Mortgage loans must be adapted
Mortgage loans are generally long loans, often spread over a period of 10 to 30 years, sometimes 40 years. In all cases, it must be reimbursed before your retirement age. Different types of mortgage credit exist: fixed rate credit and variable rate credit. This is why it is very important to compare them before you commit for so long. Ask for a simulation online to get a fairly good idea of the amounts. In the majority of cases, the monthly payments of your mortgage should not exceed 1/3 of your financial income.
The types of mortgage that can be requested
Whether it's an acquisition or a construction, a real estate project is never easy to achieve. Fortunately, it is possible to benefit from various financial aids. Here is a list of mortgage loans to consult.
The bridging loan is a kind of transitional credit that offers the possibility to an owner seeking to acquire a new property to obtain it even before the sale of another property is finalized.
Unlike the amortizable loan, the loan in fine is a loan with which you only repay the interest for no term. The borrowed capital is therefore reimbursed only once at maturity.
Existing since 1993, the social home loan is a mortgage loan mainly designed for people with a modest income in order to facilitate their access to home ownership. It allows the borrower to benefit from Personalized Housing Assistance (APL).
The loan agreement is part of the category of assisted loans. It is intended for owners who wish to do work on their main residence as well as for those who wish to acquire one.
The zero rate loan is a free home loan that partially finances the purchase or construction of your first main residence. The funding granted can go up to 40% of the project.
A mortgage without contribution is a financing solution that allows you to borrow without personal contribution. To benefit from such a loan, it is generally necessary to have a good profile and a good savings capacity.
All the details to get the best mortgage
- Rate barometer
- Monthly payment calculation
- Borrowing capacity calculation
- Credit amount
First home loan: what to remember?
If this is your first time thinking about taking out a home loan, here's what to remember. First of all, to qualify for a mortgage, you must have a solid situation that will allow you to assume the credit charges. However, there are subsidized loans intended for people with limited income. Credit organizations rely on a few criteria, including the repayment capacity, the amount, and the real estate project, to set the interest rate and to grant the loan. Faced with the many loan offers that you will be able to see on the market, doing a mortgage loan simulation will allow you to make a more informed choice and easily find the contract that will best meet your needs. A rate barometer can also help you monitor changes in mortgage rates.
Mortgage broker vs loan comparator: which one is more advantageous?
Before taking out a mortgage, you can choose to be accompanied by a credit broker or to use a free mortgage simulator. It is difficult to determine which one is the most beneficial, as it mainly depends on the needs of each individual. However, if you want to have the freedom to choose the contract, a loan comparator is best suited. Various options of this tool can also allow you to perform a monthly payment calculation in order to have an idea of the charges to be paid.
Brokers are generally attached to a credit house, which obliges them to offer exclusively the products of the mortgage institution they represent. In addition, brokers often ask for remuneration, unlike a loan comparator which is completely free. Finally, using a comparator allows you to save time if you are looking for a cheap mortgage.
Mortgage loan: loan amount and borrowing capacity
The amount of a home loan is generally valued from 50,000 us dollars. If the loan amount is lower than this price, credit organizations generally advise taking out a personal loan, which allows you to avoid mortgage fees and administrative fees. The ceiling of a mortgage depends on your repayment capacity. Also, to determine how much to borrow, it is necessary to assess your financial situation. The borrowing capacity calculation can be done directly online through a comparator. The interest rate will then be calculated based on the total amount of the loan. The monthly repayment installments are generally set between 30 and 35% of income. To know the amount of the mortgage that you can really afford, it is advisable to use a credit calculator. This allows you to have an estimate of the interest rates as well as the monthly payments.
Some tips to get your mortgage more easily
To obtain a mortgage easily, you must present an attractive file. The better the file is assembled, the faster you can get a response. To do this, it is necessary to know the criteria on which banks and credit organizations base themselves to assess your situation. One of the first criteria that financial institutions rely on is income. The amount of credit can be determined by this criterion. They also take into account the personal contribution, the debt capacity and the ability to save. But it is possible to escape most of these conditions by taking out a mortgage online. To put the odds on your side, play against the competition and choose the offer that meets your means. Before you apply for credit, do a little assessment to find out what you can afford.
Three recurring questions about mortgage loans
What is the best mortgage lender?
When you decide to take out a mortgage, you are particularly interested in the "cost" aspect. of the loan. You should know that the proposed formulas, as well as the corresponding prices are different depending on the credit organization. The secret to finding the best mortgage lender is to compare offers.
How to calculate the cost of a mortgage?
To check the real cost of a mortgage, you must ask the credit organization for what is called the "? Global effective rate?". The APR includes both the different rates and the costs that will be incurred in taking out the loan contract. In the case of a mortgage, to seal the contract, special administrative formalities are required.
How to get a mortgage online at the best rate?
To get online credit at the best rate, you can do an online credit simulation before making your choice. It will be a question of choosing the credit institution and the offer that best meets your needs. The simulation will show you the different rates that will be applied to it and the total cost depending on the formula.
What type of mortgage to choose?
Choose a duration that suits your current life without forgetting to think about the future. The repayment period of your mortgage loan strongly influences the amount of monthly payments to be paid as well as the total cost of the loan.
You can choose between two types of interest to repay:
- Fixed rate mortgage : it will not vary throughout the duration of your loan. This is a reasonable choice because you know in advance the amount of your monthly payments. To choose especially if the rates are low!
- Variable rate mortgage : the base rate will be revised according to the evolution of market rates, up or down.
The monthly payments can therefore increase or decrease but these variations are limited according to the contract you have concluded. It's riskier, but you can win if you've borrowed at a high rate. It will be adapted according to the chosen formula (every 3 or 5 years…), several times during the term of your mortgage loan.
What are the conditions for obtaining a mortgage?
Be 18 years old and have sufficient income! When you apply for credit online, your contact will assess your ability to repay your mortgage. It mainly observes: your income and possible savings, the amount of your current expenses and your debts. This review is important for you too, it allows you to avoid committing to a loan that is beyond your means. Nowadays, banks are reluctant to lend the full amount needed and demand a personal contribution from you. Turn to online mortgage loans, their conditions are more flexible.
Costs associated with a mortgage
This is a very important question because the additional fees greatly increase the total amount of the loan. In addition to interest, you will have to pay the costs of appraisal of the property, any file, notary fees and costs, taxes collected by the State, VAT as well as outstanding balance insurance. These are the one-off fees, to be paid once when you take out the loan.