Calculating the mortgage payment is crucial when choosing the best plan for your needs. In order to do this at best, it is necessary to take into account aspects such as the interest rate and the spread.
Mortgage installment: information on the calculation
When calculating the mortgage installment, it is necessary to start from the choice of the interest rate, remembering that in the case of a fixed rate, the amount of the monthly installment remains unchanged during the amortization plan.
The floating rate instead determines both upward and downward changes. By opting for the variable rate with CAP it is possible to take advantage of an installment with all the advantages of the variable rate but without the problem of having to face any interest increases, since there is a maximum ceiling beyond which it is not possible to go.
Calculating the Government Agency mortgage payment: how does it work?
Let’s start talking about calculating the mortgage payment in a concrete way, referring to the Social Institute mortgage plan ex Government Agency. How does this type of mortgage work? With the possibility of requesting up to $ 300,000 for the purchase of the first home.
The Social Institute ex Government Agency mortgage loan is accessible by members of the Unified Management of credit and social benefits and can also be requested for the renovation of the house and for the construction of a garage or a parking space.
The borrower has the possibility to choose between a fixed rate of 2.95% and a variable rate calculated on the basis of the 6-month Euribor increased by 200 basis points and calculated over 360 days.
Fixed rate mortgage payment calculation: here are the best plans
We continue to talk about calculating the mortgage payment giving some information on the best fixed rate plans. Which ones are they? Among the most advantageous, it is undoubtedly possible to remember the mortgage offered by Deutsche Bank.
How does it work? To understand this, let’s assume the choice to request a mortgage of $ 130,000 and the choice of a 20-year amortization plan. In this case, the beneficiary would pay a monthly installment of $ 681.30, with fixed TAN and APR equal to 2.38 and 2.53% respectively.
Calculation of the mortgage payment: the best variable rate plans
Also with regard to variable rate plans it is useful to give some information on the calculation of the mortgage payment. Also in this case we refer to a specific example, always assuming the request of $ 130,000 and an amortization plan lasting 20 years.
If we consider the Best Bank mortgage as a reference, there would be a monthly installment of $ 612.71, with an interest rate calculated on the basis of the 3-month, increased by a spread of 1.50% (APR equal to 1.29%). This plan does not provide for preliminary fees or appraisal costs.