Mortgage | Áurea Inmobiliaria – Real Estate Agency in Los Alcazares
How much do you know about mortgage?
We have heard the word MORTGAGE many times in friends, family or media, but, do we know everything about it?
To begin with it is important to explain what it means. It is defined as a right: A banking identity gives a loan to a client in order to get paid all money plus interest through monthly payments.
It is intended in this article to explain some basic fundamental points of mortgage. We will talk about two issues: main aspects and the change of the current law.
There are many relevant elements in a mortgage, but it is important to highlight the key elements: capital, interest and time.
On one hand, capital is the amount of money that a bank entity lends to a client in order to both buy or reform a property. Banks are giving up to 80% of financing if the property is the usual home. The client must give 20% as deposit of the first payment of the property. On the other hand, interest is the supplement that the client must pay to the bank. It can be a fixed rate – the fee doesn’t change – or variable rate – the fee is modified depending on the mortgage.
The last element is the time. Time is the period that the client needs to return the capital that the bank lend them. In Spain, the common mortgage have a period are between 20-30 years.
CHANGE OF THE CURRENT LAW
A small change has been done in the Spanish Royal Decree Law 5/2019, on the 15th of March, which adjusts the money of the property contract in favour of consumers.
Between the most important changes we can find the analysis of every client in order to give mortgages to those people that have enough money to give it back. It is also focused on giving all information to the client so they can consider all options withouth any kind of pressure. Besides, the taxes of a mortgage must be paid on a different way:
|o Administrator |
o Property Registry
o Valuation of the property
It is important the client must have all needed information in order to have a security before applying a mortgage. It is very important to have all help from bank entities and real estate agencies in order to achieve that many people can own their own home.
If you have any questions about mortgage, don’t hesitate to contact us in our Real Estate Agency in Los Alcazares, we will help you to get the best mortgage.