Purchasing a home is one of the most important decisions in anyone's financial life. Invest in your new home safely. A mortgage can be a great tool to achieve this, but before taking that step, it's essential to consider several aspects that will impact your finances in the short, medium, and long term.
1. Know your payment capacity
Before going to a bank or financial institution, consider how much you can afford without compromising your financial stability. It's recommended that your monthly mortgage payment not exceed 30% of your net monthly income.
2. Compare interest rates and the Total Annual Cost (CAT)
Simply choosing the lowest rate isn't enough. The APR includes fees, insurance, and other associated costs, making it the best indicator for comparing credit options across financial institutions.
3. Choose the right deadline
In Mexico, mortgage loans are typically offered for 10, 15, 20, and even 30-year terms. Longer terms mean lower monthly payments, but higher total interest payments. Evaluate which option best suits your life stage and job stability.
4. Save for the down payment
Most banks require between 101 and 201 percent of the property's value as a down payment. Having ample savings ahead of time not only improves your chances of approval, it also reduces the loan amount and the total interest you'll pay.
5. Consider the included insurance
Every mortgage loan includes mandatory insurance policies that protect both the buyer and the financial institution. It's important to know how much they cost, what they cover, and, if possible, opt for third-party insurers with better terms.
Taking out a mortgage will define your finances for many years to come, and at Proyectos 253 we can help you make the best decision. Contact us for financial advice so you can make an informed and successful investment.
