Calculate loan for your house
Buying or building a home is usually accompanied by a loan for that building. Such loans are offered by lenders. Lenders are financial institutions such as private lenders that specialize in providing all types of loans. In the case of a house, that is a mortgage loan. You can request a home loan both offline and online.
Borrow for a home
The lenders charge interest in exchange for the risk they take. That interest is settled in the monthly repayments. The amount of these monthly installments depends on several factors. Lenders look, among other things, at the borrower’s financial situation when someone wants to take out a loan for buying or building a home.
Furthermore, the loan amount plays an important role. The higher the amount that the borrower wishes to borrow for his house, the greater the chance that the lender will raise the interest rate on the loan for a house. The ratio between the loan amount and the market value of the home also has an impact on the rate. That is the so-called quota. The lower the quota, the greater the chance that the lender will cut rates. The duration also has an impact on the rate. Longer maturities generally translate into higher interest rates.
Variable or fixed interest rate
Borrowers can choose between a variable or fixed interest rate. A fixed interest rate is clicked for the entire duration of the contract, while a variable interest rate can change at certain times. The times at which an interest rate can change are laid down in a contract. In other words, the borrower knows in advance when the lender can adjust the rate up or down. This can be, for example, annual or five-yearly. An interest rate rise ensures that the monthly installments become heavier and vice versa.
In some cases, lenders offer their customers the option of having a fixed-rate period followed by a period of variable interest rates. For example, a period of ten years without interest rate changes, followed by five-year interest rate changes (until the end of the contract).
A mortgage with a loan for your house
In addition to the interest, the lenders ask for a mortgage on the home. That gives the lenders the guarantee that they can get their money back. A mortgage gives them the right to sell the property in the event of default. It is true that registering mortgage costs money. The borrower then has to pay for the mortgage and notary fees, among other things.
In some cases, lenders are willing to trade in a mortgage for a mortgage mandate. In that case, the lender does not immediately take out a mortgage on the home. With a mortgage mandate, the lender will only raise a mortgage once the borrower fails to meet his obligations. In such cases, the borrower (at the start of the contract) escapes the costs involved in registering a mortgage. This does mean that the borrower must still pay for the costs in the event of a default. In addition, the purchase of a property is associated with other costs: registration fees and notary fees (for registering the property).
The lenders also charge all kinds of costs. To start with, there are file costs. They may amount to a maximum of 500 USD. In addition, the lenders may charge estimation costs. They can also request that you purchase certain products when you take out a loan for your house. Consider, for example, fire insurance, the family insurance or debt balance insurance. The price tag of all those products and the costs of a loan for your house are summarized in the annual percentage rate.
Compare mortgage loans
The annual percentage rate of charge makes it much easier for borrowers to compare home loans. Private lenders, we also want to help you in your search for the best mortgage loan. On our site, we publish the posted rates of all private lenders that offer a mortgage loan. In addition, we shed light on the various conditions that are linked to a loan for your house.
The rates that we publish on our site are the posted rates that the private lender includes in their rate lists. That means that the rate that you get from the private lender may differ from what we publish on our site. The interest rate is not fixed. That is why it is always necessary to look at which profiles apply for the loan.
Looking for a different product? On our site, we also shed light on personal loans and car loans. That way you know perfectly at which private lender you get the best loans. Cheap borrowing is therefore synonymous with comparing.