Making the decision to borrow money from a bank or financial institution to finance one’s real estate project is far from being an insignificant choice. Indeed, by using a mortgage or a mortgage, you put the realization of your project and your financial stability at stake.
For a credit to be advantageous and to achieve its objectives, it deserves a good reflection.
Today, online tools are available to individuals who wish to borrow, to give them an overview of interest and monthly payments they will have to pay regularly, if they subscribe to a mortgage.
Calculate your monthly payments via online mortgage simulators
There are more and more solutions that allow individuals wishing to subscribe to mortgage credit agreements, to simulate their loan beforehand. It is indeed very important to have an overview of the costs that a credit can entail, before signing the loan agreement.
Simulating one’s real estate loan not only allows one to see if it would be possible to repay the bank’s money but also to identify the most attractive offer that makes it easier to repay the amount borrowed. To know the monthly payments that you will have to pay compared to a credit offer, you must indicate on a real estate mortgage calculator, 4 important data:
- the desired loan amount
- the length of time you expect to repay the money
- the interest rate of the loan
- the insurance rate
From these 4 data, you will easily get the amount of drafts you should pay every month.
Simulate your monthly payments according to the type of loan
The proposed credit offer varies from one credit institution to another. This must be taken into account when calculating your credit. Otherwise, the amount of your monthly payments also depends on the type of loan chosen.
The mortgage money to which you wish to subscribe can be either fixed rate or variable rate. In addition, according to each bank, the APR can be higher or more affordable.
To determine your monthly payments
you should first inform yourself about the APR applied by the credit agency where you want to borrow the money. The APR (annual percentage rate of charge) corresponds to the total cost of the various expenses necessary for the assembly of your file and the loan itself.
These fees may correspond to service charges, application fees or administrative costs. Regarding the interest rate of the loan, it is easier to calculate your monthly payments if the loan is fixed rate even if it is possible to benefit from a reduction in the monthly payment, with a variable rate loan.
Use a broker to calculate monthly payments
Using a broker can also make it easier to calculate monthly payments, especially if you want to find the institution offering the most advantageous credit offer.
Accustomed to working with banks, a mortgage broker may negotiate certain conditions with the bank to reduce monthly payments.
He will also be able to identify any charges that credit agencies do not specify. And this often, when signing the contract. In addition, if you want to borrow safely, it is safer to use a broker who can submit your file to the bank, for you.
Applying to a broker is essential, if you have very little time for the steps of obtaining the loan.
In any case, whether or not you choose to use a broker, remember to always calculate your monthly payments before you commit.