Mortgage – how to calculate the loan installment

The amount of the loan installment depends mainly on the amount of capital to be borrowed, the amount of interest, additional fees and the loan period. The exact way of calculating installments depends on whether they will be fixed or decreasing. The easiest way to recalculate is using a special online application.

What determines the amount of the loan installment?

Mortgage loans consist of two parts: capital and interest. The first one includes the borrowed capital, which is only the amount borrowed. The second is the so-called interest, i.e. the remuneration of the financial institution for borrowed capital. In the interest part, interest, margin and commission are taken into account. Often additional credit costs are added, such as insurance against low own contribution or life policy. All these fees affect the amount of the final loan installment. The loan period should also be taken into account – the longer it is, the lower the monthly commitment will be. However, it must be remembered that the total cost of the loan will then be higher.

Equal installments and decreasing installments: how are they counted?

In the case of mortgage loans, there are two types of installments:

• fixed installments, i.e. those in which the sum of the principal and interest is always the same. Initially, the main component of the installment is the interest part, and as the lending expires, the capital part increases;
• decreasing installments, i.e. those in which installments decrease over time. The capital part in decreasing installments is always the same, but the interest is cheaper, which is calculated from the lower and lower indebtedness.

Fixed installments are easier to calculate yourself, because their amount does not change throughout the loan period. In the case of decreasing installments, each subsequent payment must be calculated separately taking into account the lower amount of debt. The most convenient way is to use the repayment schedule prepared by the loan advisor.

Financial advisor – the easiest way to calculate a loan installment

The financial advisory offices are a great facilitation for the borrowers, where they can make a full cost calculation free of charge. These are applications that allow you to calculate the expected amount of equal and decreasing installments and find out what the approximate cost of the entire loan will be. Financial advisors also allow you to quickly compare offers in different banks and select the most advantageous one under the supervision of an expert.

Is it possible to get a loan without leaving home and without having a bank account? It is possible, such a loan is a home loan, known not from today..

It would seem that the home loan is a thing of the past, and yet some of you are still looking for this form of obtaining extra cash. However, this applies mainly to the elderly, who on the one hand do not trust modern electronic methods. On the other hand, they do not have the opportunity to visit the facility in order to complete the formalities related to the loan.

What exactly is a home loan?

This form of lending became popular in our country with the appearance of the Provident company at the beginning of the last decade. To obtain such a loan, you should contact the loan company by phone (currently you can also submit an application via the Internet), which will send an employee to us the same day or the next day. Which directly in the place of our residence will complete all the formalities related to the loan. So we can arrange a specific day and a specific time of visit and the necessary cash will be delivered directly to your home. The repayment of the loan installment is made not by a bank transfer, as is the case with bank loans or payday loans, and directly at our place of residence. At a previously agreed date, the employee of the loan company will come to us and receive each subsequent installment of the loan. Most home loans are available for repayment in weekly installments.

Higher home loan costs

What you need to know about home loans is much higher. Both compared to cash loans available in the bank or even non-bank loans offered via the internet. In the case of home loans we incur additional costs related to home service. And so both for providing us with cash to the place of residence as well as for receiving each installment of a loan with us at home. The cost of such a loan is usually the second as much as the amount borrowed, so if you borrow 1000 PLN to be repaid, we can have 2000 zlotys, if we want to borrow 2000 zlotys, even 4000 zlotys, etc.

PROVIDENT

This company is undoubtedly the oldest company operating on the domestic market offering home loans. Although currently the company’s offer also includes modern forms of obtaining cash, available entirely through Internet channels, the home loan is still available in their offer. This proposal can be used by both young people from the age of 18, as well as seniors who rarely drop their places of residence. Home loans in the Providence include loans from PLN 300 to even PLN 15,000, with a repayment period in a weekly cycle from 30 to 90 weeks.

BUSINESS LOANS

The company which mainly specialized in home loans and so far had an offer very similar to the Provident offer. Currently, the company’s offer includes home delivery loans from PLN 500 with a repayment period of 25, 35, 44, 52 and 62 weeks. Loans are granted to adults aged 18 to 75 years. With permanent check-in and monthly income, also for self-employed persons and farmers.

