How to calculate the maturity of a loan? In a household’s budget, the loan can be a very substantial part of the monthly budget. Indeed, if it is a mortgage , it is often the first or at least one of the first items of expenditure for the home that has subscribed. Far from us the urge to try to dissuade you so far from owning a property, on the contrary, simply it seems important to us on our blog to make you aware that everything must be under- weighed to be certain not to forget anything and not to find themselves in a very delicate situation as a result of a bad estimate of the loan maturity calculation and the consequences of its amount after its signature.
We will see below some elements that should help you to see things more clearly and help you avoid forgetting something important if you are about to start a credit (whatever it is) for that matter).
In general, here it will be rather practical, the debt ratio authorized when you go to subscribe to a loan is usually fixed (the latter is around 30% – you have probably already heard talk about the debt ratio to 33% even without knowing what it was) and you will not forget to calculate it and take it into account since the lender with whom you will do business will always be vigilant that you respect him.
For example, if you want to start a credit whatever it is, the credit file that you will mount will include as information to provide your credits in progress and the amount thereof. If you already have 33% (and even more so if you have gone beyond) of debt ratio compared to your current income, you will need to bring new guarantees and / or new guarantors to maximize the chances of obtaining a favorable outcome to your request.
To find out where you are at your current debt ratio before making an appointment with a lender, the calculation of the debt ratio is as follows:
[Cumulative sum of all your expenses (loans in progress, rent, pensions, etc. all that falls roughly within the fixed expenses range) / Cumulated sum of all your incomes (wages, aids, rents, etc. in short all which roughly fits into the fixed income range)] * 100 with a percentage result.
Preparing a credit application can already start by getting information, for example by already doing self-simulations of loans, such as mortgage simulations like the ones you can do on our site thanks to our credit calculator. immo .
However, if you are doing simulations on a possible bank loan, remember that there are many components to consider and that all are not apparent in each of your simulations. For example, we are thinking in particular of borrower insurance, which must be added to the amount of the maturity of your mortgage .
To forget nothing and before even asking for an appointment with a banking organization, put all the components of your budget on paper to make sure you do not forget anything. Indeed, besides the fact that the lender can agree to grant you the loan you are going to ask, the calculation of the maturity of your future loan must take into account your future life once this loan may be accepted.
Let’s say, for example, that you have seen an attractive mortgage offer that you could subscribe to because it just takes you to the acceptable level of debt. Will you still have enough buying power to be able to negotiate another loan in the event of a hard blow? Will you still have enough buying power to keep a number of hobbies? The offer may well be worth competing to see if another loan offer would not be even more advantageous.
To put all the chances of finding the best possible offer and allow you to benefit why not regulated loans if you need it (PTZ, PC, eco loan, etc.), as much to appeal to a credit broker. The credit broker, through his permanent or quasi-permanent knowledge of the rates charged by the banking establishments of his network of partners and by a fine analysis of your financial situation will be able to accompany you until obtaining a credit on advantageous terms.
To know the amount of the due date when you make a credit, it is necessary to add the reimbursement of the share corresponding to the capital, the repayment of interest on your credit and finally any additional costs (insurance, options …)
Monthly maturity corresponding to the repayment of the total sum borrowed + monthly payment corresponding to the reimbursement of interest on your loan (and possibly additional costs: borrower insurance, other insurance, options, etc.).
Often the additional fees do not really count in the calculation of the monthly maturity of a loan because they are billed at once at the time of signing your contract with the lender. Do not forget about the latter, that it is sometimes possible to be offered as part of a commercial gesture made by the lending agency so think about it and do not hesitate to play the competition. Although this is a very large investment overall, any small amount is always good to take.
So, now that you know how to calculate your own debt ratio and the main factors to consider before you start a loan, you just have to multiply the simulations, steps and why not recourse as we have seen at a broker so you can get the best loan term.