Home Loan: What You Need To Know?

A home loan is a loan you take out to buy, build, or refinance your own home. You can get a home loan from a variety of lenders, including banks, credit unions, and online lenders. 

Before you apply for a home loan in Paraguay (which is also known as prestamos hipotecarios paraguay in Spanish language), it's important to understand the basics of the loan process. Here are some key points to keep in mind:

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  • The amount you can borrow is based on your credit score and how much money you want to borrow.

  • You need to have enough money saved up for the down payment and closing costs.

  • Interest rates on a home loan vary considerably from lender to lender.

  • You may be required to maintain a certain mortgage balance and/or monthly payments for a set period of time after you obtain your home loan.

  • If you're unable to make your monthly mortgage payments, your lender may foreclose on your home.

  • Compare interest rates and fees between different lenders. Compare rates and fees for fixed-rate loans, adjustable-rate loans, mortgages with and without PMI, and mortgages with different loan terms. 

  • Stay current on your mortgage payments while refinancing. Your new mortgage may have a shorter term than your current one, which could result in higher monthly payments initially. Make sure you have an emergency fund in case these higher payments cause financial hardship.