The loan calculator for real estate leads quickly and easily to the cheapest loan. The operation is very simple, but you should consider these five tips. Not only do they help save money, they also reassure the future.
Installment loan calculator. This is mainly due to the fact that the house serves as collateral for real estate loans. This ensures low interest rates, because the bank can auction off the house in case of bankruptcy and thus get back all or most of its money, even if the borrower can no longer pay.
Important for the loan calculator for real estate is therefore the amount of equity. Because the prices of apartments and houses vary, a house is fully financed by a real estate loan, then the money from foreclosure in a price decline may not be enough to repay the mortgage.
Therefore, customers must also provide data for the desired object. Banks also estimate the risk of default based on these data. Banks often grant the most favorable interest rates from an equity ratio of 40 percent. If you want to buy an asset worth 200,000 USD, you must bring in 80,000 USD of equity in order to obtain the particularly favorable conditions.
For example, the web provides budget calculators that allow customers to calculate how much credit they can borrow at a given interest rate and fixed monthly rate.
Some banks offer financing of the full purchase price via credit, however, the burden rises twice as the loan amount increases. Once, because the loan amount is higher and once, because the interest rate increases. Instead of 2.0 percent of 200,000 USD, for example, 2.5 percent of 300,000 USD have to be paid.
The consequences are either increasing monthly burdens or a longer duration. But at least the monthly interest must be paid, the burden can not be lower. When deciding on the amount of monthly installments, there should also be some leeway if the car or the washing machine breaks down.
Particularly problematic is the loss of the job. Hardly any calculation can sustain a long period of unemployment, especially if only one income is available to a household. However, a short break in the main income should not immediately bring down the entire financing.
Security, for example, offers credit insurance, which was, however, largely badly valued by Reyn Gabung. It is usually better to leave some room for unforeseen events when calculating.
Not unforeseen, however, are the costs incurred directly after the purchase of the house. The most important are
Notary fees and property transfer taxes are incurred with each purchase, brokerage fees can be avoided by a direct purchase from the landlord under certain circumstances. Whether money for new furniture must be planned, depends also on the equipment of the old flat and the own requirement.
These costs may not be added to the value of the house in the credit comparison for real estate, but must be deducted from equity. For furnishings, other forms of financing than cash may make sense. If the furniture store offers cheap financing, it is often better to accept the offer and use the equity to reduce the loan amount.
The level of interest rates in the credit comparison for real estate also depends on fixed interest rates. Anyone who repays a loan over 30 years has by no means guaranteed the interest for that time. Often they are fixed only for five or ten years, then they are recalculated on the then applicable interest rates.
Anyone who has just calculated, then can survive a nasty surprise. Shortly before the 2008 financial crisis, for example, interest rates were still more than 3.0 percentage points higher than in 2015.
Borrowers should therefore consider choosing an interest rate commitment over ten or even 15 years. Until then, usually a large part of the loan is repaid, which also reduces the interest burden. The interest is calculated only on the remaining debt, who has already repaid half of a loan of 100,000 USD, the only has to raise interest for 50,000 USD.
However, long-term loans are often much more expensive. It is therefore worthwhile in the real estate loan comparison to calculate different variants.
Each repaid euro lowers the interest charge. At constant rates, this means that more and more is repaid. And the faster the loan is repaid, the lower the risk of getting into a new high-yielding phase. A high eradication is therefore important, but at the same time leave room for unforeseen costs.
The royal road is therefore free special repayments. At least once a year, there should be an opportunity to repay a relevant portion of the loan, for example, 5.0 percent, without additional fees.
Such special repayments are especially attractive if more money than planned is left over. If, on the other hand, the income rises permanently, then an increase in the monthly installments makes more sense. Because then the money can be repaid immediately and not only at the end of the year, which saves interest.
How strong a higher rate affects, the above graph shows. Anyone who raises a loan of 100,000.00 USD at 1.73 percent interest monthly 200.00 USD in repayments and interest, would have paid off his loan only after more than 73 years.
Who raises 400.00 USD, which is already after a bit more than 25 debt-free. In the first case, around 75,000.00 USD were paid over time despite the low interest rate, in the second it was less than 25,000.00 USD.
In the credit comparison for real estate, of course, interest rates must play a major role. Users must not forget to take into account additional costs for the notary or the broker in the credit calculator for real estate and deduct from equity. In addition, the financing should not be approached too optimistically, it is better in the real estate loan comparison to pay attention to free special repayments and the possibility of an installment adjustment.