Housing and Real Estate

We all know the problems that cross many families for not choosing a mortgage that truly fit their current and future economy, the Bank always recommends that multiply the current interest rate up to 5%. This simple operation warns against possible increases in the Euribor and we can see if you really serious in the future we can continue to pay the mortgage.

The mortgage loan
The feature to note in mortgage lending is that we offer as a guarantee of payment to the finance our home, thanks to this important guarantee banks can offer interest rates much lower than in other types of loans.

Mortgage loans have become increasingly necessary due to high costs were reaching the homes and also the costs resulting from its own mortgage. Save for these expenses and the entry of the building is something very important today, since the entities are hardly willing funded more than 80% of the value of the house if we do not present an endorsement.

The mortgage is most interested
Usually also choose between an interest rate fixed or variable mixed, there are other things in which we set ourselves such as our level of indebtedness. It is important not to spend more than 30% of our monthly income to pay the mortgage and this can be adjusted by changing the amortization period may reach 40 or 50 years in some entities.

The only product that should be compulsory to hire a home insurance, which may be formalized in any entity or insurer. Many banks require you to hire different products to offer a differential lower or respect him favorable conditions, it is at this point that we really should figure out whether it is profitable to hire a pension plan or for example use their credit cards.

The most common fees on a mortgage are the opening and cancellation, in these two cases the financial institution is going to charge in respect of management charges a percentage of the loan amount we have requested. These fees can vary widely (from 0% to 3%) from one to another institution and are open to negotiation, so we need to have several offers in hand and negotiate with the client to give us better conditions.

Other committees that we can charge is the time to make a full prepayment or when we make a partial repayment to help reduce the monthly payment or the repayment period, in both cases we may charge a maximum of 1% for mortgages variable rate arguing that it is to offset the money they have left to win.

Mortgage costs
To formalize the mortgage loan requires the work of several professionals: notary, appraiser, registration, stamp, management, opening commission, if any. All these steps are necessary and of course in each of them must pay professional fees.

The costs can vary greatly from one Autonomous Community to another and found that in Madrid and Barcelona we will be spending more money than the rest of Spain.

Tax dollars to buy the house
* We will pay VAT in the case of a new home, in case of free pay 7% VAT and if it is a social housing would pay 4%.
* Stamp Tax, we will inform us of the cost it has on our community and that can vary from 0.1% to 1%.
* We will pay the Transfer Tax to make buying a second hand property and in this case would pay 6% (may vary in certain regions).
* In addition the purchase of housing and mortgage payment will also be subject to tax relief.