If you are interested in buying your first home, this is a favorable moment, the mortgage interest rates have been at an all-time low in recent months. A good starting point is online research: online mortgages for first home purchase are in fact very advantageous. What to consider to choose the most convenient mortgage?
What are online mortgages for first home purchase?
Mortgages for first home purchase are certainly the most requested: specifically aimed at those who are not yet owners, they allow you to finance the purchase of a property to be used as the main home.
These have a variable duration between 5 and 40 years and you can choose between different types of rate. With a first home loan it is also possible to take advantage of the subsidized state tax, equal to 0.25% on the amount paid, by moving the residence to the new home within 6 months.
Why opt for an online mortgage? In many cases, the absence of certain items of expenditure, such as the costs of preliminary investigation, appraisal and for sending recurrent communications and installation collection, allows lenders to apply reduced interest rates for these products online.
The advantages of online mortgages also include the possibility of sending the request directly via the internet in total safety and convenience. Once your application has been submitted, the bank or financial institution will carry out all the necessary checks of your economic situation and credit history, to assess your repayment capacity of the installments, according to the methods and timing foreseen in the amortization plan.
What types of interest rates are there?
The interest rate can be: fixed, variable, variable with CAP.
Generally the most requested is a fixed rate, which is established at the signing of the contract; in this way the amount of the installment that you will pay for the entire duration of the loan is constant (which does not happen with the variable rate).
It is important to pay special attention and do not hesitate to ask the bank for explanations on the method of calculating the interest rate, as this will mainly determine the cost of your financing.
What to evaluate to save on mortgages
To find the best bank loan, whether it is buying a house, renovating or simply a liquidity mortgage, it is important to follow a few simple precautions, to be sure of making the most convenient choice.
It is necessary to understand immediately the overall cost of the mortgage including any incidental costs. Find out in advance about the preliminary costs requested by the bank, which can be calculated on the amount requested or are fixed, and select the solution that is most advantageous for you;
Do not forget also to consider the notary fees: they are necessary expenses, but they can vary a lot according to the fee of the chosen professional. The cost of the mandatory fire and burst insurance policy also varies according to the company you request it from.
As with any other form of financing, carefully evaluate the interests: the TAN and especially the APR, to know immediately the real cost of the loan.
In fact, the TAN indicates the Nominal Annual Rate: it is the value of the pure interest you pay on the capital received. The TAN changes the reference index depending on whether you choose a fixed, variable or mixed rate mortgage. Obviously it is in your interest to keep it as low as possible.
The APR, on the other hand, stands for Global Effective Annual Rate and represents the total cost of the bank loan, since it also includes all ancillary costs. Therefore, to evaluate the various proposals of the lenders, you have to take this value into consideration.
Another factor to consider is the spread. What is it about? In the specific case of mortgages, it indicates the income that the bank obtains from the loan operation. Obviously, the lower spread applied by the financial company, the lower interest to be paid back on the mortgage. This parameter is independently decided by the Credit Institute, as long as it is within the parameters of the law. The Spread remains the same for the entire duration of the loan (even in the case of the subrogation), so it is essential to choose a mortgage with a low Spread from the beginning.
After evaluating all the costs of your bank loan, we advise you to calculate the monthly installment that you will have to pay, to understand in advance if your commitment is economically sustainable: it must not exceed one third of your monthly income.
How To Find The Best Online Mortgages For First Home Purchase
The purchase of a house, or another property, is one of the most important economic investments that can be made, the amounts of bank loans are more than considerable: for this reason it is of fundamental importance to weigh every aspect and be sure to find the most suitable solution for your needs.
Given the wide offer of the online mortgage market for the first home purchase, to find the right solution you will have to compare numerous proposals and request quotes for multiple mortgage offers, paying particular attention to the amount of the repayment installment.
Until a few years ago, comparing the various mortgage offers was a complex and laborious activity. Fortunately, today you can find the best bank loan within minutes, thanks to the online comparators. In fact, it is currently the most effective way to save time and money: from a single site you can access the different solutions, and also calculate the installment.