11 mortgage mistakes that most people make

DEC 13, 2017 AT 01:48 AM

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7. You chose the longest repayment period possible

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It’s quite a good feeling when you manage to obtain a loan. However, it won’t be a clever idea to stretch the repayment period as much as you can. For every additional year, you’ll pay a higher interest rate, and in the end it will be such a huge overpayment.

Just consider wisely what would be an optimal repayment period based on your income. Make sure that the contract will allow you to pay early with reduced interests or flexible installments. This is important because you might change your job or get promoted to a position with a higher salary.

 

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Do you have spare 150 000 $ in your pocket? This is the amount of money one can easily overpay after taking the wrong kind of loan. Mortgage has both its good and bad sides. It allows us to acquire and live in our own house and stop paying rent every month.

8. You don’t choose your own repayment schedule

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Every mortgage can be changed according to your needs. Remember, it’s the banks and financial companies that want you as their client. Huge level of competition on the loans market allows you to choose between companies and sometimes even to haggle for more rewarding conditions.

Choose your own repayment schedule – make sure it’s convenient for you. This means that you will get a chance choose the repayment dates and the repayment amount per month or year. Sometimes it’s more convenient to make payments every week, whereas in other cases people would rather pay every three months.

 

ADVERTISEMENT

Do you have spare 150 000 $ in your pocket? This is the amount of money one can easily overpay after taking the wrong kind of loan. Mortgage has both its good and bad sides. It allows us to acquire and live in our own house and stop paying rent every month.