How to compute your mortgage?
All you need to do is enter the amount of your home, the amount of savings you put down, the repayment term and the interest rate - we'll take care of the rest!
However, do you know what to consider when choosing the payment term and interest rate?
At Habitat we know how important it is to have a personalised budget that meets your needs when considering the purchase of a new home, with all the expenses and unforeseen events that may arise. That is why we consider it essential that you have all the necessary details to make a reliable and secure decision.
Thus, there are a series of variants that you should take into account when choosing a mortgage:
First of all, you should know that the most important stage of a mortgage are the first years, since if we increase the term of our mortgage, the bank will grant us a larger loan. But at the same time, this additional loan will decrease as time goes by. This is because the money you have to pay back for your mortgage in the present is worth more than a repayment in the future. This is something to take into account when calculating our mortgage.
However, this also depends on the interest rate. The higher the interest rate, the less money you will be lent in the present for the repayments you will pay in the future. Therefore, it may make sense to extend the mortgage terms in times of low interest rates and do the opposite in times of high interest rates.
Finally, when calculating your mortgage you should also consider that, on the one hand, longer terms will lead to a higher payment due to the overall inflation that will be reflected in future repayments tomorrow. However, on the other hand, an improvement in the quality of life and a higher purchasing power is expected in the future and thus a higher ability to meet future repayments.