Mortgage Types in Spain
Mortgage Types in Spain Mortgage Types in Spain Are you looking for a property for sale in Spain? If your answer is a yes, then Calpe real estate and Benidorm real estate should be one of your first places to have a look.
However, there are a few things you need to learn before you decide to start looking at Calpe apartments for sale.
An Overview of Spain Houses for Sale It is effortless to own a home in Spain, and you might have seen a ‘Calpe Properties for Sale’ or a ‘Costa Blanca Properties’ banner as you were searching for a place to start. Altea Villa in Benidorm is a great choice. You can also find ocean view apartments in Costa Blanca and Calpe.
Real estate Immo will not let you go wrong on any house purchase in Spain. Types of Mortgages in Spain It is highly recommended that you know how Benidorm real estate and Calpe real estate markets operate before you put a down payment on a house.
Here are some of the mortgage types in Spain. Mortgages that are interested only: Here your loan remains constant through the term of your purchase. Within this duration, only the interest will be paid.
A mortgage that uses an interest-only purchase can only go as high as 70% for a loan value. Mortgages with capital and interest: In this mortgage policy, the loan is paid during the term of purchase and the interest is added to the loan amount you took.
In most cases, you will pay more money per month as compared to one who only pays a monthly interest for the loan on a mortgage. This loan is taken for about 80% of the house’s purchase price. A combined mortgage policy: There are some banks that will put together the two types of mortgages in Spain.
Here, the interest is only paid within the initial stage of the term, a third of your term or you are given a definite sum of years to finish your payment. Things the Bank Considers in Processing your Mortgage for Property for Sale in Spain The first thing that a bank will look at is the age of the applicant. For most banks, the limited age is about 70 years. Others have more extended age limits that go to 80 or even 85 years. Some banks in Spain will let a younger person co-sign with an old person so as to extend the mortgage term. Another vital thing to be considered by a bank is the net income of an applicant.
About 40% of the net income you get can go to mortgage payments. The higher the net income, the more chances of you getting a mortgage loan. The value of the property will affect the mortgage plan you get. Banks usually hire an independent tax firm to do their valuations. The actual selling price and the valuation of the property will be compared and whichever has a lower value will be used to determine the mortgage you are granted.
In most cases, residents in Spain get more and better deals on Mortgages than people who are non-resident. It is a matter of calculating the risks related to residents compared to those of non-residents.
Also, whether the house you are buying is your first or you have purchased another one before is a determining factor on how your mortgage request is handled.
The next time you see a ‘Spain Houses for Sale’, ‘Calpe Properties for Sale’ or ‘Costa Blanca Properties Costa Blanca Properties ‘ sign, remember the above points, and you will be well covered.
Consider using Real estate Immo as your real estate agent for Calpe apartments for sale. With the right channels, buying a house in Spain is hustle free. www.realestate-immo.com