Nowadays, several credit agencies offer on their site simulation tools before embarking on the subscription of a property. This step allows the borrower to pre-assess the charges he will have to pay monthly based on the home loan he will choose. This is also important in determining whether the subscriber’s debt status is low enough to suit the bank’s conditions.
Benefits of mortgage simulation
On moncreditimmo.org , one can find various information on the mortgage loan. A real estate mortgage simulation has several advantages. It mainly has a major impact on the preparation and realization of a real estate project.
Indeed, in a credit simulator, are taken into account: household income, current expenses and the project. The result obtained will thus make it possible to better target credit institutions that are more in line with the expectations of a borrower.
A mortgage simulation offers two options:
– To determine the amount of the monthly payments to be paid with the duration of the loan
– To define the amount of credit to be subscribed.
Preliminary calculations will help in estimating monthly payments to maturity of the loan. The credit rate used in the simulation will be the average rate used over twenty years. It is also possible to include in this calculation the amount of the credit insurance rate which will be determined according to the amount of the loan. Thanks to the simulation tool, we also have the possibility to consider other types of real estate loans, for example the zero interest rate. Do not forget also to put in the note, the notary fees if any.
Conduct of a mortgage simulation
In order to define its borrowing capacity, the borrower has various online simulation tools. According to the site, different boxes are to be filled with the necessary data for the simulation. Generally, are to mention:
– The amount of revenue per month of the borrower and co-borrower if any. We can also mention extra-recurring resources.
– Fixed charges payable: monthly installments of current credits, monthly charges, rent.
Some simulators also offer to do some calculations in the case where the borrower opts for a zero rate loan or PTZ. For this, the boxes to be completed concern:
– The price of housing
– The cost of the work to be undertaken
– The personal contribution made by the borrower
– The reference tax revenue
– The number of inhabitants in a home.