Important Factors to Consider Before Applying for a Mortgage Loan

In today’s world, owning a home may seem like an unattainable dream for many. However, with the option of mortgage creditit is possible to make this wish come true without disbursing the entire sum of money immediately.

But what factors should you consider before embarking on this important financial decision?

The YouTube channel Luis Mi Negocios presented the most relevant on mortgage loans.

One of the fundamental advantages of mortgage loans is that they allow you to obtain a complete home without paying the full cost immediately.

This gives you the opportunity to invest and generate additional cash flow. Some people have acquired two or three properties through this type of credit, using them as sources of income by rent them.

Can you deduct taxes?

An interesting feature is that, when buying a house through a mortgage, you can deduct the actual interest you pay.

This implies subtracting the inflation of the period corresponding to the interest that you have paid. Said deduction can reduce your tax burden and be beneficial for your situation financial.

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However, before launching to apply for a mortgage loan, it is essential to evaluate the current economic situation.

Currently, interest rates are on the rise, which means that mortgage loans can become a little more expensive.

However, there are still banking institutions that offer rates below 10%.

The YouTube channel recommended visiting these institutions for the best bowl available and make sure that it does not affect the pocket too much.

The choice of the financial institution is crucial to obtain favorable conditions. It is recommended to use the simulator Condusef mortgage rateswhich will allow you to compare the different options and find the institution that gives you the lowest rate in the market.

Regarding mortgage terms, the most common are usually 5, 10, 15 and 20 years.

In the past, it was common to find 30-year loans, but these days they have become less frequent. It is important to take into account the commissions for opening credit and the late charges in case of late payments.

When choosing the type of rate, there are two options: variable rate and fixed rate. It is recommended to opt for a rate fixed and take advantage of low rates throughout the mortgage loan. In this way, fluctuations are avoided that could have an impact significant in personal finance.

Before taking the final step, it is crucial to take a careful look at the long-term costs. A fluctuation of just one percentage point in the interest rate can translate into an increase of one thousand or two thousand pesos in monthly payments, which can have an impact considerable in personal budget.