Home Credit

Another company that offers a home loan is Home Credit, offering its clients loans from 100 to 10,000 PLN. The loan installments can be repaid in weekly installments from 21 to 75 weeks. The initial decision to grant a loan is given over the phone and the loan may be granted to people aged 18 to 75 whose minimum income is PLN 500 net a month. If we have the right creditworthiness, the day after submitting the application, the company will send to us an employee who will write a contract with us on the spot and give us cash.

EuroCreditend

The last of the companies presented today is EuroCreditend. The company which, like all names today, serves clients throughout Poland. In their offer, we can find home loans from PLN 100 to PLN 10,000 with repayment periods in a weekly cycle from 21 to 72 weeks. A home loan is available for adults who can testify their income by presenting a certificate of income.

Giro check – a loan to be picked up at the post office

Another loan proposal may be a loan that we will not receive either to your bank account or be delivered to your home. On the other hand, it will reach the nearest post office, where we can pick it up. Such a solution has a much greater advantage than home loans, because the cost of a loan in such a case may be lower. Provided that we choose the right company that does not exaggerate with high loan costs. And you must know that we do not incur any additional fees for the option of delivering a loan to the post office. I had the opportunity to discuss the subject of such loans in an article describing loans without a bank account. You will be able to read in it with additional information about loans using the Giro check. As well as get to know specific companies in which it is possible to obtain such a loan.

The loan we will reach through the loan company should be easily and quickly available and cheap to pay. Today I look at companies that can offer us the cheapest installment loan, and also without leaving home.

When looking for an installment loan, we have a choice of those available through the bank, as well as those offered by loan companies. Although these banks may have lower installments, on the other hand, these non-bank ones will be more easily available. Therefore, my task today is to find loan companies, in the offer of which the cheapest installment loan is available with formalities settled 100% online.

At one time, and it was a few years ago, I had the opportunity to publish a similar article on cheap non-bank loans. Has a lot changed since its publication? Which companies are currently able to offer us the best terms for borrowing extra cash? This is what I decided to check for you today.

Of course, to find such the cheapest installment loans was possible, it is necessary to set specific criteria that we will be guided by our search. So I decided that the main determinant would be the loan amount in the amount of PLN 5,000 with a 12-month repayment period. This will be our main determinant in looking for a cheap loan with monthly installments. We will check which company is able to offer us the lowest installment installment payment.

The cheapest installment loan – 5 companies with the lowest installment

In the case of the first company there will be no special surprise. Zenga is a company that has to offer the lowest cost of installment loans from today. Not only that other companies are far from being in line with the Wongi offer in terms of costs, it can also be said that the company is also stomping on the heels of banks recently. If you check the real costs of Internet loans in several popular banks and then compare them with the Wongi offer, it surely turns out that the amount of loan installments is very similar. What’s more, the company has recently strengthened its offer, which I had the opportunity to inform a few weeks ago. Currently, the company can offer us cash loans in the amount of up to PLN 20,000 with a repayment period of up to 60 months. A promotional offer for new customers is still available in the company’s offer, under which the first loan for 60 days will be given for only PLN 10.

The requirements for obtaining a loan are not particularly large. You must be 18 or older, have current employment or other income (activity, pension, pension) and do not have any debts or delays in repayment on your account.

I have not found a cheaper installment loan in Zenga, unfortunately, in any other company. However, if you are still interested in the cheapest installment loan, then the second company you should check is Carriedo. The company has also been operating for a long time on the online loan market. The amount of the loan installment compared to the Wongi proposal differs significantly, but on the other hand, apart from Wong, I did not find a cheap loan offer. The Carriedo company is able to borrow us up to PLN 10,000 with a repayment period of up to 24 months. The requirements are very similar to the predecessor’s proposal. It is necessary to be over 18 years of age and to have receipts to repay the loan installment. At the same time, you can not have debts that would be visible in such databases as BIK or debtors’ databases. It is worth adding that in the case of Carriedo loans, it is not required to transfer the verification fee from the bank account.

