General information on mortgage simulationOn January 21, 2020 by admin
The simulation is recommended by professionals and former borrowers, because they think it is the most suitable tool to obtain all the information related to offer comparisons on the net. Moreover, it is also a way to move forward safely towards the other steps of applying for mortgage loans. To do the simulation well, the following lines show you some details to take into account!
The advantage of online simulation
The mortgage loan simulation is one of the online simulations that does not commit you to anything. It is a very simple and practical way to compare credit offers. The home loan can very well be simulated on the internet. The main advantage is that you do not need to take significant time or even make an appointment with a banker to be able to act. This online tool also gives you real answers and especially advice based on your request. To have a better home loan, do not hesitate to simulate between 3 to 4 offers before you start signing your contract.
Recurring questions about the loan simulation
Here are some questions to ask before proceeding to a credit simulation:
- What are the terms of my financing?
- Am I eligible for subsidized loans?
- What is the maximum amount I can pay as a monthly payment?
- What is my borrowing capacity?
- What is my purchasing capacity?
- How can I compare two loan offers?
Thanks to a credit simulation, the answers to these questions below will be on your side. Here are the details related to this form of comparison:
- The calculation of the loan at zero rate
To benefit from this rate, you must be one of those who have not owned a home for two years. However, your rights on the PTZ are variable under certain conditions.
- Calculation of borrowing capacity
Borrowing capacity is the difference between the total income and expenses of a household.
- Calculation of the debt ratio
The calculation of this is summarized under the following formula: Total charges / Total income X 100
The result should not exceed 33%.
- Calculation of other costs
These costs include notary fees, administrative fees, travel expenses and others. It is necessary to have an estimate of these before proceeding to the current simulation.
The mortgage simulation
The simulation allows you to find a mortgage loan that meets your historical calculations. It also helps you find the best rate for your credit. You choose through the tool the amount to borrow then the repayment duration. You then simulate your needs and results are displayed based on the details you have entered.
In general, all online simulators have almost the same basic tools. If you change sites to perform other simulations, the process remains the same. This is the result which can be different depending on the data generated.