Need to know what mortgage you can afford? The solution is to use a mortgage calculator to do the math.
The best mortgage loan calculators are able to tell you the amount of the loan and even the house you will be able to buy. That is precisely what the Mortgage Simulator does.
This mortgage calculator starts with the loan, not the house. This way, you'll have a clear budget before you start looking, or you can set more realistic goals if you're already doing so.
Let's see how it works and what data you need to provide!
Personal situation
To know what mortgage you can get, we start with two key personal details: how many people are going to sign the mortgage and whether you have people in your care .
Adding more than one holder with their own income to the mortgage is always positive. On the one hand, it means you can borrow more money because your income is higher. On the other hand, it reduces the risk of default as there are two different sources of income.
What about your dependents? Knowing the number of family members helps you better calculate what your monthly expenses might be. This will help you better adjust the amount of mortgage you can afford.
Your employment situation
Permanent contract, temporary contract, self-employed... We're nosy! In this section you have to tell us what your employment situation is.
Thanks to it, we will be able to know how stable your income is, among other things.
How old are you
We know that this question may raise suspicions, but no, we don't ask it because we are very nosy.
Knowing your age allows you to adjust the term of the loan . In other words, the number of years the mortgage will last.
What is your income?
This section is key. To make it very easy for you, you just need to tell us how much you earn per month (the money that reaches your account) and how many payments you receive per year.
As you've probably already guessed, the higher your salary, the larger the loan you can access. It's that simple.
Are you paying any other loans?
This is a standard question, as they say. If you have other debts, we only need to know the total amount.
This information helps you know what your debt level is and can adjust your mortgage loan accordingly. This way, you can make sure that your loans do not put an excessive burden on your finances. After all, a good mortgage should be a source of joy, not worry.
With this information, the mortgage calculator will go to work and you will know what house you can buy, among other things.
What can you find out with a mortgage calculator?
A good mortgage calculator will help you figure out how much money you can borrow and much more. You'll also find out how much house you can afford and even be able to play around with the numbers based on the initial capital you put down.
Are there other mortgage calculators?
Of course! The Bank of Spain itself has a tool that can help you and that takes into account other factors such as the interest rate of the loan or the years of amortization.
Its focus is more on how much you will pay on your mortgage than on the mortgage you can get. Depending on what you are looking for, it can be a good complement to the mortgage calculator.