Average cost of a home loan → how to calculate it?

You who are planning to make a home loan with a bank. This is surely a very good idea since you could accomplish your project in the best conditions. However, you must know that each mortgage has its own specificities and therefore its own cost that differentiates it from others. This is what we will see below.

Let’s first look at the cost of interest

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Most of the time, to make a loan, you will have the choice between two types of rates which are the fixed rate and the variable rate. Unlike the second, the first type allows for a rate and therefore fixed deadlines. It should be noted that as a general rule, the more money you borrow will be substantial and the higher the interest and / or bank guarantees.

And regarding the cost of insurance?

Know first of all that insurance has become mandatory for any mortgage in a bank. This action will prevent your children from paying off your debt in case you are faced with a sudden incapacity case. Concern the price, note that your insurance will generally cost you between 0.30 and 0.50% of the amount you will receive from the bank and will be added to your monthly payment.

How much should you pay for the actual fees?

The fees are considered as ancillary costs if you make a mortgage . These usually include the amount you should pay the bank to pay for the administrative procedures of your file to name only the tax stamps and registration fees. By cons, you should know that this kind of action should not cost you more than 20 euros.

Let’s talk about the fees of a broker last

In this last point, note that the fee of a broker will also depend on the firm you will join. In other words, a small or new box will probably ask you less money than a brokerage firm experienced in mortgage lending and consolidation . You might even be dealing with a broker who is already working closely with your bank. As a result, you would not have to pay the person who will help you. In addition, this will not prevent you from properly checking the cost of service of your broker to make sure that the mortgage you want to do you will benefit or not. Generally, a broker will only cost you between 500 and 2000 euros.

In conclusion, we can say that the average cost of a home loan will depend on a few points not to be overlooked. Indeed, you will have to take into account, the sum which you want to have as well as the expenses of your file. To this must be added the cost of your insurance and any broker fees you may incur to represent you at the bank.

 

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