Best Mortgages - February 2021

 Best Mortgages - February 2021

Best Mortgages
 Best Mortgages - February 2021


How do you get the best mortgages in 2021?


If we want to get the best mortgages to finance our home, we should look at both the interest, products and associated commissions. For this, it may be very useful to use some tools such as those provided by 77lawyer.com


Home loan comparison

This will help us compare the characteristics of up to four mortgages at a time. In this way, it will allow us to create an overview of the characteristics of the main mortgage loans that are currently being marketed.


Ranking the best mortgages

Another option is to visit the page with lists of the top 10 mortgages by type. Thus, we will have a more panoramic view of the most attractive mortgages and their properties. Of course, ratings are updated periodically.


Graphic calculator

The Bank of Spain recommends that no more than 35% of our income be allocated to cover our financial debt, including mortgages. For this reason, we make sure we can afford them. If we choose a variable price, it is necessary to make calculations according to different Euribor scenarios. We can do this using a simulator.


What are housing loans?

We have already said that a mortgage rates or mortgage loan is mainly used to finance a home purchase. However, this is not the sole purpose of this product, as it can also be used to meet other needs. Let's see what we can use these credits for:


to buy a house or any other kind of property. The main purpose of mortgage loans and mortgage rates is to finance real estate acquisition: first or second house, building, garage 

To build a house. We can also rent one of these products to build our future home. In these cases, banks offer a specific loan called a self-promotion mortgage.


To fix the property. If we need money to make a repair, we can mortgage the house to get it.


Mortgage terms may vary depending on the purpose of it, but also on other aspects such as the client's profile or the risks associated with the process.


What is the difference between a loan and a mortgage?

In general, when we talk about finance for a home, the terms "mortgage loans" and "mortgage loans" are used interchangeably. However, although used synonymously, there are important differences between these two concepts:


Mortgage Loans: In these cases, the loan amount, refund period, interest rate, and repayment method are agreed with the bank. The latter are usually French, where more interest is paid and less capital is paid at first, and little by little, the formula is reversed.


Mortgage Loans: Unlike mortgage loans, these loans allow us to actually pay money. That is, they are lines of credit or open mortgage through which we can, if we need financing for other projects, withdraw funds without having to apply for a new loan. This way, we can have less interest than consumer credit.


Mortgages and home loans can have fixed, variable or mixed interest. For now, the first is gaining more popularity, because banks have drastically reduced it to entice customers who do not trust Euribor and are looking for security.


What is the difference between a home loan and a personal loan?

In addition to mortgage loans, the bank product catalog also includes so-called personal loans. Now, although both are credits, there are important differences between their characteristics and purpose. We explain it in more detail below:


Personal Loan Guarantee is an exclusive personal guarantee (current and future assets). On the other hand, a mortgage guarantee is a personal guarantee and a mortgage (financed housing).


The purpose is also a different habit. A mortgage loan is generally required for a regular residence or a second home, while a personal loan is required for consumer goods or services (to buy a car or for renovations, etc.).


The mortgage repayment period is longer (up to 30 years, and even some of them up to 40 years) of the personal loan repayment period (the average duration is a maximum of 5 years, although there is a period of up to 10 years).


The interest rate on a mortgage loan is lower (average interest is about 2%) than the personal loan rate (about 7%).


Additional expenses are not found in personal loans (notary, valuation, taxes...).


Also, due to the difference between the amount of both producers, a personal loan can be obtained in a maximum of days, while the mortgage grant process can take two months.