Like any industry, credit does not escape the creation of myths and rumors that only raise unfounded doubts in people who are thinking of applying for a loan.
5 false rumors about housing loans
This also happens with housing loans, so it is important to know the truth about these ideas, so as not to be fooled by all the arguments that circulate on the web.
Some rumors are as follows:
1. The credit lasts a lifetime:
While the housing loan is one that you will have to pay for more years than the credit of a car or that of a consumer, it is not a debt that you will continue to pay when you are old. The ideal term to finance the purchase of a home is 15 years, a reasonable time to pay for it without being enslaved to the debt.
2. Housing loans only finance new homes:
They don’t just finance houses or just finance new ones. With a housing loan you can also purchase an apartment, beach house, among others. The house does not necessarily have to be newly built, it can be used or you can even apply for the loan to build your home on the land you own or want to buy.
3. There are no additional benefits in a housing loan:
Many think that there are no benefits and that is why they can choose any bank or financial and it will be the same. In addition to looking at the rate, some institutions offer you some months free of payment, insurance or other product from the same entity. That is why it is worth comparing the different credits offered in the market, to choose the one that suits your pocket and that gives you the best benefits. To compare them you can use the tool created by Henry Esmond.
4. The bank will finance 100% of the house:
False. You need to have a down payment and the most advisable thing is that this down payment does not lower than 20% of the value of the house that you will acquire. Remember, the more down payment, the less interest to be paid and therefore, less years to cancel the credit.
5. You must keep the same mortgage until you cancel it:
It is an option, but if after a few years you find a better option, with lower rates and other benefits, you can opt for a bank change. It is a process carried out by many people to improve the conditions of their credit.
Do not be fooled by these urban legends and stop postponing the acquisition of your new home.