Buying a house is a very important investment, and if you decide to acquire it through a mortgage loan, you should do a good research to find out which are the most convenient payment and interest schemes.
What is an interest rate?
Interest refers to the payment you will make for the capital that the bank lends you , depending on the types of mortgage credit that exist. This means that the bank gives you a certain amount of money to buy your house, that figure is divided into years to find out how much you will pay each month and for how long, and subsequently to that amount the interest rate is added, which is defined when you sign your contract.
If after a while you decide that you should change the interest rate, you can consult with your bank executive to make the adjustments, it is possible.
Interest rates
The objective of a bank mortgage is to grant you financing, therefore, you must choose the interest rate that best suits your needs . Which one suits you? Now we will tell you more about them:
Fixed rate
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The interest percentage is defined from the beginning of the contract annually and is respected until you have completed the payment of your loan.
This type of interest is preferred by people who seek to be certain of how much they will pay during the life of their credit, in order to have a more detailed plan of their financial situation.
The advantage of fixed interest is that the monthly payments will not change even if there are movements in the financial market , that is, inflation cannot affect.
This type of interest rate is recommended for those who take out a mortgage for the first time because it is a simple and clear scheme that allows them to make accurate projections with their finances.
In general, all banks that have the mortgage credit product have both interest rate schemes.
Some banks that offer a fixed-rate mortgage loan are:
Variable rate
Unlike the fixed one, it changes according to the financial movements of the market dictated by inflation or the interbank interest rate . These changes occur on a daily basis, so the credits that are requested with the variable interest rate will change from month to month.
The advantage of this scheme is that the percentage of interest to be paid can go down if the market indicates it, which will reduce the monthly payment.
To define the interest rates in our country, there is a reference where the Equilibrium Interbank Interest Rate and the Bank of Mexico determine what the interests are according to the country's stock market situation. This is usually updated every three months, so mortgages that have variable interest are readjusted during these periods.
If you opt for this interest rate it is important that the bank clearly explains the conditions for you to evaluate if it is your best option.
Some banks that offer a variable rate mortgage loan are:
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Mixed rate
It refers to a combination in the movement of the interests of the two previous schemes. The idea is to have a combination that works for your economy. You can also ask your bank executive for details, depending on the bank.
Some banks that offer a mixed-rate mortgage are:
Increasing and decreasing rate
The increasing interest rate works as follows: during the first years of the loan's life, the monthly payments that will be paid will be lower, and as the life of the mortgage progresses, the monthly payments will increase following the agreement made in the contract. Here your bank executive must show you and explain your amortization table, which is the document where the credit payment plan is presented.
This type of interest rate suits people who are working and who will have increases in their income.
Some banks that offer a mortgage loan with these rates are:
Instead, the declining rate works when 12 payments have been made in a row and the bank thinks it can offer a lower interest rate . However, this amount applies to the first years of credit, and it is very rare for an institution to offer it. In Mexico Scotiabank offers it with a rate of 10.50% to 12.50%
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In reality, bank mortgage loans can be adapted to your needs to give you better options so you can buy your new home. The important thing is to know how interest rates are handled so that you can better decide which one suits you according to your interests and finances.
Resources:
THE BEST CITIES IN MEXICO TO LIVE DURING A HEALTH CONTINGENCY
SHOULD YOU BUY A HOUSE IN 2020 DESPITE COVID-19?
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OBLIGATIONS OF A SELLER WHEN DELIVERING A HOUSE
TIPS TO KEEP THE HOUSE NEAT AND CLEAN WITH CHILDREN
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