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How do you know whether or not to take out a mortgage

How do you know whether or not to take out a mortgage

Mortgage - this is a serious and responsible step for every family.

Therefore, a decision on the mortgage loan must be taken carefully weighing all the "pros" and "cons", taking into account all the positive and negative sides.

More and more people ask this question. And the circumstances that impel this idea, there are quite different: a young family dreaming of their own living space, increasing the family and other circumstances. The most important thing to understand, whether to take a mortgage at all.
Buying real estate loan, it is important to understand thatwill have to overpay to 1.5-2 of the total amount. Also, you can not dispose of them in full, that is, sell or to exchange, and in the case of divorce, there will be additional complexity.

Circumstances requiring attention

If circumstances are such thatto purchase a house and just need to have your family's constant and high income, or the cost of removal of housing at the level of payments at an affordable mortgage. Perhaps, in the presence of the parent capital or there is the initial amount for the fee. It is also a great incentive is the opportunity to participate in a special state program to support the improvement of living conditions. All of this - a great reason to search for a bank loan with attractive terms and conditions.
When the family is not constant, stableincome or income is too low, have a bad credit history or unstable situation in the place of accommodation, you should think about the risk of such a step as a mortgage loan.

Selection of proposals

If all is in favor ofthe acquisition of property, you should look for banks with attractive credit conditions, and carefully examine all the pitfalls. This will have to visit may not be less than a dozen banks before signing the documents. In reviewing the proposals of banks should pay attention to the interest rate on your mortgage early repayment, penalties in case of delay receipt of money for loan payments, hidden commissions, conversion, surety, life insurance and health of the borrower, as well as a pledge.
It should be understood that in the first months, andpossibly years, the monthly payment will consist primarily of interest on a mortgage. Principal amount is to be reduced very significantly. Therefore, if you plan to quickly close a loan for housing may be more profitable to take a consumer loan for the full amount of the mortgage or a portion thereof.
In any case, buying a home in a mortgage is very crucial step length not less than 5-10 years. In making this decision, you need to firmly understand what does it do, and that you will benefit from it.

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