In recent months, mortgage rates are relatively low and this situation pushes many households to consider subscribing to this type of credit. However, there are some details that consumers need to consider before embarking on a credit. Here are some tips to help you choose your mortgage.
1. Analyze your financial abilities and do not overestimate them
Consumers who want to buy, build or renovate a home are regularly carried away by the desire to benefit from the ideal home. Indeed, it is not uncommon to see people who want to exceed their financial capacity to afford the real estate of their dream. Unfortunately, in this kind of situation, it is better to listen to the voice of wisdom and to limit oneself to what one can afford.
When you decide to enter a mortgage purchase procedure, you have to have a precise analysis of your abilities and your financial situation in order to define a certain amount of money that you can spend every month.
Also be careful not to lose life that the subscription to a mortgage credit will generate quite significant costs such as property tax , energy supply of the future building or maintenance expenses.
2. Take into account the costs in their entirety
When you are in a process of underwriting a mortgage loan , you also have to take into account the fact that between the mortgage rates that we see appearing and the real cost of credit, there is a certain gap.
Indeed, if we add the various costs inherent to the mortgage credit that are the insurance balance remaining due , notary fees , fees , registration fees or mortgage fees , we find ourselves quickly to a surplus of several thousand euros!
3. Follow the evolution of the rates
As we know, mortgage rates do not remain fixed in time. They evolve according to the economic situation, the real estate market and many other types of data. For this specific reason, it is necessary to follow the evolution of mortgage rates over the years because it is possible that rates will fall further and that a refinancing of credit may be interesting.