Mortgage loan: which loan to choose?

With the large number of financial institutions and the different types of loans available, you may not know which mortgage to choose. Above all, the ideal is to know your needs. This is given that there are loans that are not suitable for you, whether on terms and benefits. To help you, here are the four main mortgage loans.


Home savings

home loan

It is the first choice of most investors because it has given them an opportunity to build savings for years. Thus, it is more precisely a savings account with a relatively low interest. Depending on the underwriting in the placement, the rate may be even lower. Also called PEL or home savings loan, it represents a group apart compared to the establishments which grant credit.


Fixed rate credits

credit loans

This is the offer that most attracts French people. The strengths of a fixed rate loan is that it is simple, the different parameters of the credit are fixed in advance. So whatever happens in the financial or real estate market, the rate, the repayment period and the amount will not be changed. On the other hand, transparency is guaranteed: the applicant knows very well where he is setting foot. For comparison, interest is higher than that of the variable rate for a mortgage.

Suppose you decide to buy a house and get a mortgage. To call a mortgage broker recommended by your broker, a family member or a friend. Perhaps this is a reputable mortgage bank that you have done business with in the past. You fill out a loan application and receive a letter from preapproval.


Variable rate loans

Variable rate loans

As the name suggests, it is a credit where the rate can go up or down at any time. The variation is a function of several trends: financial market, the euro zone, supply and demand on the market, etc.

The amortization policy applies to this category of loan. With monthly repayments, the monthly payment is fixed at the same time as you have the possibility of creating capital. The monthly repayment is reduced as the years go on. At the end, the saver will have settled all his loan. Loans in fine are more suitable for those interested in investing in rental property.

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