Reimbursement schedules also affect the ability of the borrower to repay the capital in advance, in whole or in part. This will reduce the burden of the loan in interest. The benefits depend on the chosen depreciation and when you choose this option.

The types of planned obsolescence are:

• Planned obsolescence French: Each installment includes a share capital and share interests in particular shares are rising for the capital and decreasing for the interest. The installment is composed primarily of interests in, and, approaching expiry, the greater the proportion of capital repaid;
• Plan a depreciation rate increasing: the rate of reimbursement are not fixed but the amount increases with each installment. If you expect increases in income in the future, the increasing rate plan can be an opportunity;
• Free amortization plan: payments are made only by the share of interest. The capital may be redeemed freely within predetermined deadlines;
• Plan a depreciation rate fixed and variable length: the rate remains constant while the rate varies by determining the shortening repayment schedule. If you prefer a variable rate but want to maintain the fixed rate, the amortization term variable is an attractive alternative.

The fixed rate stays the same for the duration of the relationship and allows you to precisely define the payment plan. It is the optimal solution if the market rate rises, as it is disadvantageous if the market rate decreases.

The variable rate mortgage

The variable rate does not guarantee the certainty of the amount of its repayment in the medium to long term, offers the advantage of providing for the reimbursement rate that respond to current needs and situations. The floating rate is updated periodically based on the cost of money, so you can earn / bear losses on the basis of its oscillations.

The loan rate mixed

Joint rate, also known as rate structure allows you to postpone the final choice of the rate of at least 24 months, when important choice is difficult to predict the trend of interest rate fluctuations because of marked, or in the event of a change in personal circumstances.

Derivation of one particular variable, allows to limit the risk of future rate increases. The borrower follows the benefits of varying stages of decline in the cost of money, but in case of upward and suffers the disadvantages to a certain limit defined cap.
This loan combines the characteristics of the typical financial product to those of securities of a derivative (option).

The variable rate mortgage a rate constant

With this type of product combines features of fixed-rate with those of the variable rate. By varying the interest rate changes the term of the mortgage, but not the rate (which remains constant). Increases the cost of money results in an extension of the deadline, reducing the rebates.

The creditor is the one who issues the loan, so the receiver is called the debtor. The reimbursement rate through which you add an interest rate that is the proceeds from the lender.

The rates applied to the loan may be fixed or variable rate depending on the type of contract or upon the financial market. The fixed rates are independent of the market for this and have slightly higher rate variables, which are influenced by changes in economic / financial.

Small amounts are not provided for specific terms and now the funds are granted to people who have had seizures or have negative experiences in this regard. For larger amounts are being set some minimum clauses, to which not having to incur heavy fines, and require a valid credit reputation together with a minimum guarantee on the funding of the total.

Main phases which characterize the period of the loan request:

• the application;

• technical expertise;

• the contract in the presence of a notary;

• mortgage registration;

• obtaining the loan.

The main phases which characterize the period of repayment of the loan are as follows:

• payment of only interest for the period of grace that technically, that may precede the actual beginning of the repayment of installments scheduled;

• periodic payment by installments monthly, quarterly or half yearly, technically called the amortization period of the loan;

• after payment of last installment cancel the loan, which must be permitted by the bank, through a document that technically is called a declaration of consent to the cancellation of mortgage.

Each stage has its costs that we need to know before you begin to compare banks with each other.

• Cost of inquiry, which reimburse the costs of steps and application expertise, some banks are asking up to 500 euros, while others heralded figures much lower (even 150) to attract customers in this phase is very important to know how to negotiate between bank and the bank and seek agreements that create discounts for the customer.

• Notaries fees, which depending on the bank and the agreements with the notary. and can vary greatly and not always the bank will know.

Sometimes the customer earns more just paying the notary in accordance with the bank notary in force, which pays small costs of inquiry. The first two costs are to be contracted together.

• Rate actually be paid, which depends in part on the type of interest rate that you pay to the bank. The types of rates are: fixed rate, which remains the same for the entire duration of the loan regardless of what happens in the financial market, and variable rate that rises and falls along the trend of some financial indicators taken as a starting point reference.

• Interest on arrears, the additional cost due to the bank in case of delay in payment of installment.

• Penalty for early termination of the loan, payable to the bank if the customer wishes to conclude the first period of depreciation;

• Cost of cancellation of mortgage, which are normally charged to the customer of the bank.

It also appears important for the customer of the bank proportioning the regular installment of the loan to those who are your chances, looking both to the amount of each installment is how many times in one year he must pay, because he knows that after 2-3 semi-annual installments are not paid, or 9-12 monthly installments, the bank began using the practices and conditions that lead to the lawyer forced sale of the collateral put in, frustrating the efforts above.

In case of difficulties to pay it is useful to talk to the bank because it actually allows short periods of flexibility in payment.