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When applying for and signing a mortgage, it is important to take into account several issues : the main requirements to apply for it, the type of mortgage that best suits us or the cost that assuming a mortgage loan will entail for our pocket. For all this, it is essential to calculate the corresponding installments and with our mortgage simulator you will be able to do it.
What is a mortgage simulator?
A mortgage simulator is an online financial tool with which you can calculate, in a simple way and in a short time, the fundamental data of your future mortgage ( interest rate, duration of the loan, how much it will cost, etc.). Thus, you can count on future forecasts based on your personal and economic characteristics. The mortgage simulator allows you to know the mortgage payment of the house, but it also asks you for information about the type of house you want to buy and the savings you have to get it, as well as personal data such as age, in order to clarify your doubts about what type of mortgage is best for you according to your financial situation.
Types of mortgage simulator
We can differentiate three types of mortgage simulators:
- Simple or basic simulator: in this type of mortgage simulator you can make changes to the term of the mortgage to increase or reduce the monthly installment and thus adapt it to your ability to pay.
- Mortgage simulator with amortization tables: they are more complete simulators because they show us the amortization tables and the total amounts that are paid at the end of the mortgage.
- Real estate and bank simulator: they include other conditions, the offers of the banks and the interest rates offered by each one. For this reason, they are much more accurate than the other simulators.
How does it work
The operation of a mortgage credit simulator is very easy. It is only necessary to enter a series of basic data, from which the simulator analyzes the mortgage. The variables with which the simulator works to calculate the fee are:
- The amount to request, is the amount of money you need for the mortgage loan.
- The term, is the number of years in which you are going to repay this loan.
- The interest rate, which can be fixed or variable .
- The loan installment, that is, the amount to be paid per month.
Thus, knowing the amount you need, the interest rate and the term in which you are going to pay said loan, the simulator will give you the amount of the mortgage payment and the number of installments that you will have to pay.
What is the mortgage simulator for?
In addition to calculating the mortgage payment (that is, how much it will cost), the mortgage credit simulator also allows you to calculate the loan conditions . As well as assessing how the installments may vary depending on the evolution of the reference index and the mortgage loan amortization table.
In this way, you will be able to know how much money you need to acquire your future home .
To obtain more rigorous information about your mortgage, it is advisable to use your bank’s simulator to calculate its conditions.
Calculate your mortgage payment
Simulator provides you with all the useful information you need to know what type of mortgage suits you best and how much you will have to pay per month for it. So you can start counting.
To calculate your mortgage, you must first access simulator, which will ask you these questions:
- What are you going to use it for? (as habitual residence or as second residence)
- Age of the youngest holder ?
- How much does housing cost you?
Based on the answers to these three questions (purpose of the property, age of the owner and price), the mortgage simulator calculates the monthly payment for the first year, which will be different depending on whether it is a fixed or variable rate.
Now that we have seen how our simulator works, we encourage you to use this tool to find out which mortgage is best suited to you and how much it will cost. In addition, you can take a look at other posts about mortgages of possible interest and usefulness for your mortgage situation.