How to use the HelpMyCash mortgage simulator
Contracting a mortgage is one of the most important decisions in the life of any person, as it commits you to pay a considerable amount of money each month and for a period of time that, in the best of cases, will last a few 10 years. Before taking the step, it is essential to calculate the value of the monthly installments that you are willing to pay for your mortgage loan. Our mortgage simulator provides you with this information so that you can make a realistic decision that best suits your personal situation. It will also allow you:
- Calculate if you can afford the house you want. If you know how much the mortgage will cost you with which you will finance the purchase of the home you want, you will be able to do numbers to check if, indeed, you can afford to pay it.
- Calculate the mortgage of several banks and compare their price. With our mortgage simulator you can repeat the process of calculating the mortgage as many times as you want. just enter different values and adjust. In this way, you will be able to know which entity offers you the best mortgage, adjusted to your financial situation.
- Ask for help from a mortgage broker. We put at your disposal, without any commitment, a mortgage broker or intermediary service that will analyze your profile and help you find the best mortgage.
Calculate what house you can afford
If you have come to our mortgage simulator, it is because you want to calculate the mortgage that you can afford. But before that, we advise you to calculate what house you can afford. In this way, you will be able to find a home that fits your economic possibilities and you will increase your chances of getting the best mortgage.
To find out what home you can buy, you must make two calculations: one to find out the maximum amount you can pay each month and another to discover the maximum amount that the mortgage can have.
Calculate the mortgage you can afford
According to the Finanzas Para Todos portal, the installment of your mortgage loan, added to that of the other credits you may have, should not exceed 35% of your monthly net income. This is the formula you have to use to find out what maximum payment your mortgage can have based on your salary:
Maximum installment = 0.35 x Net monthly salary – Monthly installments of other credits
For example, let’s say you earn a net salary of 2,000 euros per month and pay 200 euros per month for your car loan. After using this formula, the result tells us that you can afford a mortgage with a maximum installment of 500 euros per month.
Calculate how much money they will give you as a mortgage
Now that you know the maximum amount you can pay, you have to discover how much you can borrow from the bank. As a general rule, the mortgage they grant you will cover up to a maximum of 80% of the purchase and you will have to assume the remaining 20% (the down payment). There are banks that can grant you mortgages of more than 80% if your economic situation is very good, but it is not usual.
Therefore, in most cases you will need to have savings to pay 20% of the price of the house plus an additional 10% for the cost of deeding. In total, 30%. This is the formula you have to use to calculate what house you can afford:
Maximum house price = Savings you have / 0.3
For example, if you have 45,000 euros saved, you can buy a home for up to 150,000 euros with a maximum mortgage of 120,000 euros.
How to choose the best mortgage?
Calculating the mortgage is one thing and another thing is knowing which one is best for you within the huge number of offers offered by banks. To help you find the best mortgage adjusted to your financing needs, there is the figure of the mortgage broker or intermediary, professionals specialized in obtaining personalized mortgages for their clients.
At HelpMyCash we work with several intermediation agencies that, in addition to looking for the best mortgage loan, will negotiate with banks to get you better conditions than you would get on your own. Click on the button below and find out about our service without any commitment. We tell you from now on that, depending on the difficulty of your case and the support you want to receive, we will assign you a free or paid broker. Talk to them and decide if what they offer is worth it.
Calculate the total cost of a mortgage: interest, commissions…
Our mortgage simulator helps you calculate the installment of your loan. Now, if you want to know how much you will pay in total if you contract one of these products, you must also calculate each and every one of the expenses associated with this operation. Next, we explain what these expenses are and how you can find out their cost:
- Interest: is what the bank charges you for lending you the money for the mortgage. The lower it is, the cheaper the fees you will pay.
- Commissions: these are charges that the bank can charge you for the management of the contract and for other operations. The ideal is to look for mortgages without commissions so as not to have to pay them or negotiate with the entity so that they are not included in the contract.
- Bonus products: these are products that are contracted to reduce the interest on the mortgage. Depending on the policy of each bank, they can be insurance, credit cards, pension plans, etc. It is important that you calculate how much you will pay for them and that you weigh whether it is worth hiring them or not.
- Mortgage and purchase expenses: these are the expenses and taxes associated with the deed and registration of the mortgage loan and the transfer of the home. Its cost is usually equivalent to 10% of the price of the property.
Our mortgage simulator tells you how much you will pay in interest and in mortgage and sale expenses. If you want to know what the bank will charge you for commissions and bonus products, ask them to tell you their cost (it is obliged to do so). Thus, you can calculate what the mortgage loan will cost you in total.