TIN, TAE, IAJD, IRPH… many concepts. And the fact is that nowadays, in order to move around the mortgage world with ease, it is not a bad idea to have a dictionary like the one offered by Hipotecas.com on its website . However, in this dance of acronyms, there is one that can help you save a lot of money and clarify things when it comes to finding your ideal mortgage: the FIPER .
At Hipotecas.com we explain what FIPER is, what it is used for and what aspects you should consider when comparing loans for home purchase.
What is and what is not FIPER?
The FIPER consists of a document that contains the individual characteristics and conditions of the financing that the credit institution grants you for the purchase of a property.
Unlike the FIPRE (Pre-contractual Information Sheet), which shows the generic data of a typical mortgage offered by the bank - as an informative brochure on the entity's product offering - the FIPER does show the personalized conditions , after the corresponding department has analyzed all the documentation that they have requested from you to prepare your financial profile.
To obtain it, you only have to request it directly - and at no cost - from the credit institution in question, since by virtue of Order EHA/2899/2011 of October 28 on transparency and protection of banking services customers , the automatic delivery of this document is not mandatory, although Hipotecas.com does voluntarily provide you with the FIPER, with all its annexes , with sufficient advance notice so that you can read it calmly.
However, the FIPER is not binding, unless specifically indicated by the financial institution in the document . What does this mean? That the stipulated conditions can be negotiated and subsequently changed, a circumstance that must be taken into account when definitively signing the mortgage.
What is this document for?
Despite its initially indicative nature, the FIPER is a tool that will help you choose the most convenient mortgage for your interests and personal situation . Why?
With this document, you can compare the different types of mortgages offered by the credit institution , contrasting which is the most advantageous product on the market for you.
Furthermore, by collecting the loan's features in detail, you will be able to assess the implications that the future mortgage contract will entail for you and, thus, be able to make an informed decision before signing the loan.
What points of the FIPER should you pay attention to?
To get the most out of the information contained in the FIPER, it is important that you pay special attention to the following aspects:
- The interest rate . Interest is the main factor that influences the cost of a mortgage and is therefore the first parameter that you should compare, checking the reference rate, its substitute, the differential percentage, whether it has any type of limitation or modification throughout the life of the loan, etc.
- Commissions . Another relevant point of the FIPER is the possible commissions established in the document: what commissions exist, partial amortization, novation, cancellation... and in what amount.
As with any reform, it is advisable to request at least three or four different estimates. By studying these three FIPER data and comparing them with the different types of mortgages offered by the credit institution, you will be able to find the mortgage that best suits you .