If we want to change the mortgage bank to improve conditions for the first cost it is the commission of subrogation that we pay to our current bank. This committee is regulated by law and cannot exceed 0.50% if the mortgage has up to 5 years of life and 0.25% if mortgage leads signed 6 or more years. According to the bank and the conditions of the current mortgage you can get a 0% on this committee.

Other expenses are about signing with the new bank. The first cost is the Notarial, which will be around $600 (depending on the loan amount). Another expense is the home appraisal that will 300-400 euros, to which the costs of agency (about $300) and registration in the Land Registry (about 100 euros) are added. Total costs are about $1,300, but it depends on the amount of the mortgage.

If we get that the act at the notary is processed, as indicated by the Law as a document without amount of the price it is $30.05 and the cost of registration is only $13.36. If in addition, we negotiated a commission of 0% in mortgage subrogation change can be very cheap.

What should I?

Obviously, there is no better or worse option as they are different alternatives. In the first instance, we were interested in reaching an agreement with the bank to improve conditions, but if this is not possible, it is reasonable to use surrogacy and change our mortgage bank. Anyway, we should not forget that both the subrogation and the novation may incur costs if our entity applies some sort of commission if either of these two options is executed.

In any case, the current mortgage and real estate situation in US, where low interest rates and dynamics of the property market is a fact, favors debtors, who can negotiate your mortgage in a much more attractive terms, not just as the interest rate, but also on the repayment period and the commissions that an entity applies to us.