In a home loan, several factors make up the costs you may come up with with the financing itself. In particular, it will have to pay attention to the cost of the credit itself, which is composed of spread, bank fees, interest, insurance premiums and also indexed (the mortgage loan in variable-rate credits).
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This index, the loan rate, can affect your housing credit to the extent that your rate varies with the chosen indexer. That is, according to the term chosen, the bank varies, as does the rate of your housing credit.
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In this article, we will explain which are the most common bank commissions and also for which home loan services are targeted. It should be noted, however, that some commissions charged vary from bank to bank and that a consultation of the Standardized Information sheet is always advisable.
Housing loan has commissioned at the opening and over contract
In your housing credit, you will pay several bank fees, some of which are “all at once” at the opening of the process and others that are charged over the entire loan.
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Property Appraisal Commission: To finance a home loan, the bank needs to know reliably the value of the property. To this end, an assessment fee is charged, which will normally be in the range of two hundred dollars.
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There are, however, American banks that exempt the client from paying this commission if the property to be financed is already from the bank’s portfolio. It is, of course, a one-time fee.
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Dossier Commission: Which, depending on the bank, may also be called a study or opening committee. Here are the costs of credit analysis. It is also a variable value according to the bank and the value of the house influences it.
Formalization Commission: Amount paid when formalizing the contract and that serves to cover administrative and bureaucratic expenses that have occurred throughout the process. There are banks like the loan company or the Agricultural Credit that do not charge this commission.
Provision Processing Fee: Each time you make a transfer of the mortgage loan payment to your bank, the installment processing commission will also be included. This, unlike the previous ones, does not happen just once but keeps up with all the benefits you pay the bank for your home loan.
What other costs are there with the home loan? Is it possible to reduce them?
Another important “slice” of what you pay with housing credit relates to the life insurance that banks require when hiring the home purchase loan.
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The institution does so to mitigate the risk of, if one of the holders becomes unable to earn income, power in the same is reimbursed the home loan.
That being the case, when you take out a home loan you are required to take out life insurance. But be careful: you do not have to do it in the institution. You can go for life insurance outside of the ones offered by your bank and if you look at the market well you can save money.
And there is still another insurance that is required by banks when applying for a home loan. It is multirisk insurance and serves to protect the home (fires and seismic phenomena) and can also hire you in another institution other than the bank where you will do housing credit.
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And do not forget: there are also tax costs involved in housing credit. These include the Municipal Tax on Real Estate Transfer, which aims at taxing the right of ownership of the real estate in the USA and the Stamp Tax that is levied on the requested amount of credit and also on the commissions.
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Something that can lead to reducing your spread next to the bank is also the hiring of some extra products namely having an orderly account or even a credit card with the respective bank, helping to make the spread smaller.