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To calculate the mortgage payment, you need to know the loan amount, interest rate and loan term. Here's how to do it.
Many people wonder what formula is used to calculate a mortgage payment and what elements need to be taken into account when doing so. This is an important question for those considering taking out a loan to purchase real estate. It is important to understand how much you need to request from the bank and how much the loan will cost in the end. Calculating your mortgage payment requires three key elements: the loan amount, the interest rate, and the loan term. The mathematical formula for calculating the mortgage payment is as follows:
For a more convenient and quick calculation, you can use the online mortgage payment calculator.
To calculate your mortgage payment yourself, you need to collect several important data:
The main types of interest rates include:
It is also important to consider:
Using the formula:
Where:
Example: for a loan of 100,000 euros with a TAN of 3% and a term of 20 years (240 months):
If the loan has a variable interest rate, the calculation must be repeated each time the rate changes. Typically, such changes occur once a month, once every three months, once every six months or once a year. When using a variable rate, the calculation must be updated each time the interest rate changes. Also, if you use TAN instead of TAEG, the final payment amount may be higher due to additional costs charged by the bank.
When choosing a mortgage, it is important to consider not only the interest rate, but also all associated costs, such as insurance, loan servicing fees and other possible payments. Pay attention to the conditions for early repayment of the loan, which may include penalties or fees. Consider using online tools to compare offers from different banks to find the best deal.
It is also recommended to consult with a financial advisor who will help you assess all possible risks and choose the best loan option depending on your financial situation and goals.
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