A mortgage is one of the longest and most serious liabilities we can incur. It is always done blind in a way. After all, we do not know what awaits us in a dozen or so years and whether we will continue to earn at the same level. We must be prepared for the fact that throughout the duration of the loan its installment will absorb a considerable part of our remuneration.
Paying off your mortgage can have very unpleasant consequences.
Therefore, it is in our interest to choose the best offer. Thanks to this, in the perspective of a dozen or so or several dozen years, we will be able to save a few, if not a dozen or even tens of thousands of zlotys. So the following question arises: what to look for with a mortgage so you don’t regret it later?
The most important elements of a mortgage
The basic parameters of a mortgage are, of course, its interest rate and the number of years we incur this commitment. Some people decide to spread the loan over as many installments as possible to save their monthly budget. Therefore, banks offer mortgage loans for 30 or even 35 years. However, if we have such an opportunity, a 20-year loan may be much more profitable. If we decide on it, we will pay interest much faster and start reducing the amount of the liability, while in a 30-year loan at the same time we will still have a huge amount of interest to repayment. In addition, it is worth remembering that even if the interest rate is lower in a bank, it does not mean that the loan is cheaper. Other fees, such as credit commission and compulsory insurance, should also be considered.
How to choose the best mortgage
The key is to compare the offers of as many banks as possible. Of course, pay attention to all of the factors listed above. You can create a special table for this purpose and use it to compare the total cost of all possible loans. Considering how serious and expensive a mortgage is, you can also consider using a credit counselor. His services are not very expensive and can save us a lot of money. Not only will it find us a loan on the best terms, it will also advise you on how to complete all documentation and complete all necessary applications.
Knowing what to look for with a mortgage, we are sure that we will not overpay and will not feel the effects of your mistake for the next dozen or so or several dozen years.