Acquiring a property through a mortgage loan is a big step in financial life. It is not a contract of a few years but on the contrary, a couple of decades, so reviewing it to the fullest and fully understanding what each clause means is the best decision that can be taken to make sure you pay the agreed amount and nothing more.
However, this is not always what happens
Since many times people tend to look at the “important parts” of the contract, ignoring the clauses that could just harm them. Although the interest rate is important, there are some other things that should get your attention, these could be called “secrets” of the contract because if you do not understand them well, they will go unnoticed until you have to pay more.
Commissions. At the opening of the credit, for the study of the credit or even commission in case at any time you want to change the conditions of the mortgage (refinance, reduce the rate, etc.). A commission could also be included for changing the mortgage (debt purchase).
Interest of delay. What if it takes a few days to pay the fee? This delay will result in the payment of an extra monthly fee, the amount or percentage is set in the contract and should be taken into account because if this delay occurs sometimes a year, you will end up paying more than you thought.
In case of not being able to cancel the mortgage
The bank also establishes the steps to follow if the client cannot cancel the credit; for example, it could deliver the good as part of payment, but if its commercial value does not cover the amount owed, it could proceed with the rest of the debtor’s assets.
Even if you don’t believe it, these are things that you should discuss with the advisor, because they could be decisive when choosing a mortgage. The first step will always be to look at the interest rate, comparing all available options , but then you must also take into account the mentioned things and other elements that may appear.