Important to the loan calculator
- Consider all cost factors
Include interest rate adjustments, special repayments and other eventualities to get a realistic result.
- Always use
Unless already done automatically, you should always specify a purpose in your loan – this will often give you lower interest rates.
- Use modernization loan for existing real estate
If you are a property owner, you can finance minor repairs and refurbishments through this loan.
Banks and building societies are increasingly attracting your attention – the focus is often on mortgage lending. In the course of this, the institutes always give a representative calculation example, in which the conditions are included that ⅔ actually receive from all credit customers. However, this is not enough for a comparison because there is a lack of important information on fixed interest rates, the repayment installment, special repayments and the like. An important first step to finding the right loan for you is a loan comparison in addition to the loan calculator.
This is how the loan calculator works
Building societies as well as banks generally use statistical data and empirical values in order to assess you as a customer for mortgage lending. In addition, they set the interest rate predominantly on a credit rating basis. However, it often makes more sense to compare different providers and find the best financing for you – the Finance Calculator calculator will help you.
The loan calculator not only calculates the required loan amount for your building project: it also shows how expensive the purchase price of your dream property can be on the basis of the data given by you. The best way to use the Loan Calculator online is to have your financial situation fully reviewed to get a true-to-life result. With the help of the calculated maximum purchase price, you can start looking for a suitable reality – however, you should not sign the contract until the mortgage financing has been completed.
An advantage of the loan calculator is that you can compare over 500 providers directly after the calculation of your loan amount. You can use the calculator completely free of charge and without obligation.
This information is required
If you would like to use the loan calculator correctly, you should enter the following information:
This aspect sometimes has the most influence on the purchase price: the higher the equity, the higher the maximum purchase price. If all other data remain the same, this aspect does not affect the amount of the loan.
- Monthly request rate
The monthly request rate is the amount you are willing to pay each month for the loan. The smaller this rate fails, the smaller the loan amount – and thus the purchase price of the reality. This is solely due to the fact that the providers want to get the loan back as soon as possible.
- Effective interest rate
This interest rate not only indicates how high the provider pays the loan interest – also incidental costs such as the processing fees and the term are included in its calculation. So he indicates how the total cost of the loan interest. The higher the interest, the smaller the loan amount.
- Initial eradication
Borrowers are prepared to pay this percentage at the beginning of the loan debt. Typically, a repayment rate of 1 percent of the loan amount is set. The higher the initial repayment, the lower the loan will be.
If a broker is commissioned to find a property or real estate, it must be paid. The amount of this commission affects the purchase price: the more the broker receives, the less left over from the purchase price for the home.
- Other costs
The same applies to other costs: this includes all costs incurred in addition to the purchase price. If these are increased, the maximum purchase price becomes lower.
How to get cheap loans
In order to obtain the best possible credit, special attention should be paid to interest, equity, maturity and intended use.
- As low as possible loan amount
Use as much equity as you can. Because the more you invest in the future home, the lower the loan amount, which must be repaid later. Also, raise low-interest cash investments and use them for mortgage lending.
- Short term
Calculate how much you can pay monthly. Then choose the appropriate maturity – the shorter, the cheaper the loan.
- Fixed use
Always choose a loan with a fixed purpose, as these are always cheaper than freely usable loans. For a property worth a real estate loan.
- Involve second borrower
Choose a second borrower who is also liable for the repayment of the loan. This gives the lender more collateral.
- Offer additional collateral
Provide the bank with collateral to reduce the cost of borrowing. These may be guarantors, but also land charges or capital insurances.
- To arrange special repayments
Special repayments can be arranged with the respective financial institution. They offer the possibility to pay additional amounts in addition to the usual repayment, in order to repay the loan faster.
Also, the loan calculator can help you to find a cheap loan : Enter all the important data and compare the individual offers together. Pay particular attention to the interest rate or the annual percentage rate of charge: this indicates what costs you actually pay each year. The interest rate, which is sometimes dependent on maturity, is regularly compared by experts and specialist journals and evaluated as an average interest rate – if the offered interest rate is lower than or equal to this, then it is a good interest rate.
Calculation: How much can I afford?
It makes sense to calculate what monthly amount you can afford before you make a loan.
- First, look through the bank statements of the last six months and list all regular income and expenses.
- Then calculate the proportionate cost of annual insurance premiums, utility bills or public charges.
- From the now visible monthly surplus you still have to deduct reserves for repairs, vacations and the like.
- Try to be as generous as possible when deducting the costs from point 3, because there may always be unexpected costs to you that were not planned.
Finally, you get a value that stays on average a month. And that’s ultimately the value that you can use as a monthly installment for funding.
If you want to pay consistent installments in the future, you can also use the Annuity Loan Loan Calculator. In this loan, the monthly rate (annuity) remains the same, it consists of repayment and interest together. The lower the interest rate that you can commit to for years, the faster you can service the loan. Especially mortgage lending, which is completed during a low-interest phase, thus also enable higher loan amounts.
