Mortgage credit costs
Step 5
Like any other product you buy, a mortgage loan also has costs. Below are some components that you need to consider:
The interest rate
It is usually the main component and can be fixed or variable. You need to be careful not to compare a fixed rate credit with a variable rate credit (it’s like comparing apples to peaches). In many cases, the offer can be misleading. Check whether the interest rate presented is fixed or variable for the entire period of the loan, or it is just an offer that is valid over a short period of time and which then can significantly increase, making the credit more expensive.
Be very careful about the time with the interest rate is fixed and find out how your monthly rates will change when the interest becomes variable. When interest is variable, it is important to know the items to which it relates. Interest may change depending on an index that does not depend on the creditor’s decision (ROBOR / Euribor / Libor / etc), but also on other factors related to the creditor’s strategy.
At Verida Credit we offer you a smart mortgage loan: 30 years Same Rate , in dollars, with a fixed interest rate over the entire period of the loan and is the only credit in Romania with the fixed rate in USD (US dollars) for the whole period .
At Verida Credit you always pay the same rate or even a lower rate. If you pay your installments on time and your interest rate can go down by up to 1.4% in the first 2 years of your credit. So you have total control over your money, you can even make savings.
Monthly commission
Check if there is a monthly fee – this is an additional cost you will pay each month, up to 0.5% per month of your balance, which means an additional cost of more than 6% a year over the interest rate! These monthly fees may bear different names, such as: administration fee, etc. It is important to understand what each name represents.
Example of mortgage credit calculation:
Through the 30 Same Rate Credit Loan we assure you, according to the credit agreement, that we will never change the monthly payment.
For example:
For a $ 45,000 VERIDA credit over a 30-year period with an interest rate of 7,90% fixed for 30 years, the monthly rate is $ 339, equivalent to $ 1,342. Verida’s commissions for most credits are the $ 500 analytical fee, which is retained once in the credit at the time the credit is granted, and the monthly administration fee of 0.03% applicable to the credit balance. Annual effective interest rate: 8.70%. Total amount payable in 360 rates: 121,918 USD. Verida Credit specializes in providing long-term real estate loans with fixed interest rates throughout the credit in US dollars. In this case, the only VERIDA variable is the USD / RON exchange rate. If the USD / RON exchange rate will increase by 20%, the original rate will increase from $ 1,342 ($ 338.39 * $ 3,965 / USD) to $ 1,610 ($ 338.39 * $ 4.758 / USD). Consumer protection legislation, GEO 52/2016, entitles consumers to request credit conversion in the currency in which they earn most of their income or in the country of residence. The credit will be repaid in the currency in which it was awarded, namely US Dollars.
