Mortgage Credit Simulator in Peru
Thanks to a mortgage loan, many people can access to buy the land, the house or the apartment they always dreamed of. For some this dream seems distant, but it will not be so much if you have an idea of how much you need to earn a month to allocate a portion of the money to pay the monthly payments of a mortgage. In this note we help you by telling you how a mortgage credit simulator works in Peru.
With this information, you will be able to know what values are taken into account when calculating the payments of this type of loan. In the same way you will know the formula to know the monthly fee and more.
What is ASD and how is it calculated?
TEA stands for Annual Effective Rate and is one of the values that must be taken into account and compared when applying for a mortgage loan. The reason is that this is a fixed value that is charged for a one-year loan.
The SBS published in January this year the ranking of banks that charge lower interest rates, so, for example, the lowest percentage charged is 9.58%. Keep in mind, when choosing a bank for your mortgage loan, the higher the percentage of ASD, the higher the interest you will have to pay.
How to calculate the loan fee?
There are three factors that will help you determine the monthly value of the installments for a mortgage loan, these are:
- The value of the loan requested.
- The number of years you will pay it.
- The interest rate of the financial entity that gave you the loan or credit.
- Bank insurance and commissions.
Example to calculate the monthly installment of a mortgage loan:
If we have a property worth 320 thousand dollars and the bank asks us to have a 10% down payment, this means that we must have 32 thousand dollars saved before applying for a loan. Which means that we will end up requesting a loan for 288,000 dollars .
To know the monthly fee, we must convert the ASD into the effective monthly rate, for that we use the formula:
(1 + ASD) 1/12 -1 = monthly effective rate.
With this result, the following annuity formula should be applied that will help calculate the value of the fee:
Debt value (288,000) = Value of the installment to be paid [[1- (1 + the effective monthly rate) -number of periods] / i]
What does the credit simulator mean?
The formulas mentioned above can be somewhat complicated, but they will be the ones that the banks will apply to establish the amount of the installments that will be paid each month for a mortgage. There are other values that those can take into account, such as grace period, exchange rate, etc. The best is to use the simulator of each entity to obtain the nearest figure.
Each bank has its own loan simulator and not all of them offer the same TEA or TCEA, services and commissions, in their offers. This is why a mortgage loan simulator in Peru should be taken as a reference, for the calculation of your monthly installments. In that sense, it will be the bank for which you decide, the one that gives you the real amount when you enter into negotiations with that one.
Among the benefits of using an online loan simulator, are:
- It will allow you to get an idea of the money you will need each month to pay your mortgage credit.
- You will know how much financing you can access based on your income.
- They help you to avoid getting into debt.
- Some even help you get prequalified.
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