If you are considering extending the mortgage on your home to, for example, buy a second home on the Costa Blanca [ https://www.esphouses.es/comprar-vivienda-en-la-costa-blanca/ ] , you should know that you can request these modifications: Extend the capital: requesting more money means paying more each month if you do not also request to extend the term. You must take into account that, when requesting an increase of the capital of the mortgage, the monthly quota of the same one will increase, and you will have to face the principal debt plus the new amount requested with the extension. Extend the term: by requesting more years to repay the loan, you will reduce the monthly payments. This option is only recommended if your family's economic situation is very unfavorable and it is very difficult for you to pay the loan installments on time. Extend the capital and the term: when you request more money and more time to repay the loan, you get more capital without increasing the monthly payment in exchange for paying the loan installments for a longer period of time. Your financial institution must decide whether the operation is viable or not. To do so, it will evaluate, among other factors, the time you have been paying the loan, your risk level and your age, and those of the other borrowers on the mortgage. If they consider that the operation is viable, they will also modify the conditions of the loan: for example, modifying the interest rate of the mortgage. Also, you may be asked to provide a guarantor or guarantor for the mortgage. What are the advantages of extending the mortgage? - It is simpler than doing a mortgage subrogation, which is to take the mortgage loan to another financial entity. - It is cheaper than applying for a personal loan or cancelling the mortgage. - It gives you more financial freedom. What are the disadvantages? - The requirements for granting it are more demanding. - Extending the term increases the total interest you end up paying at the end of the loan term. - You will have to pay expenses for the novation, which is the operation of modifying the conditions of a mortgage loan: the commission that oscillates between 0.1% and 1%, the notary expenses that cannot exceed in any case 0.5% of the pending amount to pay and is divided equally between the bank and you, the agency expenses that oscillate between 150 and 350 Euros, and a new appraisal of the property if the previous one is more than 6 months old and that supposes between 200 and 400 Euros. Since the entry into force of the new mortgage law, the stamp tax is assumed by the financial institution. If you have more than 20 years left to pay the mortgage in full, you are going to finish paying it when you are 70 years old or more, or you have other long term debts; it is very difficult for them to authorize the mortgage extension. At ESPHOUSES, in order to get you a mortgage for the purchase of your home [ https://www.esphouses.es/servicios/conseguir-hipoteca-para-la-compra-de-una-vivienda/ ] We collaborate with the main banks in Spain: Banco Santander, Banco Sabadell, La Caixa, Bankia, Bankinter and Deutsche Bank, to get you a mortgage of up to 80% and with the best conditions in the market. Contact us.