How to transfer the mortgage from one bank to another
It may be that at some point in the life of our mortgage, we consider the possibility of changing it to another bank . Some of the reasons that lead us to this decision could be that we find a bank that offers us better conditions to maintain the mortgage, or we want to expand it and it suits us better to do so and transfer it in its entirety to a new bank. Next in .com we will help you to understand how to transfer the mortgage from one bank to another through subrogation, the main method to carry out this type of operations.
What is subrogation of the mortgage?
We usually talk about mortgage subrogation when we want to transfer our mortgage from one bank to another. As is logical, the cancellation of the mortgage loan is implicit in the first bank that originally had granted it to us. In general, through subrogation, we intend to obtain an improvement in the terms of our mortgage. It can be a very interesting option for many families, due to the great variations that the interest rate has experienced in recent times.
What should we keep in mind when subrogating our mortgage?
There are few factors that we must consider when subrogate our mortgage, to see if it really is worth it or not.
- The interest rate that we pay in our original bank and the one that we would pay when changing the mortgage. This is one of the main points to take into account, since obviously we are interested in paying an interest that is as low as possible, but in principle it would not be worth making the subrogation.
- The amount of the installments and the time pending payment. We can accompany the subrogation of an amortization of part of the debt.
- The expenses associated with the subrogation of the mortgage. They are usually less than the opening of a new mortgage, but it is not exempt from them.
- Subrogation is only allowed in the case that we have contracted a mortgage loan, not a mortgage loan. We can see the differences between both in our article what are the differences between a loan and a credit.
- The amount of the commission for canceling the first mortgage.
How much will I save when transferring my mortgage to another bank?
This amount of money can be very variable, it may even be that we do not save anything, according to the characteristics of our mortgage and according to market conditions at all times.
To get an idea, we must take into account the points mentioned above. In any case, we can calculate it roughly without moving from home:
- We can find in various internet sites calculators of what we leverage to save by transferring our mortgage to another bank, if we know the details of our mortgage (interest, monthly fee and time to pay) and those offered by other banks.
- Also in the various websites of banks can find the conditions that we would offer them to transfer our mortgage.
- Our original bank will be able to offer us a counteroffer that allows us to save more money, in order not to lose customers.