For almost everyone, a mortgage means a serious commitment that will accompany us for many years. Every month we will feel his presence because the next installments will charge our wallet. There are various factors that determine how much you pay back. Long before making a decision about choosing a loan for an apartment, we should analyze each offer in terms of the costs that will have to be incurred then. Making the wrong choice may prove to be a problem that has accompanied us for several years.
Mortgage costs depend on many aspects that we don’t even realize at the beginning. The final amount is influenced by interest or repayment schedule. Commissions as well as all types of valuation costs should be taken into account. Sometimes it happens that the costs also include the need to purchase other financial products.
Interest rate is one of the most important costs. It is calculated on an annual basis. It includes elements such as interest rate. It is variable, which is not influenced even by banks. The interest rate is set by the Central Bank. When the decision is made to lower rates, the interest rate on the loan is also reduced.
The next element affecting the final cost of the loan is the margin. It is not variable, it is set by the bank and remains the same throughout the loan period. Each bank has its own rate. The margin cannot be affected by aspects such as currency and commission.
A mortgage necessarily having to pay installments. They consist of interest and capital parts. It is worth having such knowledge before starting to search for the best offer available on the market at any given time. Interest rates affect both components that create interest rates.
The loan repayment period is also important for the amount of mortgage costs.
Recommendation S clearly states that banks should not grant such loans for a period longer than 35 years. Lower costs are incurred by those who incur such a commitment for a shorter period. However, higher installments appear here, which may translate into rejection of the application due to insufficient creditworthiness.
The basic costs are often accompanied by additional fees. The fee that appears almost always is the commission for granting the loan.
This is a fee that is only paid once. It usually takes place when the loan is paid out. You can make this payment in cash or by bank transfer. It is also possible to add it to the loan amount. The margin in Poland is around 2 percent. It also happens that some banks set additional requirements, without which it will not be possible to grant a loan. To secure their interests they need a guarantee in the form of a low own contribution insurance.
Each bank requires borrowers to take out life insurance. Paying premiums for this is an additional cost that cannot be avoided. The price of such insurance depends, for example, on the duration of the liability. The longer the loan is repaid, the higher the cost of life insurance.
Bridging insurance is justified when we decide to buy a flat or house that is still under construction.
Less often, banks decide to include additional fees in their loan agreements. However, if they appear, they may take the form of an obligation to set up and maintain a personal account or to use a debit card. The last cost that appears when taking out a loan is the cost of valuing the property that is the subject of the loan agreement. The expertise is carried out by a property appraiser, which increases the amount of this cost. However, this is a one-time fee.
The desire to repay the loan earlier, paradoxically, does not mean that we will pay less. This is only possible with some banks. Some do not charge any fees. It is best to choose only those offers that do not require any such fees.
Before signing a loan agreement, it is worth making a simulation to determine the final cost of the loan. This is certainly a sensible move that allows you to make the optimal choice. Thanks to this analysis, we can save up to tens of thousands of zlotys.