Today buying a house with a mortgage may be a good idea, even more beneficial than what the underlying conditions might be. Is it worth buying a house such as a pandan indah condominium with a mortgage in 2020? The answer is in the reflections of the experts opinion: never as in this period have fixed mortgage rates been cheaper, even more convenient than variable ones.
What does this mean? Those who know the real estate market know well that there is a substantial difference between fixed and variable rates, but not all of this is always evident and clear. Is it worth buying a house such as a Pandan Indah condo with a mortgage? And is it a condition that affects 2020, as a reflection of the pandemic linked to COVID-19? Let’s find out together. In case of Real Estate pandan indah such purchases will offer great returns.
What is a mortgage: definition?
Before understanding if it is convenient it is right to reflect. What is it about? What is a mortgage? It is a contract between two subjects (lender and borrower) to give a sum of money that must be repaid over time with a series of installments divided over time. The loan is regulated by Art. 1813 of the Civil Code:
The loan is the contract by which one party delivers to the other a certain amount of money or other fungible things and the other undertakes to return as many things of the same kind and quality. In simple terms, the mortgage is used by people who want to buy a house to acquire a sum of money to have the necessary liquidity to close the contract. Then, over the years, you can pay back the total with interest that can be fixed or variable. What does this mean?
Fixed or Variable Rate Mortgages
This is one of the substantial differences: there is a fixed and variable rate mortgage, what does this mean? In the first case we have a condition in which the interests are blocked over time and there are no fluctuations based on the market trend. As a result, they tend to be higher.
Variable rates, on the other hand, can be modified and are influenced by external conditions. It can be interesting to work on this front to save on the fee to be paid to the bank but there may be fluctuations that prevent the mortgage from being convenient.
What is the best solution?
Fixed rates are certainly the most widespread in Italy, even more so today that there are advantageous relationships for those who decide to buy a house. But is it worth buying a house with a mortgage regardless of the type of rate? For more articles like this one, click here.