What are the hidden costs of the mortgage?

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Reviewing the mortgage contract in detail to detect the conditions with which we do not agree is something that may seem obvious. Reviewing the clauses and conditions of the mortgage carefully is crucial, since these conditions may indicate interest, commissions or other expenses that may increase the amount we pay each month of the mortgage. Below we explain what are the hidden costs of the mortgage that you can easily detect in your mortgage contract.


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Hidden mortgage costs: what they are and how to identify them
Taking out a mortgage is one of the great investments we can make in our lives. When Chinese Overseas America Number Data we sign the mortgage contract, it is crucial to look at the conditions under which the loan is and the clauses that the banking entity imposes in the document. These conditions and clauses are what generate an additional charge on the amount to be returned for the debt we have contracted with the bank.

Hidden costs can mean an increase in the amount we ultimately have to pay for our mortgage. These expenses materialize as mortgage interest or with the obligatory contracting of products and services that the bank has.

Insurance and other additional products that generate hidden mortgage costs
It is possible that by contract the bank will ask you to purchase home insurance, mortgage life insurance or payment protection insurance. These types of services are not necessary to be able to agree on the mortgage with the entity. In addition, they will involve a recurring expense over the months, increasing the amount to be paid in the monthly payment.

Also, they imply an increase in the amount we pay for additional products offered by the bank in the mortgage contract. We find revolving cards as products that generate an extra cost in a hidden way to the future mortgage holder and that their acquisition is totally unrelated to the mortgage that the holder takes out.

Commissions and clauses of the mortgage contract
The mortgage contract consists, among other things, of a series of clauses and conditions that must be met in order to obtain the loan. These clauses may be related to income or debts, but these clauses may also indicate percentages of commissions that will make the monthly payments we pay more expensive.

Examples of commissions in a mortgage contract are the opening commission or the commission for modifying the loan or the interest rate that we choose, of which you will be able to know its value if you want to calculate the mortgage payment . We will have to ensure that these do not represent abusive percentages for us.



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Infographic on what the hidden costs of the mortgage are.

Additional expenses generated when taking out a mortgage
In addition to the hidden expenses, which we will have to avoid appearing in our mortgage contract, a series of costs are added that we will pay after the purchase of the property and which are essential to formalize the acquisition of the home before the official organizations and, therefore, Therefore, apply for the mortgage loan.