Before venturing to undertake an operation such as the purchase of a home, which entails a significant financial outlay, it is necessary to weigh all the details. Not only about the property, if it meets the ideal conditions, but also what is the best option to obtain the necessary financing to become an owner.
If you choose to request a mortgage from a bank, it will be necessary to decide the type of loan you want to take out. Currently, the range of products available is wide. While in the fixed rate loans The quota remains unchanged, in those that contemplate a variable rate, it is subject to the fluctuations of indicators such as the Euribor.
However, in recent times mortgages such as mixed mortgages have also gained strength, in which during the first years it is customary to pay a fixed interest rate and later they move to a variable rate. One step further goes the dual mortgagein which users can customize which percentage of the monthly payment follows the fixed rate conditions and which follows the variable rate.
The Bank of Spain simulators
To facilitate the choice, the Bank of Spain makes a simulator available to users to calculate the fee of a mortgage or personal loan, which also offers the possibility of making the estimate taking into account whether there is a grace period or early repayment.
At the same time, it allows calculating the Annual Equivalent Rate (APR) of a loan any loan and the effective interest rates, while in the specific case of bank deposits the effective interest rate can be estimated.
The simulator allows you to estimate the installment when there is a grace period or the loan is repaid early
Users can also use the available simulators to calculate the due date of the last installment and the interest paid on a card revolving, as well as knowing they could access the measures contemplated in the Codes of Good Practices and the impact they would have on the mortgage.
For mortgage holders whose reference index disappeared, it allows them to calculate the differential that must be added to the IRPH of the set of entities to know the new index.
How the simulator works
To use the simulator, Users must access the banking supervisor’s website and enter the amount, term and interest rate into the tool to obtain the mortgage loan installment to be disbursed.
It should be noted, as the Bank of Spain emphasizes, that if the type of interest Throughout the period in which the loan is being returned to the financial institution, the new installment can also be calculated.
The user obtains the installment after entering the amount, the term and the interest rate. Photo: Bank of Spain.
Users can perform several simulations and, after clicking on “see details”have the possibility of accessing the graphic representation of the different options, the amortization tables and their download in Excel and PDF.
One factor to take into account is that the simulator is designed only for loans that are amortized through the french systemin which the installments to be disbursed are the same every month, as long as the interest rate is maintained.
In order that the simulator can be applied to the greatest number of cases possible, the calculations are carried out some simplifications like the following:
- Payments are monthly
- All months of the year have the same number of days
- The payment to the bank of the amount intended to partially amortize the loan is made just one month before the payment of the first installment with the new conditions that result from early amortization.
Due to these simplifications, the amount of the new fee or the number of installments obtained with the simulator, may vary with respect to those of the loan, although the differences should be small.
2024-04-12 15:35:23
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