The good economic forecasts for this year in Spain have made consumption increase again. The two sectors that have benefited from most are the technology sector and the sector reforms, according to a study by AFI (International Financial Analysts).
During 2015 in Spain, according to a Linkhabit survey, 75% of home renovations had an investment of less than $ 6,000. Although this is a great improvement over the 2014 date, where the average investment ranged between $ 500 and $ 2,000, the vast majority of the problems in the renovations are related to financing. According to the latest “Houzz and home” survey, 15% of the people who renovated their homes needed to request financing and 13% would have liked to carry out major renovations if their economic situation had allowed it.
If you are thinking about renovating your home, the financial comparator WealthCash teaches you the most important factors when choosing between different personal loan offers and getting the best financing at the lowest price. Take note!
Keys to choose from the best loans to reform your home
When looking for financing, you can be overwhelmed by the large number of offers that are currently on the market, and that is that each loan has particular characteristics and conditions that make comparing between different proposals not so simple. These are the most influential factors that you should consider to get the cheapest loans:
It is the characteristic on which everyone is fixed. The Nominal Interest Rate (TIN) is the one that indicates the price of the loan, but it is not the only percentage that you should take into account, since the TIN does not include the cost of the commissions that the credit may have. The Annual Equivalent Rate (APR) is the percentage that will indicate what you will pay in total for the loan, as it will include all costs. Thus, the 0% TIN credit can have an APR of 9% for the different commissions that must be assumed.
They are the products you must hire to access the loan. Some requirements, such as opening a checking account or direct payroll and some receipt, do not usually have extra costs. However, other links such as hiring insurance or using a credit card with a minimum would entail additional expenses.
Several entities offer discounts on their interests if you hire related products. In this case you must calculate which of the options would be cheaper: pay more interest without hiring other products or vice versa.
Loan repayment term
It is a factor that many people overlook, but the truth is that repayment term of personal loans plays a very important role in the price of financing. The longer the term, the more interest you will pay. That is why it is convenient to choose higher monthly installments, always within your economic possibilities, and shorten the repayment term.
For example, if you request $ 5,000 at 7% and plan to return it in 18 months, you will pay the total of $ 5,281. However, if you request $ 5,000 at 7% and reimburse it in 30 months, you will pay a total of $ 5,464.
Taking these three factors into account, you will see how you can get the cheapest financing in the market easily. In any case, it is essential that before hiring a loan you carry out an exhaustive analysis of the budget you need for the reform, the capital that you can contribute and the amount of financing you need.