How do the TIN and APR affect mortgage payments?

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You decide to apply for a mortgage , you start to consider options and you keep coming across two acronyms: TIN and APR. You also realize that the second is always higher than the first. Because? What do each one mean? How do the TIN and APR affect mortgage payments? In two minutes you will have all the answers.

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Definitions: what are the TIN and APR of a mortgage?
With these names, the TIN and the TAE seem to refer to a comic duet, but their effects are very serious. Let's start with the easiest one. The TIN, or Nominal Interest Rate , is what you simply call interest. When we talk, for example, about a Japan phone-number list fixed interest at 3.15%, we are referring to the TIN. That is, at the price at which the bank lends you the money.

However, the overall cost of the mortgage is not reduced to the interest rate. Commissions, transaction expenses or the effects of the amortization period must be added. The APR, or Annual Equivalent Rate , is what takes into account, along with the TIN, all these variables. Banks are obliged to make it known in all their promotions.  

In this way, the APR is the percentage you should really look at, as it gives you a more complete idea of ​​the cost of the mortgage. Now you can understand why, when comparing mortgages , the APR is always higher than the TIN.  



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The effects of the TIN and the APR on your mortgage payments
You can already tell yourself how the TIN and the APR affect your mortgage payments. The relationship is very direct: the higher both values ​​are, the higher the monthly payments will be .

Try using Housfy's mortgage plus expenses simulator . Set up a fixed mortgage in Barcelona for 100,000 euros, with 15,000 in savings contributed and a repayment period of 30 years. With a TIN of 2.75%, the fees would be 402 euros; with one of 3.75%, of 456.   

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How to get a favorable TIN and APR
There is no other option here than negotiation. The ideal, of course, is that your profile is especially attractive to the bank, since this will increase your chances of getting a low TIN and APR . These would be the main features:

Good income.
Debt capacity.
Impeccable credit history.
Employment stability.
Logically, without meeting all these requirements it is also possible to access a good APR by compensating for your weaknesses with your strengths . Another option to improve the conditions of your mortgage is to contract one of the products that the bank offers you (insurance, payroll direct debit, savings account...).