Buying a home is one of the most important financial decisions in a person’s life. For most people, this means assuming something. housing loan It may take several decades. When considering such a commitment, it is important to be well informed and clear about how much will be paid monthly, how much will be allocated to interest or what the total cost of the loan will be, among other factors.
Just like I told you here INFORMATIONAccording to the Valuation Society (ST), houses became 3.7% more expensive in September compared to the previous year; This rate increased by 1.7% in the half-year to 1,835 Euro/m². These data show that prices continue to increase in a more controlled manner.
In absolute values, the Community of Madrid continues to lead the highest prices (2,905 Euro/m²); This is followed by Catalonia (2,542 euro/m²) and the Balearic Islands (2,488 euro/m²). At the other extreme is Extremadura with the lowest price (945 Euros) and also has the only autonomy that does not exceed the 1,000 Euro/m² limit.
In this context, simulators mortgagessuch as those provided by Spanish Mortgage Association (AHE)They are presented as indispensable tools.
How to simulate your mortgage
As we read on the AHE website, thanks to the simulator you will be able to know:
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conditions your mortgage loan
- Compare multiple products having similar or approximate characteristics
- Reflect the behavior of your mortgage loan In an economic scenario different from the current scenario
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Estimate its possible limits change of monthly installments based on the historical behavior of reference indices.
So, the steps to follow are:
1. Access to the simulator. To get started, you must access the official page of the Spanish Mortgage Association. Once there, enter the ‘Mortgage simulator’ located a little further down.
2. Enter basic information. The first step in the simulation will be to provide basic data about the loan you want to simulate:
- Amount to be financed: The total amount you want to borrow.
- Repayment period: The number of years or months in which the loan will be repaid.
- Type of interest: It can be a fixed or variable interest rate. If you choose the variant, the simulator may ask you for the spread plus the reference index (such as EURIBOR).
3.Then press the calculate fee button and you will receive the monthly fee amount you have to pay.
It is recommended to play with different scenarios. For example, what if you chose a period of 20 years instead of 30 years? What happens if the interest rate increases by one point? This will help you understand how your payments and the total cost of the loan vary under different circumstances.
The AHE mortgage simulator is a powerful tool that allows you to better understand the impact of mortgage lending on your personal economy. By mastering its use, you will be in a better position to make informed decisions and choose the mortgage that best suits your needs and possibilities.