It is advisable to gather information from various banks, so to choose that loan that is most advantageous and best fits their economic conditions for it are concepts that should be taken into account, and must be clear:
1. The interest rate may be fixed or variable:
If you choose the fixed rate, it remains unchanged over the life of the loan, so if the evolution of the market tends to rise, the consumer is protected from this increase, but if you tend to fall, may not benefit thereof. These rates, banks usually do not hire them, because the average life of a loan is to vary between fifteen to thirty years, according to economic capacity of the debtor, so that signal a fixed rate involves taking a significant risk to both the entity and the consumer. To agree a fixed rate entities require the repayment of capital are not excessively long, with a trend to ten years.
If you choose a variable rate, the total amount that will have to repay the bank will vary depending on how you do the benchmark, used to determine the interest rate.
Noted that the usual practice, combining fixed and variable during the first year the rate is fixed and the rest of the life of the loan is variable.
2. There are reference rates more or less objective, the most common applied in a loan are the Mibor, which is an interest rate set by the Bank of Spain and the Euribor that establishes the European Banking Federation, which will gradually replace MIBOR.
3. The differential is an added benefit enjoyed by the bank on the reference interest rate (MIBOR, Euribor …), the application of the percentage differential is determined by the price of the bank loan that gives the best price for a loan spread is established by applying the entity. As for the review, it is normal to take values from year to year so that if the first value of the reference rate is dated April 1, the next review it will be with the type value reference on April 1 next year, many institutions apply the review every six months. It has allocated between 0.5% and 2% above the benchmark.
4. The rounding. This is a practice to simplify the calculations, and in turn increase the profits of the entity, the reference interest rates are expressed to three decimal places as you choose to round the percentage to suit simple figures, both upward or downward.
5. The APR (Annual Percentage Rate). It is the element that defines us the cost of money represents the actual cost of a loan, is therefore the reflection percentage of all expenses attached to the loan (fees, interest, costs of opening, etc. ..) I will compare the different offers that are offered by banks.
6. Fees for full and partial prepayment shall be calculated on the mortgage loans with variable interest on capital pending repayment and may not exceed 1%.
7. The fee is a percentage that is applied to the capital that we ask the bank, and charged by the bank for the loan processing fees.
8. You can choose to professionals involved in lending (Ontario, manager, etc …).
9. If the credit institution offers insurance contracts a (fire, life), you know you can manage it with the insurance company of your choice.
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