FINANCE AND MORTGAGE
Usually to buy a house is going together with the need of a mortgage for first home or with a restoration mortgage. Besides mortgage you need also to find a suitable home and for this you need a serious and professional real estate agency.
Mortgage it is one of the most common way of financial but it is important to choose the proper one to avoid to be for 20 or 30 years living with a mistake. Especially for the first home it is fundamental to obtain an instalment possible to pay and possible fixed.
Information On Mortgage
Mortgage is an easy financial instrument but there are some aspects important to know. As suggestion we can tell you to ask for more than one estimate. Banks according a mortgage are earning money without risks that’s why they are in a very big competition. You can also ask for an estimate from different notaries.
Mortgage First Home
Mortgages for home especially first home are the most famous and the one by which banks is making competition between them. For this reason it is important to evaluate different estimates from different banks. To save even 10€ for each instalment it means, taking in account how many years a mortgage is persisting, thousands of euro at the end of the mortgage.
Facilitation Mortgage First Home
When you subscribe a mortgage for first home there are lot of facilitation; it is possible to deduct from taxes (IRPEF) 19% of interest and the costs. By the facilitation you can deduct: passive interests you pay with each instalment, accessory costs to mortgage (notary expenses, taxes etc.)
How To Proceed To Subscribe A Mortgage?
Basing on the interest rate you can have mortgage at variable rate, fixed or both of them together. When you choose it is important to evaluate what is the best for our situation. Let’s understand better the different cases:
- Variable rate: when rate changes basing on parameters fixed in the contract. In this case the rate will change when interest rate is changing in the market. On basic parameters it is applied a spread that is the earning for the bank. This kind of mortgage can offer an interest rate low at the very first beginning and it follows market course, it is advantageous for long term mortgage
- Fixed rate: when interest rate is kept fixed for all the duration of mortgage. By this kind of rate you can exactly know which is the amount of the instalment and the total amount of the mortgage. This kind of mortgage gives the possibility to fix clearly the family budget and to cancel risk of increasing in interest rate.
- Mixed rate: when it is possible to exchange the rate form fixed to variable depending on some condition or on some expiry. By this rate you can personalized the mortgage following future course of the interest rate on the market.
- Two rates: when the amount is divided in two parts one at fixed rate the other at variable rate. This is a middle solution between first and second kind of mortgage.