How to find the cheapest mortgage deals of 2020
When looking for a loan, envying the least expensive product means saving even substantial amounts. Interest rates and periodic expenses have a considerable impact on the cost of the loan, and can decide on its convenience. So let’s see some simple rules to save on the mortgage.
The first thing to do to find the most convenient mortgage is to evaluate the spread. This value indicates the bank’s earnings on the loan, that is, the cost that the lender applies directly to the customer for the loan.
The spread contributes to the formation of the interest rate, adding to the reference parameter used: Eurirs for fixed rate mortgages, Euribor for variable rate mortgages. Consequently, the higher the spread value, the higher the interest to be paid.
Another value to consider is the Taeg. It represents the real cost of the loan, i.e. all the expenses that the beneficiary must obligatorily face, expressed as a percentage. In addition to the pure interest, it includes ancillary costs, appraisal and subscription costs and various other expense items.
As with the Tan, the Taeg indicates the annual cost of financing and can therefore be easily compared. It is enough to compare the Taeg of two mortgages to recognize the cheaper one with a single glance.
Save on mortgages with first home discounts
The current legislation allows you to save on the mortgage thanks to the tax deductions recognized to those who request financing for the purchase of the first home. In this way it is possible to significantly reduce the costs of the mortgage.
An interest income tax deduction of 19% is envisaged for interest expense, calculated on a maximum amount of € 4,000 per year. The concessions are recognized both for purchase purposes and for the renovation or construction of the house. To obtain them, it is necessary to be in possession of all the requisites envisaged by current legislation.
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