What are the loan costs?
While we decide to take out a mortgage, every penny is certainly important to us. The loan profitability sometimes even takes the first place in its selection. However, it is worth considering first what specific fees are included in the loan.
Generally, we call it the cost of credit. A mortgage is not only a repayment of the sum borrowed by the bank together with interest, but other additions that determine not only its security, but also the additional fees for the bank.
We have a bank commission among the cost of credit
You don’t need to explain this name to anyone. It is simply the amount that the bank reserves for the mere fact of lending us the loan amount. Further costs are associated with the establishment of a mortgage. It becomes the collateral for the loan if we cannot repay it ourselves. Notary costs are also important. A loan is an agreement that should be made with your arrangements.
Therefore, if a mortgage is still at stake, a notary public is absolutely necessary. Another issue, however, is another item on our credit cost list. Every real estate should have a so-called land and mortgage register. If our four corners in the form of a house or apartment are not yet established, such a procedure is necessary. Of course, there is an additional fee.
Then, regardless of whether it is worth it or not, our credit must be insured. And while it is not always important for us, insurance such as for example against random events must be purchased.
Repeatedly the bank itself deals with this type of matters
It also defines such a point in the contract concluded between it and the borrowers. However, this is not the only insurance that should be or can be bought. Equally important is life insurance, with which banks increasingly go out to customers. Thanks to it, in the event of our death, an amount is provided that complements the repayment of the loan.
As a result, the bank does not lose much, and the borrower’s family can sleep relatively peacefully. Thus, in general, additional fees often reach the very value of the loan, which determine to some extent the overall cost of our loan. It is good for us when they are all as small as possible, so our wallet does not decrease on them very much.