Mortgages

Who wants to acquire a real estate, usually needs a favorable loan. The same applies to the construction of your own home. The so-called mortgage loan is an attractive financing option in this respect. The property or land is pledged as security for the loan. This is done by entering a land charge in the land register. Thanks to the secure basis, mortgage loans are usually provided with advantageous conditions for the builder or real estate buyer. In addition, such a loan can be invested on a very long-term basis. Mortgage loans are usually invested as annuity loans, i.e. the repayment rates are consistently high. This is also the assumption of our mortgage calc.

The Mortgage calc allows a variety of calculations for mortgage loans and other annuity loans. Using the input data, the online calc determines the loan amount, the installment amount, the interest rate, the initial repayment, the term, the remaining debt or the annual unscheduled repayment. From the list of input parameters, choose two values to be calculated. You must specify all other key figures. This means that the calc allows very flexible calculations.

The frequency of the installment payment can be selected between monthly, quarterly, half-yearly and yearly, whereby payments are always assumed in arrears. The amount of the installments is kept constant over the entire term, so that the repayment portion increases over time and the interest portion decreases accordingly. In addition to annual unscheduled repayments, which are made at the end of each year, the mortgage calc also allows individual unscheduled repayments of different amounts in any number of months.

The data is also used to create a detailed repayment schedule, in which all payments for interest and repayment as well as unscheduled repayments are clearly displayed. The redemption schedule displays the progress of the debt level and the payments on an annual or monthly basis. For each year or each month, the old debt status, the installment payment with the portions for interest and repayment and the new debt status are named. In addition, the system calculates the effective annual interest rate (internal interest rate), which is important as an important benchmark for various loan offers.

The term mortgage derives from the Greek and is synonymous with “pledge”. A mortgage is a limited right in rem to a property and is therefore a security right over real property. The purpose of mortgages is to secure loans granted in the event that receivables are not serviced as planned by the debtor (guarantor). An essential distinguishing feature from the land charge is the requirement of a personal claim against the debtor.
In general practice, this is a loan to finance a property. The mortgage is changed by every payment by the debtor which discharges the debt. Although the original amount is entered in the land register, in contrast to the land charge, it is not necessarily stable. The actual debt is decisive.


Mortgage 101

A conclusion fee for the loan can also be taken into account, which can either be paid separately when the loan is disbursed or included in the repayment installment. A percentage discount can also be included in the calculation. Both have a direct influence on the effective annual interest rate. In addition, the mortgage calc allows an initial grace period to be taken into account during which the instalment payments are initially suspended.

Interest accrued for this can either lead to an increase in the initial debt and thus to inclusion in the repayment instalment or must be paid separately. If there is still a residual debt at the end of the fixed-interest period, the mortgage calc allows the calculation of an optional follow-up financing up to the complete repayment of the loan with the same instalment amount but a different debit interest rate.