{"id":33910,"date":"2023-01-31T12:05:58","date_gmt":"2023-01-31T11:05:58","guid":{"rendered":"https:\/\/www.cbleon-abogados.com\/how-does-a-mortgage-work-elements-to-take-into-account\/"},"modified":"2023-01-31T12:05:59","modified_gmt":"2023-01-31T11:05:59","slug":"how-does-a-mortgage-work-elements-to-take-into-account","status":"publish","type":"post","link":"https:\/\/cbleon-abogados.com\/en\/how-does-a-mortgage-work-elements-to-take-into-account\/","title":{"rendered":"How does a mortgage work: Elements to take into account?"},"content":{"rendered":"<p><span style=\"color: #000000;\"><strong>Have you ever wondered how a mortgage works?<\/strong>  Acquiring a mortgage loan is one of the most popular ways of acquiring a home in Spain and much of Europe. Knowing its main elements will help you understand how it works and here we are going to show them to you.<\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>Mortgages<\/strong> are one of the most widely known and used financial products in the world. This is a long-term loan granted to an individual to purchase a property, usually a home. The borrower must repay this loan with interest over a defined period of time.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Tabla de Contenidos<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cbleon-abogados.com\/en\/how-does-a-mortgage-work-elements-to-take-into-account\/#How_a_mortgage_works_Key_elements\" >How a mortgage works. Key elements<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cbleon-abogados.com\/en\/how-does-a-mortgage-work-elements-to-take-into-account\/#1_The_capital\" >1. The capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cbleon-abogados.com\/en\/how-does-a-mortgage-work-elements-to-take-into-account\/#2_The_interest_rate\" >2. The interest rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/cbleon-abogados.com\/en\/how-does-a-mortgage-work-elements-to-take-into-account\/#3_The_term_of_the_loan\" >3. The term of the loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/cbleon-abogados.com\/en\/how-does-a-mortgage-work-elements-to-take-into-account\/#4_Qualification_requirements\" >4. Qualification requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/cbleon-abogados.com\/en\/how-does-a-mortgage-work-elements-to-take-into-account\/#5_Additional_Costs\" >5. Additional Costs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/cbleon-abogados.com\/en\/how-does-a-mortgage-work-elements-to-take-into-account\/#Suggestions_for_acquiring_a_mortgage\" >Suggestions for acquiring a mortgage<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_a_mortgage_works_Key_elements\"><\/span><span style=\"color: #000000;\"><strong>How a mortgage works. Key elements<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong><span style=\"color: #000000;\">To better understand how a mortgage works, it is important to know the main elements that make it up. These elements include principal, interest rate, loan term, qualification requirements and additional costs.<\/span><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_The_capital\"><\/span><span style=\"color: #000000;\"><strong>1. The capital<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong><span style=\"color: #000000;\">The principal is simply the amount of money lent by the bank to the borrower. Usually this amount of money represents 80% of the value of the house, although there are loans of this type that can cover 100% of this value.<\/span><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_The_interest_rate\"><\/span><strong><span style=\"color: #000000;\">2. The interest rate<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000000;\">The interest rate is one of the most important elements when applying for a mortgage. Refers to the way in which the interest generated by the loan is paid to the bank. The interest rate directly influences the amount of money the borrower must pay to the bank each month.<\/span><\/p>\n<ul>\n<li><strong><span style=\"color: #000000;\">The interest rate of a mortgage can be fixed, variable or mixed. It is determined based on several factors, such as the term of the loan, the borrower&#8217;s credit history, among others.<\/span><\/strong><\/li>\n<li><strong><span style=\"color: #000000;\">Fixed-rate loans. They have a fixed interest rate for the life of the loan, so the monthly payment is the same for the life of the loan.<\/span><\/strong><\/li>\n<li><strong><span style=\"color: #000000;\">Variable rate loans. They have an interest rate that varies over time, so the monthly payment will fluctuate according to this variation. In Spain, the Euribor is used as a reference.<\/span><\/strong><\/li>\n<li><strong><span style=\"color: #000000;\">Mixed-rate loans. They have a combination of the above two rates. Generally, the bank maintains a fixed rate for a defined period of time and then the remainder is calculated at a variable rate.