Home loan simulation
The purchase of a home is one of the biggest investments that someone makes in his life. It is therefore recommended to first do a home loan simulation. Those who want to finance such a big step usually ask for help from a lender. Lenders are financial institutions, in the majority of cases a credit broker, who grants a loan to people who need it. For a home that is a home loan.
Although lenders do not give away a loan for free. They conclude a contract with the borrower in which he promises to repay part of the loan every month. Interest is included in those monthly payments. That is compensation that the credit broker asks in exchange for financing the house or apartment. In addition, the lenders take out a mortgage on the home. For example, they can settle the debt if the borrower fails to meet his obligations.
Factors that influence the interest rate
The level of the interest rate depends on various factors, you will also notice this during the home loan simulation. One of the most important elements is the market interest rate. The higher the interest rate, the more solid the price tag of the home loan. In addition, the lenders also look at borrower’s family situation. Among other things, they look at whether the person applying for a loan is married and whether he or she is active in the labor market. The quota, the ratio between the amount that the borrower wishes to borrow and the market value of the home, also has a major impact on the final rate.
Fixed or variable interest rate
The lenders come out with varying interest rates when someone comes to them for a home loan. The variable and the fixed interest rate are the main formulas that the lenders put forward. If you choose a fixed interest rate, you opt for a loan where the interest rate is fixed for the entire duration of the contract.
With a variable interest rate, the borrower allows a credit broker to adjust the interest at pre-agreed times. For example, that can be every year. In some situations, a credit broker works with a contract whereby the interest rate is clicked for a certain period of time and then changed at fixed times. This can be, for example, a fixed-rate period of ten years, followed by an annual interest rate change.
The credit broker usually works with home loan simulations to give their customers a picture of how big the impact of the chosen interest rate is on the monthly repayments. Such a home loan simulation can be consulted freely on the site of a credit broker. It is, therefore, possible to examine various scenarios.
Other home loan costs
In contrast to a normal loan, a home loan is associated with a number of other costs in addition to the interest. For example, the borrower must also pay estimation costs, registration fees (for the mortgage) and file costs. In addition, the credit broker asks that the borrowers take out certain insurance policies such as credit balance insurance, family insurance, and fire insurance. Credit brokers cannot oblige borrowers to take out such insurance with them. Although the majority of lenders do cut interest rates as someone who takes out insurance with the same credit broker.
Because it would be easier for borrowers to compare home loans, lenders are required to summarize all the costs associated with a home loan at an annual percentage rate of charge. Although the annual percentage rate of charge does not include all costs associated with the purchase of a home. This is the case, among other things, for notary fees and registration fees on the purchase of the home. Such costs are not included in the home loan simulations that the lenders make available on their site.
Home loan simulation
To further assist you in choosing the perfect home loan, has listed all credit brokers that offer home loans in a list. Through our simulation, you can find out on the basis of a number of personal details which lender has the best home loan for you. On our site, we take into account, among other things, the interest, the file costs and all sorts of other costs that the credit broker charges. We do not publish annual cost percentages because that figure depends on the personal situation of the borrower.
Compare home loans
Based on the home loan simulation it is much easier to compare Jonathan Harkeren and play against each other. After all, some lenders are willing to cut down on rates if a competitor comes across better terms. On our site, we only publish the posted rates. As a result, the interest that you receive may vary from the rates on our site.
Are you more interested in personal loans? Then click here. The merging of loans is also available on our site. You can find more information here.
Interest rates and product conditions change regularly. Because reliable comparisons are only possible on the basis of current data, the product information (such as interest data) that we provide is often updated daily, or as often as necessary.
Concrete example: The fixed annual cost percentage (APR): 6.99% (fixed annual actuarial lending rate: 6.99%), for an installment loan of $ 7,300 with a term of 42 months. The monthly repayment will be $ 195.72 for a total repayable amount of $ 8,220.24. The fixed annual percentage rate of charge may vary depending on the amount of credit, the duration of the credit contract, the withdrawal modalities or the chosen payment modalities. An installment loan for private individuals, subject to acceptance of your file and mutual agreement. Interest rates and product conditions change regularly. Because reliable comparisons are only possible on the basis of current data, the product information (such as interest data) that we provide is often updated daily, or as often as necessary.