For young people who are looking for a mortgage to purchase their first home , there are interesting opportunities for the current year 2018.
If up to the recent past young people were one of the most penalized categories in accessing credit, in recent years new solutions have been made available to meet the young aspiring borrowers.
Thanks to state incentives (such as the guarantee fund for the first home ) particularly advantageous, even couples of young people under 35 can turn on a mortgage with more ease and serenity.
We find in this guide how to choose the best mortgage for young people 2018.
Youth mortgage 2019: a guide on how to choose it
For young couples looking for a mortgage to finance the purchase of their first home, you need to pay close attention to certain parameters.
To find your way around the home loans sector, you need to request more quotes to compare the various credit offers available.
Calculate the actual cost of the loan
The first item to be examined carefully is the Spread, or the actual cost required by the lenders to grant the loan.
Beyond the Spread, watch out for interest rates (Tan and APR), whose sum allows you to calculate the actual cost of the loan.
It should be remembered that the APR indicates the global cost of the loan and includes the ancillary costs (appraisals and preliminary investigation), provided for the signing of the loan agreement.
Another important assessment: which interest rate to choose?
Young couples can opt for four types:
- fixed : in this case the interest rate does not change for the entire duration of the loan, keeping the installment constant
- variable : the mortgage payment varies according to certain parameters, such as money market and financial rates
- mixed : it allows you to switch from the fixed rate to the variable rate and vice versa
- with maximum ceiling : it allows you to set a maximum ceiling to the interest rate (called the CAP rate ) to “protect yourself” from possible sudden fluctuations in interest rates.
For any other information or doubt, you can contact an ABC Consultant who personally supports you to solve various problems and help you find the best credit solution.