Mortgage loans: what you must know to hire them
Currently, he lives in a society that has caused the need for contractual relations with banks to cover the most essential aspects of modern life, such as the payment of the wage for work or any perceived social benefits, access to housing or the purchase of commodities such as vehicle or furniture, among others.
This is why almost all citizens of the environment maintains relationships with one or more financial institutions, with which it has contracted various products that will a decisive condition the essential aspects, both his housekeeping as your personal development in which material aspects referred to. An actual knowledge of this subject, is an elevation in the level of demand since it allows the user to choose and compare with criterion between the different offers of the market, discarding those that understand how more harmful to their interests, and awareness of what engages.
Since this guide is to provide the user a degree of knowledge so that it can, from the understanding of this product, adapt the recruitment of financial products to its effective actual needs, without taking on unnecessary costs for its domestic economy and facilitating their possibility of comparison, to optimize the choice within the range that can be found in the market.
The price of money. (TAE)
Before you start to analyze the functioning of a mortgage loan, it is necessary to stop and explain the meaning of this acronym, which is a fundamental aspect to take into consideration in Bank operations offered by financial institutions, being a concept of knowledge required to be able to make a proper comparison between the different products.
TAE, they stands for annual equivalent rate, it is a mandatory data on all ads for mortgages, loans, and deposits. It is the figure which allows you to compare offers from different entities in a more appropriate manner. It takes into account not only the interest (coupon rate), but also commissions, products requiring to hire, the term… Therefore, when comparing between different financial products with homogeneous characteristics (for example, two loans with similar interest and a same time), this economic data, will provide a reference for locating the most advantageous product from an economic point of view.