If you have asked yourself that question, it is undoubtedly good news since you are in a situation in which you are considering returning the money loaned by the bank in advance and although that is always good, there are some moments that are better than others.
Remember that it can be amortized in two ways, installment or term. In the first way you will pay less each month and in the second you will pay the same but less months.
A very important aspect when deciding what to do is to understand the amortization system that is applied in mortgages in our country, it is the French method by which the first years of the mortgage, more money is paid in the form of interest than in principal. As time progresses, the interest payment is reduced and the payment corresponding to the loan itself increases. Therefore, a priori, the best time is to pay off as soon as possible.
That is the theory, the sooner you pay off the sooner you take off the interest. This has always been the case until the Euribor reached negative and therefore the accounts change radically since there are some cases that cwith the current Euribor they are the ones who pay interest to the client. In this case, obviously, it is not convenient to amortize and it is better to invest that money even at a very low rate.
Another important factor to take into account is that the amortization usually has commissions and varies greatly from the type of mortgage, in the case of fixed mortgages the maximum amortization commission is one 2% if the advance payment occurs during the first 10 years of the loan, while it is reduced to 1.5% thereafter. Therefore, in this case, if you are in the eighth or ninth year, it probably will not compensate you to amortize.
In the case of variable mortgages, the maximum commission is 0.25% if the amortization occurs in the first three years, and the percentage is reduced to 0.15% if the payment is made in the following two years.
Another aspect to take into account is the tax, if the mortgage is prior to January 1, 2013. It can deduct up to 15% of a maximum amortized of € 9,040. 15% of € 9,040 is € 1,356. This 15% saving is reached by adding two routes: one of them is the 7.5% state tranche and the other by the deduction autonomic that covers the other 7.5%. In this case, it is always worth amortizing but never more than € 9,040, if there is excess, it is better to leave it for subsequent years.
And finally there is the psychological aspect, there are many people who value duty less to the bank, having less debt. That liberation has a price-
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