<\/span><\/strong><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_The_term_of_the_loan\"><\/span><strong><span style=\"color: #000000;\">3. The term of the loan<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-33905 size-full\" src=\"https:\/\/www.cblspanishlawyers.com\/wp-content\/uploads\/2023\/01\/hipoteca.jpg\" alt=\"mortgage  \" width=\"2000\" height=\"1333\" srcset=\"https:\/\/cbleon-abogados.com\/wp-content\/uploads\/2023\/01\/hipoteca.jpg 2000w, https:\/\/cbleon-abogados.com\/wp-content\/uploads\/2023\/01\/hipoteca-300x200.jpg 300w, https:\/\/cbleon-abogados.com\/wp-content\/uploads\/2023\/01\/hipoteca-1024x682.jpg 1024w, https:\/\/cbleon-abogados.com\/wp-content\/uploads\/2023\/01\/hipoteca-768x512.jpg 768w, https:\/\/cbleon-abogados.com\/wp-content\/uploads\/2023\/01\/hipoteca-1536x1024.jpg 1536w, https:\/\/cbleon-abogados.com\/wp-content\/uploads\/2023\/01\/hipoteca-370x247.jpg 370w, https:\/\/cbleon-abogados.com\/wp-content\/uploads\/2023\/01\/hipoteca-760x507.jpg 760w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><br \/>\n<span style=\"color: #000000;\">The term of the loan is another element to consider. This determines the time the borrower has to repay the money along with interest. Mortgage terms can vary from a few years to 30 years. The term of the loan is also known as the &#8220;Amortization Period&#8221;.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Qualification_requirements\"><\/span><strong><span style=\"color: #000000;\">4. Qualification requirements<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000000;\">Qualification requirements are another important part to consider when you want to know how a mortgage works. These requirements vary from bank to bank, but generally include a good credit history,  <strong>a good financial situation and the ability to demonstrate a stable source of income. If these requirements are not met, you do not qualify for the loan.<\/strong><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Additional_Costs\"><\/span><strong><span style=\"color: #000000;\">5. Additional Costs<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000000;\">In addition, borrowers should be aware of the <a href=\"https:\/\/clientebancario.bde.es\/pcb\/es\/blog\/que-gastos-te-toca-pagar-cuando-contratas-una-hipoteca-.html\" target=\"_blank\" rel=\"noopener\">additional costs<\/a> that may be involved in applying for a mortgage. These costs may include closing costs, taxes, insurance, among other charges. These additional costs will be described at the time of the contract, so you should be aware of them.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Suggestions_for_acquiring_a_mortgage\"><\/span><strong><span style=\"color: #000000;\">Suggestions for acquiring a mortgage<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000000;\">One of the best recommendations we can offer you as <a href=\"https:\/\/www.cbleon-abogados.com\/en\/advice-on-real-estate-law-and-construction\/\">real estate<\/a> lawyers is that, in order to acquire a mortgage, you should evaluate well if you can afford the monthly payments. <strong>The loan should not negatively affect your ability to save.<\/strong><\/span><br \/>\n<strong><span style=\"color: #000000;\">It is also important that, before taking out a mortgage loan, you compare several offers to make sure you get the best one. Knowing how a mortgage works will help you make an informed decision.<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Have you ever wondered how a mortgage works? Acquiring a mortgage loan is one of the most popular ways of acquiring a home in Spain and much of Europe. Knowing its main elements will help you understand how it works and here we are going to show them to you. Mortgages are one of the most widely known and used&hellip;<\/p>\n","protected":false},"author":5,"featured_media":33904,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_joinchat":[],"footnotes":""},"categories":[170],"tags":[],"class_list":["post-33910","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/cbleon-abogados.com\/en\/wp-json\/wp\/v2\/posts\/33910","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cbleon-abogados.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cbleon-abogados.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cbleon-abogados.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cbleon-abogados.com\/en\/wp-json\/wp\/v2\/comments?post=33910"}],"version-history":[{"count":0,"href":"https:\/\/cbleon-abogados.com\/en\/wp-json\/wp\/v2\/posts\/33910\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cbleon-abogados.com\/en\/wp-json\/wp\/v2\/media\/33904"}],"wp:attachment":[{"href":"https:\/\/cbleon-abogados.com\/en\/wp-json\/wp\/v2\/media?parent=33910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cbleon-abogados.com\/en\/wp-json\/wp\/v2\/categories?post=33910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cbleon-abogados.com\/en\/wp-json\/wp\/v2\/tags?post=33910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}