Consider all costs
Always calculate the additional costs for the purchase of real estate. For example, the broker must be paid, and the notary fees and the land transfer tax must be observed. You should also remember the entry in the land register.
Installment loan or mortgage lending: what makes sense?
Who needs a loan for his construction project or the purchase of real estate, should first find out which type of loan is best for him: Worth a installment loan or mortgage lending?
What makes up the installment loan?
A installment loan can be used completely freely. Normally, you only have to transfer your salary claims to the bank. How much you can claim from this personal loan depends primarily on your credit rating and your household net income. This loan is usually used only for smaller financings up to € 70,000 – exceed this amount, high interest due. Some variants of the installment loan are:
- The real estate loan
This loan can be used to build or buy a house. Since the purchase of the property is given a certain security, you often get a cheaper credit hereby.
- The modernization loan
The modernization loan can be used if you already own a property but would like to make structural changes to it. This loan is earmarked – you must therefore prove your ownership by means of land register entries, tax declarations or the like.
- The renovation loan
For cosmetic repairs, the renovation loan is suitable – this is earmarked and therefore attracts lower interest than a conventional installment loan.
What is a mortgage?
As a rule, a mortgage lending is used if the cost of a home over about 70,000 euros. This financing is always tied to the respective property – the bank secures the right to exploit the house through a mortgage in the land register. If you can not pay several installments, the financial institution can realize the property and repatriate part of the loan. This approach reduces the risk to the bank or building society. As a result, the institute gives you a much cheaper interest rate.
Additional costs are incurred for mortgage lending, in particular through notary fees and costs for estimates, land register entries and, if necessary, brokers. The land also requires you to pay part of the purchase price in the form of land transfer tax, sometimes up to 5.5 percent.
Sell property only after eradication
If you have completely repaid the loan, the mortgage of the financial institution is also deleted. Before that, however, you can not sell the property – unless the buyer takes over the mortgage.
Step by step to mortgage lending thanks to loan calculator
If you are looking for tailor-made mortgage lending, Financedel’s Loan Calculator will help you find the right provider quickly and easily. It makes sense to first consider some considerations:
- What do you need financing for?
If it is a cheap condominium or minor repairs, use a normal loan at best. If, on the other hand, you are purchasing a larger property, you should resort to mortgage lending. So you can benefit from more favorable conditions.
- How does the loan calculator help you?
Using the Loan Calculator, you can find out what loan amount you received on the data you provided. You can also calculate the maximum purchase price of the desired property.
If you have decided to do mortgage lending, you should determine your loan volume – this is the only way to know how much you can pay monthly to pay off the loan. So check your monthly earnings and expenses and figure out how much you’ll ultimately have to pay for the loan. Also, find out what brokerage commissions you have in your area and what you need to pay to pay for them. With this information, you can finally use the loan calculator.
- Enter all necessary information in the loan calculator.
- Click on “Calculate Loan Amount”.
- You will receive an overview of the loan amount and the maximum purchase price. If necessary, change the initial repayment, the effective interest rate or the monthly installment to check your possible price range.
- Click on “Calculate construction rates”. You will get to a list of more than 500 providers.
- Enter your postal code, your method of financing and your net loan. You can also specify the repayment installment and the debit interest commitment.
- With “Filter & Sort” you can tailor the result list even better. Enter your employment, your provider selection and the sorting of the list here.
- Compare the individual offers with each other and choose the right service provider for you.
- Some of the listed providers can notify you via contact form, others will take you directly to the respective website. In the best case, contact several service providers in order to balance the offers tailored directly to you.
If you have come into contact with the right supplier, all you have to do is submit the required documents. Incidentally, in some cases it is possible to obtain the loan through an online procedure – however, you will need to perform a post-identification procedure to identify yourself.
Financedel Loan Calculator is the ideal way to find the right lender and loan for your purposes.
questions and answers
Can I also use the loan calculator to calculate the annuity loan?
The annuity loan is a loan in which the monthly rate remains the same throughout. However, the more that is repaid from the loan amount, the lower the interest component. In the same turn, however, the repayment share is increased – this leaves the monthly rate the same. So it makes sense to use a calculator designed for this particular loan. Nevertheless, if the above loan calculator is used, it should always be clarified with the individual providers that it should be an annuity loan.
Can I also use the loan calculator to calculate the forward / follow-up loan?
The forward loan can be completed before the loan is even used. Advantageous: If the loan is disbursed at a later date, the interest rate fixed at the time of the conclusion of the loan still applies. This type of loan is mostly used on real estate to prevent rising interest rates. The loan calculator can therefore be used for this – that it comes to a follow-up loan, but should be clarified with the appropriate provider.
What advantages does the online loan calculator have?
An advantage of the loan calculator is that you can use it completely free of charge and without obligation. In addition, the loan calculator can be operated easily and without much time. You received all offers at a glance and can compare them transparently. It should also be noted that the conditions listed are often cheaper online than in the branch banks.