What costs the most to own a home? The soil, the shell or the establishment? None of this. The most expensive is the money that must borrow nearly every home buyer of a bank. But how much it will cost if you want to invest in their own four walls? And what assurances do you need a loan?
Let the cost of financing out of consideration, it is clear that despite all the doom and gloom in the housing market, the price to buy a property in the year 2010 still increased by 0.5% compared to 2009. The average purchase price of a existing home thus came in 2010 at 239 500 euro.
It was the most expensive homes in the province of Utrecht, the cheapest in the province of Groningen. But as already mentioned, the financing is by far the highest cost item when purchasing a home. But why is that so?
Financing a house costs over the entire life seen a capital interest. Who a loan ?? 200.000, - receives 5% and in equal monthly installments from ?? 1000 pays off, it is not the end ?? 200.000, - lost but paid more than double, such a sloppy ?? 440.000, - whose ?? 240 000 - interest. Is that really necessary? Below an impression of the dangers and pitfalls of a mortgage. You will also find useful tips for the interview at the bank.
Is the financing of home ownership really that expensive? The simple answer for anyone who is not extremely much deserves and has not won or inherited the grand prize, is "yes." The high mortgage is the price one pays for construction or purchase of a house to borrow a large sum of money. And the lenders, in fact, savers who have entrusted their money to the bank, are willing with that interest not only to hedge against inflation and a possible bankruptcy of the debtor. They also want to be rewarded for that they should be years and years of consumptive use of their savings.
For you as a borrower is, however, all is not as dramatic as it sounds. Your payments are spread over a long period of usually 30 years. And you do not pay any rent for it would indeed achieve a comparable size. And although you in all these years brings the same amount monthly to the bank, this is actually getting smaller. Firstly, inflation reduces the weight of debt, one of the few benefits of this phenomenon. In second place are in your monthly payment on a conventional financing for an ever smaller part interest rates and an increasing proportion of repayment, which is beneficial for you, you earn interest, and what you have less measure of financial capability, you also have less guilt so more in assets in real estate.
Finding affordable housing stands or falls with the right financing. A few decimal points can sometimes have more influence on the total cost, the difference between a luxury or a simple design. A thorough financial analysis therefore belongs in the initial phase of any construction project or purchase consideration. When the analysis is all about how much your dream home may cost up. There are in this connection two essential variables that you must consider:
the height of your own capital;
maximum monthly payment.
The core of almost every real estate, the mortgage loan at a bank, even if it receives the money does not always directly from the bank but often through an intermediary.
A classic mortgage is characterized by the following principles:
The interest rate is fixed for a certain period of time, such as five, ten or fifteen years;
During this period, you always pay the same fixed monthly period;
These periods consist partly of interest and partly of repayment;
Both components are due at the beginning of the month;
If the fixed rate period is over, the credit is usually extended at the current rate;
That prevailing interest rates may be lower but also significantly higher than the previous one, and thus the monthly installments.
With spot as cheapest mortgage over the period starting from the year 2000 is subject to the mortgage with. This is somewhat understandable because banks must join a mortgage fixed rate often for periods of 10 years or more to hedge against the interest rate risks they run. And before you bring a hefty risk premium charged.
Essential for your loan is the monthly payment. Of course you can afford a higher monthly payment if you limit your consumption and for example in the coming years to spend your holiday in your own backyard rather than on Mallorca.
In theory, your monthly payment could be as high as you can afford them from your income without having to starve, but that is not wise. You should not be tight calculate this because in your spending pattern can always be unpleasant surprises, such as energy suddenly explode or if your new house is somewhat secluded and your family suddenly need an extra car.
Determine the maximum amount you can spend per month for refund, then orient you about the current rates. Go prudent 1/2% are higher than the lowest rate found for the best deals usually only used by banks for their most solid customers. Ready-made tables show you how high your loan may be suitable for you in the interest and redemption. For example, anyone ?? 1000 monthly at its disposal, may, by a rate of 5% to ?? 200 000 loan from the bank.
According to a study Vereniging Eigen house in August 2011 published is the owner of a home per month on average ?? 400, - maintenance spend. And that is much more than the government would have us believe.