain everything about mortgage loans and some tips for choosing the best mortgage loan .
What is a mortgage?
A mortgage loan is a loan granted by a financial entity for the acquisition of a property, guaranteeing the property itself, be it the house, department or land. Thus the acquired property becomes mortgaged. Therefore, the mortgage loan is also known as mortgage loan. Discover now: What are the best mortgage loans?
This does not mean that the bank keeps the new house or apartment, on the contrary. The one who buys it and is paying, lives in it while paying on time, month by month, to the financial institution that granted you the credit and when you finish paying the loan, and your corresponding interests, house, department or land will be released from Any debt that is, will be free of encumbrance.
Tips for choosing mortgage credit: it is very important to choose the mortgage loan that best suits your needs, that is, the credit that allows you to acquire or build the house or apartment that your family needs that also adapts to your monthly ability to pay.
Mortgage credit is the tool that allows you, in the short term, to make you a new or used house or apartment, your own land or build your dream home on your land, but so that this is not a dream, It is important that at the time of acquiring the credit, consult which financial institution offers you the best option, in interests, terms and … that really suits your payment possibilities, not only today, but in tomorrow …
What are the main requirements to apply for a mortgage?
The main requirements to apply for a mortgage or a mortgage loan are:
- Savings: banks do not lend 100% of the value of the house or apartment, so it is advisable to have something saved for the foot and paperwork; It is not advisable to ask for a second loan for it, because then you will face the need to assume two debts.
- Good credit history: the good handling of credit cards, personal credits, consumptions, is reflected in your history. If you do not have a credit history, do not worry, there are banks that despite this, consider you to grant you a mortgage, the important thing is not to have black dots, how to be in Dicom or be a delinquent debtor …
- Proof of income: this will show your ability to pay, if you are employed you will show it through your salary payments; If you work on your own, you can prove it by presenting fee slips, bank statements or annual tax returns. It is possible to supplement income with the family group.
- In mortgage loans, only the hiring and fire insurance with earthquake is mandatory. The other insurances are voluntary contracting.
Here you can review more information: What are the requirements to contract a mortgage loan?
Tips for choosing mortgage credit
National Consumer Service (Sernac) released a study, which analyzed the differences that exist in the final value that Chileans end up paying for mortgage loans , in the different banking and financial institutions of the country. The inquiry considered 44 banks, clearing houses, credit unions, and mortgage management agents present in the country (see list here). In these, it was evaluated how much a client finally pays, when requesting a mortgage loan of 1,500 dollars (around $ 37 million) for 20 years, which covers 75% of the value of a property of 2000 dollars.
The main conclusion is that there is a difference of up to 23% in the total cost of the same mortgage loan between the different institutions, that is, clients could save up to $ 11,900,000 depending on the entity where they apply for the loan.
A consumer, in this case, could end up paying between 2,043 dollars and 2,519 dollars. That is, almost 12 million dollars of difference between the total cost of the cheapest and the most expensive credit, ”said Sernac.
Likewise, it was established that there are differences “of up to 77% in the CAE, and up to 225% in the cost of the insurance of relief and fire with earthquake, reason why it is convenient to quote and compare before hiring.
This means that at the end of the credit payment, a consumer could pay 72 dollars, for this concept, that is, $ 1,805,904, while for the most expensive insurance he could pay 233.88 dollars, which is equivalent to more than 5 million 866 thousand dollars.
So the best advice to choose the mortgage credit , is to take the time to compare, choose, search, until you find the most convenient and economical solution. And for this, consider for one part the rates that apply, the values of costs and interests, insurance and terms, which in the longer term, higher interest you will end up paying.
Mortgage Loans: Where the credit is cheaper and more expensive
The results of the study also showed in which entities it is cheaper to ask for a mortgage loan of 1,500 dollars, a 20-year term with a fixed rate (which has an equal and known interest rate for all the years agreed), which can be known when looking the indicator called “total cost”, which is what the person will actually end up paying.
Where it is cheaper to ask for these types of loans is in the Honest Pocket bank (total cost 2,294 dollars), BancoEstado (total cost 2,303 dollars), the Bicehip mortgage manager (total cost 2,311 dollars), Scotiabank bank (total cost 2,316 dollars) and bank Falabella (total cost 2,333 dollars).
Meanwhile, where it is more expensive is Itaro bank (total cost 2,519 dollars), ThinkOne bank (total cost 2,496 dollars), Millionaire Mind bank (total cost 2,473 dollars), CCI bank (total cost 2,473 dollars) and Wisehand bank (cost total 2,455 dollars).
This may vary over time, so it is an index so that it is very clear the importance of quoting and searching until you find the optimum in each case.