First time home loans: do you know how to choose the best mortgage?

What is the first home loan?

When is it worth asking? What are the most convenient forms? 

home loan
The purchase of the first home is considered an act of great social importance, such that it enjoys incentives at the regulatory level, aimed at limiting the costs of the financing necessary to purchase the property or allowing families (especially, young couples) to draw on loans even in the absence of all the guarantees that would normally be required by the banks or lending financial institutions.

The classic loan required to buy the first home is the mortgage

The classic loan required to buy the first home is the mortgage

Which consists in the provision by a bank (but today also the financial companies are active in the field) of liquidity necessary for the purchase of a property, which turns out to be the first owned by the purchasing family unit, covering no more than 80% of the purchase price of the house and behind the presentation of some guarantees.

The creditor, in fact, never finances 100% of the sale price, reserving himself a guarantee margin of at least 20%, such as to ensure him to cushion or cancel the losses, should problems arise with the repayment.

Another feature of the loan or mortgage for the first home is that the building object of the purchase is also the one on which a mortgage registration will be charged, ie a real guarantee, which will allow the bank or financial company to execute the asset, if the full repayment of its credit does not take place, to the satisfaction of the sum claimed.

It is clear that income guarantees are required from the debtor, mainly, the enjoyment of an income from work, to be shown by pay slip. In the absence of an ongoing employment relationship or in the presence of a non-stable job or that does not guarantee a certain minimum income over time, it would be very difficult to see the loan recognized.
The loan can be contracted

In these cases, either at a variable rate or at a fixed rate , depending on the choice of the contractor.
In the first case, the rate varies, as the Euribor changes to three months, therefore, the mortgage payment will not be fixed. In the case of a fixed rate, the installment is constant, because the rate remains the same for the entire duration of the repayment.

There are also other mixed solutions, such as the mortgage with a cap , which consists in enjoying a variable rate, but whose increase is limited to a maximum pre-established rate; just as there are variable rate mortgages, whose rate remains constant, shortening or lengthening the repayment period, depending on changes in market rates.

Payday loan: how to get it and how to repay

The payday loan is a short-term loan which is repaid when the monthly salary is received . This is a very popular loan formula in the Anglo-Saxon world, in countries like Great Britain and the United States, where they are called payday loans . This type of financing is designed specifically for the small daily needs that you face in everyday life, when you have difficulty getting to the end of the month: pay a bill, make an unexpected purchase, repair the car and many other similar situations. If you don’t have money in the bank at that time, how do you do it?

Payday loan can be a solution

Payday loan

The loan, depending on its characteristics, can fall into the category of small loans or very fast loans (click here to find out how to get fast loans). The payday loan is in fact a small loan, rarely over 1,000 euros, which can be obtained very quickly , that is within a few days. These characteristics respond precisely to the need for common expenses in a very limited period. But even if the costs are not so large, if the necessary liquidity is not available, they can become a problem.

This type of financing is not provided by banks, but much more often by financial companies , also active online, specialized in this sector. The e-banking activities make these loans even more flexible. The cost that must be faced for this immediate availability of liquidity, however, is very high: usually, the interest rate applied on these loans is very high, precisely because the financial offers a certain amount of money in a very short time and often with lower guarantees. compared to a traditional personal loan.

The other peculiarity of the payday loan consists precisely of the repayment method

payday loan,money

this happens when the applicant receives the credit of the monthly salary following the obtaining of the loan , the payday, in fact. For this reason, these loans are often requested at most one or two weeks before the salary is received. In fact, this financing can be considered as a sort of advance on the salary, which is repaid at the end of the month.

Multi-year loans: difference between direct and guaranteed

You will certainly have heard of the INPDAP long-term loans, but you can’t find any recent news: a problem common to all those who have been interested in these funds in recent years for public employees and retired former employees of the State. This difficulty arises from the fact that the INPDAP, the institute that managed social security and credit services for public employees and pensioners, was absorbed by the INPS, the National Social Security Institute, which today provides this kind of funding. Former INPDAP long-term loans are therefore a form of credit granted by the INPS, which provides loans to be spread over several years.

Today there are two forms of multi-year INPS loans , as envisaged in the past also by the INPDAP regulation. The first category is the direct management multi-year loans , addressed to all those enrolled in the Unit for credit and social services, also known as the Credit Fund. Furthermore, those who request it must have at least 4 years of seniority for retirement and 4 years of contributions to the Fund, as well as a permanent contract.

The loan lasts 5 years or 10 years and works with the mechanism of the assignment of the fifth: the reimbursement cannot exceed a fifth of salary or monthly pension and is made by debiting the current account. The nominal interest rate is equal to 3.5% per annum, to which must be added an administration fee of 0.5% and a contribution to the risk provision.

Then there are the guaranteed multi-year loans

loans

Which is expressly addressed to those who benefited from the former INPDAP management: one could say that they are still long-term INPDAP loans. These loans, as per the INPDAP regulation, are provided by financial companies affiliated with the INPS: once again, those registered with the Unit Management Credit Fund can request them and the reimbursement takes place through the mechanism of the salary assignment.

Unlike direct loans, guaranteed long-term loans require the bank to set a variable rate

Unlike direct loans, guaranteed long-term loans require the bank to set a variable rate

The contributions to be paid to INPS are also increasing: in addition to administration costs of 0.5%, a compensatory premium for 1.5% default risk for 5-year loans and the 3% or for those 10 years. The INPDAP long-term loans therefore differ from the small INPDAP loan for the amount obtainable on loan and the longest repayment period.