2. Calculation of how expensive the property may be as a whole
The second step is a mortgage calculator. This indicates how expensive the property can be in total and how much you can borrow. Various factors are taken into account. On the one hand, your fixed amount plays a major role for the monthly rates. Another factor is the planned duration until the loan is fully repaid.
Most borrowers want to be debt-free by retirement age. So deduct your age from retirement age to determine the term. If you already have equity, you can also specify it. In addition, a mortgage calculator also includes future ancillary costs. Therefore, you need to specify the location of the property.
3. Calculate the repayment plan
There are financing calculators that also provide you with a detailed financing plan. If you have set a loan amount for yourself, you can calculate various factors by specifying the interest rate and the repayment rate per year. These include the amount of monthly instalments under this plan, the annual interest charge, and the residual debt after each year. People often ask about the borrowing rate commitment period. This is the period during which the interest rate does not change according to the contract.
As a rule, the selected lender offers a financing calculator with a detailed financing plan. Online there are some financing calculators with which you can calculate in advance.