Mortgage: things to consider in your properties purchase process

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Buy a property in Spain,Properties documentation,Real state stuff
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Buying a home is, nowadays and if we do not have the help of expert real estate agents, a headache due to the need to choose your mortgage that suits our needs. In Grupo Mar de Casas we help you today to know all the terms related to your future mortgage.

Mortgage types

The mortgage is the document signed between the client and the bank to obtain the economic financing for the purchase of a property or business premises. With the mortgage, the bank will lend you part of the value of the property in exchange for a debt that will accompany you for as many months as is written in the mortgage clauses (always together with the corresponding interest).  Mortgages are, in short, a financing of the property in instalments. From Grupo Mar de Casas we must clarify the difference between mortgage and mortgage loan, the first term being the right or guarantee that the bank has over the property while the mortgage loan is being paid, understood as the debt that the client pays month by month. But, at this point, do we know the elements of a mortgage and which are fundamental for its calculation?

What variables do I need to know in order to calculate my mortgage?

The calculation of your mortgage is divided into three fundamental concepts known as capital, loan interest and mortgage terms. The mortgage capital or money that the bank lends you to buy the house, granted through a prior study by the bank of your employment and economic situation and which ranges from 80% to 100% of the valuation (although they rarely offer the total amount of the purchase of the house). The mortgage interest is the percentage to be paid for the loan, which may be fixed or variable and the mortgage terms or years to pay the mortgage, which may vary between fifteen and thirty-five years, always depending on the value of the loan and its repayment terms. After knowing these terms, which is the most suitable mortgage for my future home?

Fixed mortgage: peace of mind to pay month to month

The fixed mortgage keeps fixed the instalment to be paid and the interest percentages to be paid by the bank’s client, not being affected by the Euribor rises and being a higher interest rate and a shorter amortisation term. In these cases, the fixed or partial repayments in order to reduce the term of the debt are set much higher than in the rest of mortgages. Fixed mortgages are ideal for people with average salaries and who want to enjoy their home without surprises or sudden changes in their monthly mortgage payments.

Variable mortgage or analysing the Euribor at a glance

The variable mortgage suffers constant variations due to the rise or fall of the main European mortgage index, the Euribor, so it is suitable for the bravest hearts. So if the interest rate goes up you will pay more per month for your mortgage, and if it goes down, your monthly mortgage payment will go down. In the variable mortgage, fortunately, the amortisation periods are longer and commissions are lower, so if the capital owed on your mortgage is small and you can afford it, go for a variable mortgage with your trusted banks.

Mixed mortgages: the middle ground is where it’s at

In the mixed mortgage you have fixed interest rates (in the first years, usually in the first ten years of the loan) and variable interest after these years, so your monthly payments will vary, so if you are an analytical, methodical person with a stable job over time, go ahead with the variable mortgage!

Your mortgage, with Grupo Mar de Casas

At Grupo Mar de Casas we have been managing the purchase and sale of properties in Murcia, Alicante, Madrid and Almería for a decade and helping our clients to find the best conditions for their mortgages and to process them in the simplest and quickest way possible, goodbye to unnecessary paperwork! Contact us, we will help you find the house of your dreams and manage your mortgage without obligation, guaranteed!