Do you want to buy a new home, or are you planning to transfer your mortgage loan? Then it is nice to know how high the monthly amount for the mortgage loan is. How does the mortgage loan provider calculate the mortgage loan monthly payments? We answer this and other questions about the monthly costs for a mortgage loan.
Monthly mortgage loan payments calculated by mortgage loan lender
The mortgage loan form is a large factor that determines the mortgage loan monthly payments, because the monthly payment is different for each mortgage loan type. The mortgage loan monthly payments are determined on the basis of the following components:
- The repayment
- The mortgage loan rate
- Possible insurance premiums
If you take out a new mortgage loan for the first time, this must be at least a linear or annuity mortgage loan . With these forms you pay off the mortgage loan during the term. The mortgage loan monthly payments therefore consist of at least the repayment. In the past , it was possible to take out other forms of mortgage loan, where there was no immediate repayment.
Monthly charges linear mortgage loan
In the case of a linear mortgage loan, the monthly payments consist of 2 parts: the repayment and the mortgage loan interest. The redemption part is calculated by dividing the mortgage loan amount by the number of repayments. Do you, for example, have a mortgage loan of € 200,000? Then you pay € 555.55 each month in repayments (€ 200,000 / 360 repayments). The mortgage loan interest is calculated on the mortgage loan amount that has not yet been repaid. This part is getting smaller every month, because you pay off monthly. At the beginning, you pay more mortgage loan interest than at the end of the mortgage loan. With this form of mortgage loan you can use the mortgage loan interest deduction. Because you are paying less and less interest, the tax refund also becomes less during the term.
Lunar loads annuities mortgage loan
With the annuity mortgage loan, the mortgage loan monthly payments remain the same for the entire term, apart from interest rate changes. The structure of the monthly costs will change. In the beginning, you pay a lot of interest and you do not pay much off. At the end of the term, that is the other way around: you pay little interest and you pay a lot less. Because you are paying less and less interest you can also deduct less mortgage loan interest from the tax. This ensures that net monthly expenses increase during the term.
mortgage loan monthly payments interest-only mortgage loan
Have you taken out a interest-only mortgage loan in the past? Then you do not dissolve during the term. Only at the end of the term you must be able to pay the entire amount. That is why your mortgage loan monthly payments do not consist of the repayment, but the interest and insurance premiums. Because you do not pay off, the interest amount remains the same during the term unless you have opted for a variable interest or your fixed interest period has expired. With this form of mortgage loan, no capital is accrued, so repaying at the end of the term must be done by selling the house or by saving money. Have you taken out an interest-only mortgage loan for January 2013? Then you can transfer or convert the mortgage loan without losing the right to mortgage loan interest deduction.
Monthly amount for a savings mortgage loan
Have you taken out a savings mortgage loan in the past? Then no repayments are made during the term. The premium consists of two parts: the savings part and a life risk part. The savings part is deposited into a blocked savings account, so that you can repay the mortgage loan at the end of the term. The mortality risk component ensures that you build up a capital so that, if you die prematurely, the mortgage loan can be (partially) repaid.
The mortgage loan rate
The mortgage loan interest also has a big influence on the monthly amount for the mortgage loan. You pay more interest on a higher mortgage loan amount than with a low mortgage loan amount. In addition, the interest amount depends on the interest rate that you take out. Do you finish a variable mortgage loan rate? Then you benefit from this if the interest rates are low. However, if the interest rates rise, your expenses will also become higher. If you set the interest rate for a period, the longer the period you fix the interest rate, the higher the interest rate.
Tax refund interest
Fortunately, in some cases you can also get money back on the paid mortgage loan interest. This by means of the mortgage loan interest deduction. The exact amount you will receive depends on the tax bracket in which your income falls. This ensures that your monthly expenses will ultimately be lower. As mentioned earlier, if you take out a new mortgage loan now, you can only use the mortgage loan interest deduction if you opt for a linear or annuities mortgage loan.
Possible insurance premiums
Often a mortgage loan provider wants you to take out life insurance, home insurance and unemployment insurance when you take out a mortgage loan. These insurances ensure that, if you die, become unemployed or incapacitated for work, you accrue a capital through the premiums paid to (partially) settle the mortgage loan. The monthly costs also consist of the premiums for these insurances.
Net and gross monthly mortgage loan amount
The gross monthly amount is the amount that you pay monthly to the mortgage loan provider. These are the monthly mortgage loan payments without the refund of tax. As discussed earlier, in some cases you can use the mortgage loan interest deduction. As a result, you will receive a part from the tax authorities about the mortgage loan interest paid. The annual benefit is recalculated to the benefit you have on a monthly basis. The net mortgage loan monthly payments are the gross monthly costs minus the monthly tax benefit. The net mortgage loan monthly payments are low at an annuity mortgage loan at the start, because you do not pay much in the beginning. The net monthly expenses rise during the term.
Let an independent mortgage loan advisor calculate the mortgage loan monthly payments
On various sites you can have a global calculation made of the maximum mortgage loan you can obtain and a calculation of the mortgage loan monthly payments. These sites provide a good overall picture of the maximum mortgage loan with tools, but your future wishes and fixed costs are not taken into account. An independent mortgage loan advisor does take this into account. You can discuss your future plans together with the consultant, for example your desire to have children or your plan to work less later. This gives the advisor a good idea of the possibilities, you can give advice and calculate the mortgage loan monthly costs for you. Request an introductory mortgage loan interview here.