Lapuda Cash is another proposal for the cheapest installment loan. However, this offer is definitely different from all loan offers presented here. While 4 of the companies presented today provide traditional cash loans, and in their case are not required additional guarantors or mortgage collateral, in the case of Lapuda the situation looks a bit different. In order to get a loan in the company, it is necessary to have an additional person who will be the guarantor of the loan and, specifically, will be its guarantor. This is due to the fact that the company specializes mainly in providing loans to indebted persons. Hence, additional requirements for borrowers. In this case, it is not necessary to have a good credit history or a clean account in the debtors’ databases. What is required is a person who will guarantee the loan, and therefore someone who will be responsible for repaying the loan at the time the main borrower does not pay the loan installments in a timely manner. The current offer of Lapuda Cash is an installment loan of up to PLN 25,000 with a repayment period of 12 to 48 months.

You will have to prepare for a slightly larger loan installment if you submit a loan application in one of the next two companies. truloan may not be able to offer us the lowest loan installment, but it has other advantages that are worth mentioning here. Above all, a great convenience for this offer is very fast customer service. What’s more, the company does not require any income or employment certificates from us. It is not required even for larger amounts and currently the company provides loans up to PLN 10,000. truloan can verify the income we have from the machine thanks to the application that will automatically connect to our bank account. Another significant plus is the large acceptance of loan applications that are filed in the company. The basic condition for obtaining a loan is to have been over 21 years of age and no information about debts in the debtors’ databases and in the Credit Information Bureau.

Very close costs to loans truloan also has a OK loan. Maybe it is not the cheapest installment loan, but it is certainly one of the cheapest if you consider the offers of non-banking loans. The company can offer us installments entirely online via up to PLN 7,000. Alone, he can indicate the loan repayment period in the range from 6 to 30 monthly installments. The company has slightly higher requirements in terms of the age of the borrower because in order to apply for a loan in a company, we should be at least 25 years of age. In addition, you must have a permanent source of income, a permanent place of residence and do not have negative credit history in databases. An OK loan may give us a loan even if we repay a loan at the bank. This will not be an obstacle on the way to obtaining a loan.

If we think about borrowing more money, then the mortgage loan will definitely be the most advantageous solution. Provided that we have a property in the form of a house or flat.

A mortgage loan is a favorable and popular form of crediting, secured by a mortgage on real estate with a land and mortgage register. We do not find loans for a cheaper product, maybe with the exception of a mortgage loan, but the main difference between a mortgage loan and a mortgage loan is that we can only use a mortgage for the construction, purchase or renovation of real estate. However, in the case of a mortgage loan, the borrower has full freedom to use it.

We can devote a mortgage loan to either buy a car, buy equipment for home, vacation or any other purpose. Often, borrowers use the funds obtained as part of a mortgage loan to consolidate other, much more expensive loans. This is because mortgage loans are rather low-interest, compared to other loan products, such as consumer loans or consolidation loans, the interest rate on the mortgage loan (about 7%) is three times lower.

Mortgage loan – the cheapest method of financing?

A mortgage loan is definitely the cheapest loan for any expenses. Installment in the case of a mortgage loan is even by half lower than the installment of a cash loan. People who need money often do not take the mortgage option into account. They do not remember that there is such a possibility, and yet a mortgage loan is the best idea to borrow a larger amount of money from the bank without translating, for which we need this money. Recommendation T in 2011 introduced restrictions on the calculation of the creditworthiness of borrowers applying for mortgage loans. According to the recommendations, the credit burden of people whose earnings are lower than the national average can not be higher than half of the income. The more affluent individuals may spend up to 65% of net income on credit commitments. The effect of these recommendations is that many people simply do not have credit worthiness at the moment. However, those who have creditworthiness, it turns out that it is still too low. A mortgage loan allows you to consolidate existing loans and pay lower installments. Savings in the case of a mortgage loan are much larger than in the case of a consolidation loan.

Real estate loan

The basic requirement that must be met to obtain a mortgage is to have a property that we will be able to pledge in the bank. A real estate can be a house, flat, plot. The real estate must have an unpaid mortgage. Rather, banks do not agree to the next entry in the mortgage, unless their entry is listed first in the land and mortgage register. