Banks gradually began to revive the mortgage market at very attractive prices, but these offerings to determine the recruitment of several self-assurance than the price substantially more expensive end of the loan.
One of these conditions is the recruitment of insurance with single premium payment in addition to the total amount of the mortgage. It may be home insurance, life and unemployment, while more traditional forms are the last two.
Normally, you pay the life insurance every year, but in some states force you to pay it all at once, which added to the amount of the mortgage are paying more fees and more interest if you pay for it separately. That is, by adding, for example, pay 5,000 euros a share which is increased by the percentage which represents that amount in credit and at the same time, more amount plus interest payments. This does not happen if paid separately.
Mortgage advisers, HelpMyCash, analyzed two cases that were originally published in finanzas.com:
Mortgage With A-and the interest rate of Euribor plus 0.29%, a very competitive. But to get the mortgage must accept the terms. This is the recruitment of a life insurance premium of 4.940% of the total capital of the mortgage.
That is, for a € 150,000 mortgage, the amount of the insurance amount to 7350 euros. Taking a period of 30 years, your payment would be 517.68 euros, but if we add the amount of insurance would be at 543.25 euros. The fee increases more than 25 euros per month or over 300 per year, which is more than double the life insurance market.
Banco Popular also follows the same practice. To hire the Top Mortgage Loan 0.30% or Premium Banco Popular-e. Here the difference is that what you save in interest is paid on life insurance. Thus, 0.30% Top Mortgage offers a spread of 0.30% but not obliged to buy life insurance with single premium of 9.669%. For its part, Premium Mortgage has an interest rate of Euribor plus 0.39% paid monthly.
In my case, I offered a BBVA mortgage life insurance premium which involved only 5,000 euros more for the loan, but if you canceled before I returned the money proportional to the life of the loan and had not say consumed.
The ideal is to go to another bank and negotiate. Finally I signed the mortgage with a savings that I offered to pay life insurance annually and further divided into two semi-annual payments, which struck me as reasonable. Life insurance is also reasonable to see it because if something happens to me, my heirs are not “caught” by my debt.
