The question of the cost of a mortgage always arises when we start our journey to a dream apartment or house. Experts estimate that, on average, every second real estate transaction is concluded with a bank loan, so you can safely say that if you are thinking about buying your own “M”, there is a high probability that you will use external funds.

You are not alone – according to data from 2019, a loan for an apartment or house repays over 4 million Poles. But, as you can guess, the loan is uneven: we have it for different periods, for different amounts and for different properties, using different offers from different banks.

## Therefore, to estimate the cost of a mortgage

We need to take into account several objective factors on the basis of which it will be easier for us to assess whether a given product is beneficial and attractive for us, but not necessarily.

In this article, we will look at the world of mortgage products, which are currently undergoing a boom due to the real estate boom. If you are preparing to buy a house or apartment and want to be able to forecast the total cost of the mortgage , then read on!

## The cost of the mortgage

A mortgage is usually a liability that we incur for many years – 20, 25, 30 and even 35 years. Therefore, nobody needs to be convinced that one should approach him wisely, analyzing many variables and choosing the best option available to us. One of the first issues we pay attention to is the cost of credit , of course.

And here the matter slowly begins to get complicated, because several (and sometimes even a dozen) different factors come into play that can additionally affect each other. Let’s start by looking at the ones that are most important to us.

## Credit amount

So the amount that the bank will lend you. Watch out! It is rarely the amount that you will actually spend on buying a flat, house or plot for construction. Banks usually also credit their own commission for granting it. In practice, this means that you do not have to physically pay the bank a commission amount – it is added to the total loan amount and is also lent to you by the bank. Such credited fees also include low own contribution insurance, which, however, does not apply to all borrowers.

### Interest rate

The interest rate is in fact the most important factor that affects the cost of the loan . It consists of two variables:

- interest rate, i.e. variable, which is neither influenced by the bank nor ourselves; not negotiable. The interest rate is set by the Central Bank and is professionally called WIBOR. If it increases, so does our loan installment, if it decreases – our installment also decreases.
- the margin, which, unlike the interest rate, is constant and does not change during the entire loan period. The amount of the mortgage loan margin depends on the bank itself and its policy, and is affected by issues such as the currency of the loan we draw, the amount of commission and own contribution, as well as scoring.

What should be remembered in the context of mortgage interest is the fact that while interest rates are not negotiable, the margin is yes. When comparing the offers of individual banks, it is worth paying attention to the amount of the margin, the possibility of its reduction and negotiation.