Simulate a mortgage
Have you found your dream home? Or do you want to build your future house? You will now have to think about financing your property. Indeed these days rare are the people who buy their house without resorting to a credit. But how do you know the amount of your future monthly payments? Or how to choose the duration of your mortgage, and the one that best meets your expectations and your needs? The mortgage simulator is there to help you find your way around and answer your questions, thanks to these simulation tools.
The mortgage and its specificities
A mortgage is granted by a bank in order to finance your property, whether for a house, an apartment or even land. Different types of real estate loans exist, and will be offered to you, depending on your project, or even your situation.
In the event that you wish to acquire your property as a main residence, you can resort to assisted loans, that is to say granted by the State, subject to meeting the conditions for obtaining it. The zero rate loan, also called PTZ +, is one of them. It allows a household of first-time buyers to help them access the property, in the case of a new property, or in some cases, an old property, under certain conditions.
Among the types of loans, the bank loan is the most common financing. All banks are able to offer them. There are several kinds :
- The amortizable loan: this is the most common loan in United States. The monthly payments made by the borrower each month amortize the borrowed capital and repay the mortgage interest over time. The last maturity of the mortgage means that the loan is fully repaid.
- The loan In fine: Unlike the amortisable loan, the capital is not reimbursed through monthly payments. It concerns borrowers who have available savings on which the financing will be backed. All of the borrowed capital will be repaid at the last due date.
- The bridging loan: The bridging loan is not amortizable. It concerns borrowers who already own real estate, which they wish to put up for sale, and which will not be sold before purchasing a new home.
Simulate your mortgage
Thanks to the simulator, you can not only compare the different types of loans, but also calculate your future monthly payments. With a few clicks, you can quickly assess the amount of monthly payments you will have to repay depending on the amount borrowed and the duration of your mortgage. It is also important to know your borrowing capacity. The simulator will also allow you to estimate the maximum amount of property that you can buy and thus determine the amount of your future loan.
Finally, an important point, which will also be calculated by the bank with which you will subscribe your mortgage: the calculation of your debt ratio. The simulator will calculate your debt ratio for you based on your income and current charges. The maximum debt ratio is around 33% of your income.
The mortgage simulator also allows you to compare the different mortgage offers, which are numerous. Many criteria must be taken into account and you must know the different points that you must compare: the interest rate of the loan, the duration of the loan, the cost of the insurance but above all the total cost of the credit.
It will also be necessary to know if the interest rate is fixed or adjustable. With a fixed rate, the borrower knows the interest rate from the start of his loan and therefore the amount of his monthly payment. It will be fixed for the duration of the loan. For the revisable rate, the monthly payment varies over time according to a benchmark. Many adjustable rate loan formulas have been revised to protect borrowers from any rate hikes that may apply.
The mortgage calculator also allows you to calculate the savings you can make if you want to renegotiate your loan. Indeed, current rates are more advantageous than a few years ago. Thanks to the simulator, you will be able to calculate the impact of a renegotiation, and know if you can lower the cost of your credit, and reduce your monthly payments and the duration of your mortgage.
Among all the features of the mortgage simulator, you can also assess the notary fees that you will have to pay. They depend on the type of good purchased and will always be your responsibility. Finally, you will be able to view your amortization table, with the detail by month or by year of your repayments throughout the duration of your mortgage.
The mortgage simulator is therefore the essential tool for the proper preparation of your real estate project.