Choosing a Home Loan (mortgage) requires a special strategy. Not just choosing a house, seeing the developer, and signing the sale and purchase contract and mortgage. With repayments that are generally quite long, around 10 to 15 years, you should know important things before you choose a mortgage and enter into a credit agreement. On the other hand, if you also want to calculate your PMI carefully, we recommend you to use the best pmi calculator.
For those of you who want to buy a home in the mortgage, it helps you know in advance what should be your consideration, such as:
The amount of the credit ceiling
The first thing you should consider before calculating a mortgage simulation and applying for it is about the amount of the credit ceiling. Find information on how much funds you need to make it easy for you to choose the right bank, what is the loan limit or ceiling provided by the bank.
Remember, do not immediately be tempted to choose low-interest rates. Make sure you know how to calculate interest rates before deciding to choose a mortgage (flat, annuity, effective). Ask the first installment simulation table that shows the number of your monthly repayments and the interest rate system used.
Is the interest rate fixed (Fix) or a floating interest rate (Floating). Fixed interest rate (Fix) is the interest rate that is pegged at a certain level during the credit period. Whereas the floating interest rate is an interest rate based on interest rates on the domestic and international money markets.
You should choose an effective interest rate so that your credit burden is lighter. A full explanation of the differences in bank interest rates, here.
Mortgage loan period
The majority of banks will provide a mortgage loan period up to a maximum of 15 years, but some are up to 20 years. If you extend the credit tenor, you can reduce the number of installments that you have to pay each month. You should borrow with a tenor that is not too, around 5-8 years if your income is sufficient.