The Right Choices for the Loan Calculator
This spring, you decided to take the plunge? You are right, now is the perfect time to buy. Historically low rates, advantageous tax measures, everything is there! Follow our tips for a successful real estate investment and obtaining the most advantageous credit.
Evaluate your borrowing capacity
Before committing to a purchasing project, it is important to analyze your financial situation. First of all, assess the amount of your income (salaries, rental income, savings, family allowances, alimony received) and your charges other than those related to your consumption (current loans, alimony paid).
This information will help you determine your maximum debt capacity, which should not exceed one third of income, or 33%. This limit is applied by many banking establishments. The goal is to avoid the financial trap of over-indebtedness on the part of customers. In mlcalc.com you can have the best deal with the loan calculator.
To easily calculate your borrowing capacity, use an online calculator
Our advice: It is good to take your remaining life into account as well. It represents the monthly amount available after all your credits and charges have been paid. Certain charges are included in your borrowing capacity, in particular income taxes and property tax.
If your remaining life is limited, our advice is to take a monthly payment that is lighter than your maximum debt capacity or to extend the duration of the credit. So you will keep flexibility in managing your budget and be able to deal with unforeseen events.
- For their mortgage, most French people naturally get information from their bank. Warning! It is not necessarily his bank that offers the best solution. And this even if you have been a customer for many years. It is for this reason that it is important to compare what can be offered to you.
- Our advice is to contact a mortgage broker. He will take care of finding you the best solution adapted to your project from his network of partner banks.
- In addition, he will make you benefit from his expertise in the field. For example, for some cases, it is more interesting to borrow over a longer period if the interest rate is the same.
- But beware! Do not focus exclusively on the rates, other elements are of great importance in evaluating a mortgage offer.
It’s not just the rate
In addition to the rate, several criteria will vary the cost of your credit:
- the loan period
- application fee
- the cost of loan insurance (depending on the terms you choose)
Finally, other elements influence the cost of your mortgage but can also give you some flexibility throughout your loan:
- modulation of monthly payments in the event of a change of situation (they are contractual in the general conditions)
- the postponement of monthly payments by six months
- partial or total deferral of interest in the event of work or a bridging loan
If all these cumulative costs are not negligible, the one to negotiate in priority is loan insurance.
Opt for insurance delegation
A mortgage must be secured by insurance, covering at least disability and death. The goal is that it takes charge, if necessary, of the repayment of the loan and thus covers the other members of the family.
All banks will be able to offer you a loan insurance offer. But, the optimal solution to find the contract with the best conditions is to contact an insurance broker. Delegation of insurance can allow you to reduce the cost of your credit up to € 10,000.