The Mortgage Loan is defined as the payment of the installments is guaranteed by a mortgage on a property, usually required to buy a house. Discover all the advantages of online mortgages directly from your PC, smartphone or tablet.
What is a Mortgage?
A mortgage is a contract with which the bank (lender) delivers to the customer (borrower) a certain amount of money. The customer agrees to return the same amount of money paid plus the interest agreed in a given period that generally varies from 5 to 30 years, in particular cases even 40. The most common type of mortgage is the real estate mortgage, granted to buy or building a property or renovating the house itself. The Mortgage can be a major financial commitment, to be evaluated with great care with your trusted advisor. The customer repays it in installments of a constant or variable amount, usually monthly or half-yearly. Let’s find out immediately the differences in mortgages at constant rates and variable rate mortgages.
What are fixed-rate mortgages?
In the fixed rate mortgage, interest is established at the time the contract is signed and remains constant throughout the duration of the loan. These rates are calculated every day by the European Banking Federation, and the spread, or the “top-up” that each bank decides to add to the base rate as its own revenue. The fixed rate even if at first glance may seem higher than the variable rate, on the other hand, ensures greater security precisely because it is not subject to market fluctuations. This type of mortgage is, therefore, suitable for those who have constant; income and want to plan in advance the amount to be paid to the bank, without having nasty “surprises”.
What are variable rate mortgages?
In contrast to fixed-rate mortgages, floating rate mortgages change according to the performance of the financial market. This form of Loan is based on the Euribor reference index (Euro Interbank Offered Rate) or the rate established by the Central Bank of Europe (ECB). Specifically, if the latter rises, even the mortgage payment increases, if, on the other hand, the cost also decreases. In this case, the initial rate is respectively lower than the fixed one, but, precisely because it is variable, it can increase according to the market trend. This type of mortgage is suitable for people who can bear a significant increase in the monthly payment or who have expectations of increases in income in the future.
Are there other forms of financing in addition to mortgages?
Of course, in addition to mortgages, banks and financial companies offer numerous products, here are the following:
- Personal Loan
- Employee loans
- Delegation of Payment
- Leasing financing
- Advance TFR / TFS
Apply for a mortgage online
Anyone can apply for a mortgage. For example, even young people who need money for the purchase of the first house, as long as they are adults and able to show that;they can return the sum due on time. The maximum age is usually established according to the type of products offered. Nowadays it is even easier to request it, banks and financial loans are granted online, so you can receive your quote and start the practice directly from your home PC.
How much can I apply for online mortgages?
In general, the intermediary grants an amount that does not exceed 80% of the value of the property, a value established on the basis of an expert’s report. For example, if the property of a customer has a value of € 200,000.00, the customer can request up to € 160,000.00 (or 80% of the value of the property). Sometimes intermediaries grant mortgages equal to 100% of the value of the house, obviously, an additional guarantee is required, such as a surety of a third party or a mortgage on another property.
What installment can I afford?
Before applying for a mortgage, you should carefully evaluate your income, even in perspective, and your monthly availability net of fixed costs. It is good that the installment does not exceed one-third of disposable income, in order to cope with current expenses, unforeseen expenses and possible income reductions (illness, accident, dismissal). Requesting a Mortgage is an important choice, we always recommend to find a trusted consultant and submit the request to your assessment.