Mortgage over 15 years | Mortgage Loans

If you need to contract a mortgage for more than 15 years to be able to pay the monthly payment, it means that you are buying a house out of your possibilities. In general, a mortgage loan over 15 years is not convenient.

Some recommendations on the mortgage

Some recommendations on the mortgage

Let’s analyze this simulation in the case of a loan with Banorte,
credit for $ 850,000 pesos, at a fixed rate of 10.41%:

As we can see in the table, the total amount that we will end up paying if we contract the loan for a period of 20 years is almost half a million pesos more than in a 15-year mortgage.

Let’s look at another example,

Let

This time with Good Finance bank. With a loan also for $ 850,000 pesos under a fixed rate of 10.25% in terms of 15 and 20 years, we obtain the following results:

For less than a thousand pesos more, in this case, we save a very significant amount of interest. We save 5 years term. That is why we reiterate: if you need to contract a mortgage for more than 15 years to be able to pay the monthly payment, it means that you are buying a house out of your possibilities.

The most convenient mortgage loans are those that have the following attributes

The most convenient mortgage loans are those that have the following attributes

 

  1. Equal fixed payments throughout the life of the credit. Schemes with increasing payments are more expensive. The initial monthly payment is lower but increases year by year.
  2. Term no longer than 15 years.
  3. Fixed rate as low as possible. If you can get a fixed rate at low levels, and also reductions for timely payments, even better.
  4. Competitive insurance cost.
  5. No penalty for advance payments.
  6. Engage at least 20% plus notarial expenses. If you don’t have at least 20% of what the house you want to buy is worth, you can’t and shouldn’t buy it.
  7. If you quote to Infonavit, take advantage of the Infonavit credit. The fees that your employer pays to Infonavit go directly as prepayment to your mortgage credit.

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