The mortgage loan is a loan taken out in order to finance projects of various kinds. It is particularly distinguished by the requirement of placing a guarantee of real estate as a sine qua non for the granting of credit. In the next few lines, we provide our advice for calculating the amount of this particular form of loan.
Calculate the amount of a mortgage
The mortgage amount will be assessed based on the value of the property offered for mortgage. A professional appointed by the credit organization will most often estimate this value. The costs incurred by this estimate will remain the responsibility of the future debtor.
Thus, the bank will grant an amount that corresponds to this value, expressed as a percentage. It can grant 50 or 80% of the value of the property, and in exceptional cases, it grants up to 100% of the estimated price of the property.
If the debtor owns several real estate assets, it is possible to base the mortgage on these assets. The value of the unlocked sum will be calculated accordingly.
Calculate the loan interest rate
Besides calculating the loan amount, it is also essential to calculate the interest rate. When subscribing, the borrower will have two choices, either a fixed interest rate or a variable interest rate.
The fixed interest rate will be defined and fixed from the start of the loan term. It cannot be modified during the loan. This first type of interest rate will make it possible to fix in advance the exact amount incurred by the loan.
The variable interest rate, on the other hand, will experience upward or downward changes at certain times during the term of the loan. In this second case, it is not possible to calculate the amount of the loan, since the interest rate could wobble.
In addition, it is possible to calculate mortgage loans from many websites, which offer an online loan simulation. This simulation will be used to assess not only the offer, but also the borrower’s ability to pay.
Compare and simulate offers
Before taking out a loan, it is essential to compare all the offers that are offered to you. You can use a broker for this purpose or use an online comparator or a credit simulator free of charge. There are some available, free and without obligation on the many online credit sites.
The first step is to compare the offers. Costs are not the only criteria; you should also refer to your needs. To do this, the choice is made according to your borrower profile, your needs and your financial situation. You can simply enter these few data online, and the comparator will present you the offers that best meet your expectations.
Secondly, the simulator will calculate the rates and all the fees that would be applied to the chosen mortgage loan formula.
This is how you can choose the mortgage at the lowest price. If you don’t, then make sure you consult a professional broker like PIF Lending.