Myths about mortgage loans abound. Most of the time they try to be persuasive so that they do not resort to them in the purchase of housing. They usually come from people in financial training or knowledge on the subject.
The most recurring myths about mortgage loans
Perhaps the most entrenched is that acquiring a house through a mortgage loan is a lifetime commitment.
There are credits of 10 to 30 years, but the credits to 15 years are suggested since at 20, the amount of the monthly payment is not so much lower but the interests do grow a lot.
Another popular belief is that only interest is paid. That is categorically false. On a monthly basis, part of the payment goes to capital and another to interest.
Account that conditions change from one bank to another
It must be taken into account that conditions change from one bank to another. In most credits, you can pay in advance without prepayment penalties. There is no penalty for it.
Another very common myth is that interest rates are very high. Although each bank has the power to set its own rates, it should be considered a market with a lot of competition.
There are several private and public credit bidders that facilitate financing. That is what they do and their profits, their usefulness. Institutions should not move far from the economic conditions prevailing in the country. There are other banks that could attract more customers with lower credit requirements.
This unjustified aversion only reflects ignorance
Finally, we must consider that certain people have a kind of instinctive phobia towards debts. This unjustified aversion only reflects ignorance of the real value of money and its link with the passage of time.
In general, the Mexican does not like risk or the incorporation of debt in their finances. His excessive caution often makes him lose good business opportunities.