Getting a financial loan is very normal. Especially with large purchases, a loan is often a godsend. Just think about buying a car or a house. That is not an amount that you have on
Getting a financial loan is very normal. Especially with large purchases, a loan is often a godsend.
Just think about buying a car or a house. That is not an amount that you have on your account. That’s where a loan comes in handy. It is also not bad to borrow, if you only know what it costs and you can pay the costs.
Why calculate interest?
Interest is paid for every financial loan. That is the earnings model of the bank or financial institution where you borrow the money. Logical, because they run the risk of lending the money to you. The costs for lending the money, they charge you. This interest rate differs quite a bit between the various providers. It is important to know what the costs are per month before you start your loan. So you know what the loan you are going to cost per month and you can determine whether you can bear these costs. Calculating the interest is often not easy. There are several websites where you can see at one glance the costs of the loan.
Request more offers, certainly do it!
It often sounds complicated, but it certainly is not! Request multiple quotations for your intended loan. This gives you a good insight into the providers and the costs that are calculated. I can already tell you that there will be significant differences between the providers. Here you can also look and compare on the internet. There are several websites on which you can easily request a quote from multiple providers. This is completely free of charge and gives you easy insight into the market. You can then make a well-considered choice for a provider that fits your situation. Also keep in mind that interest is only one part of the offer. The small print often give other insights, read this well.
Loans are available in various types and sizes. In the overview below a number are included:
- credit, loan of money that you can use for anything
- Mortgage, loan specifically for the purchase of a house
- Annuity mortgage, form of mortgage loan
- Linear mortgage, form of mortgage loan
For all loans, these must ultimately be repaid in a certain period. By this we mean that the entire amount has to be returned to the lender. Do you want to calculate the costs of your loan with or without repayments? Then you can easily do that here . There are also handy Excel examples that you can use to calculate your situation.
Avoid unpleasant monthly surprises
Surprises are fun, at least if they are to your advantage. Financial surprises that you have not planned are certainly not fun. So make sure you know for sure that the monthly interest costs are not a problem for your financial situation. Calculate the costs of your loan and get the costs of your monthly income, is there enough left? Then you can start the loan with peace of mind, but pay attention to your financial situation may change in the future. So make sure that you can continue to pay the costs if your income becomes less, for example. The magic word remains the calculation of the costs, not only from the calculation of the lender. Calculate the costs yourself, do you pay the same amount? Very well, you can always say that you have calculated it yourself and you are not faced with unpleasant surprises. For each loan applies, borrowed considered and never maximal!