From the moment you plan to acquire a house or apartment, it is common for endless doubts to appear due to the myths that exist around home loans, especially those that have to do with advance payments on mortgage loans and your interest rates.
There is a certain fear of assuming a large debt, but the reality is that we do not have the cash to make the purchase and our options are limited to making an equity in this way.
But not everything will be a nightmare, mortgage loans are designed so that people can assume them and move forward without this affecting their quality of life.
It must be borne in mind that the objective of a loan is to allow us a margin of maneuver to make other investments, not lose liquidity and, as far as possible, make advance payments that make the debt lighter, either in time or amount .
To try to clear up some of the most common questions about the time in which the installments of a home loan must be covered, here we explain some of the myths:
- It is thought that making advance payments can increase the monthly payments.
- It is not advisable to make advance payments at the beginning of the loan because all the money is to pay interest.
- It is better to pay the mortgage as soon as possible and avoid future headaches.
- By depositing money for the repayment of the debt, you can reduce either the monthly payment or the term of the loan, which totally benefits you because it allows you to save on interest payments.
- It is in the first five years of a loan when the effect of advance payments is most powerful.
The recommendation is to make payments during the first five or up to eight years of the mortgage, when more interest is paid and less is contributed to principal.
In this way, everything you advance will go directly to your debt and the term and interest payments will be reduced.
If you have enough money you can make the advance payments that will go directly to capital.
Previously, it was very common to be penalized if you advanced payments. Therefore, from the moment we choose the financial institution to exercise our credit, it is important to ask about this.
Types of interest rates you need to know
Would you like to invest this year in the purchase of your house or apartment?
So before applying for a mortgage loan it is important that you know the three types of rates that are currently handled in the market: variable, mixed and fixed so that you can estimate the cost of the loan and make a better decision when acquiring your equity.
Some people when they start the process of buying their home, pay more attention to factors such as the maximum amount of credit they want to achieve or the percentage of the rate, but do not consider the details of this, which prevents them from having all the information necessary to make a better purchase decision.
Types of rates on a mortgage loan:
- Fixed rate: the percentage is fixed throughout the loan. It is usually one of the highest but safest rates at the same time. It is the best option for people who want to maintain stability in their loan, who have a regular, stable, long-term income and do not present significant variations.
- Variable rate: this type of rate can change every certain period, increases or decreases according to the behavior of the economy. It is lower than the fixed rate but involves greater risks. It is established through a reference index which is reviewed periodically. Accepting this rate is only recommended if you know that your income will increase.
- Mixed rate: it is a mixture of the previous two with which you can pay the loan during the first years with a fixed rate and then with a variable.
So what is the best rate for you? The answer depends on your income, financial situation, needs and the way you want to pay it.
The important thing is that you look for a home loan that adapts to your profile and not you to it. Regardless of which one you choose, remember that you will be protected throughout the process.
Nowadays the credit resource has become a recurring alternative to buy goods with a high cost and that it is difficult to pay in a single installment.
But just as the opportunity to buy on credit brings immediate benefits, this type of purchase can trigger some inconveniences in the future that can only be avoided by paying the debts in full to have an impeccable credit history.
There is nothing more rewarding than paying off a debt on the best terms and having an image that will speak for itself and will open several doors for you.
Being a good payer means that you will be backed by a good reputation and you will have some benefits and rewards.
Having an impeccable credit history is reflected in the possibilities you will have to obtain important credit in the future, be it automotive or mortgage.
The cleaner your record, the greater the possibility of obtaining the desired credit.
Home loans for good payers
In the case of mortgage loans, the same situation happens, any financial institution with which you intend to apply for a home purchase loan will need to know your references, as well as your credit behavior.
To the extent that you manage to get records where there are no penalties or arrears, you can increase the chances of accessing the benefit and sometimes even some extra courtesies since with good credit behavior, capital flows and becomes assets and investments.
Being a good payer can grant greater lines of credit, that is, having a record of payments on time and not having penalties for arrears makes it easier to access higher credits.
In addition, having a good credit history you can access preferential rates that are much more comfortable and the main thing is that you will not spend more money than stipulated in the payment scheme, because you will save on the extra penalty payment.
Benefits of a good payer
Although some people reject them, it is important to consider that with the benefits of being a good payer you can access solution tools in case of something unforeseen.
That is why it is important to demonstrate discipline, good behavior and intelligence in the management of resources that you have on loan, because managing good paying habits not only influences the granting of loans that you need in the future, but there are activities of daily life that they deserve it.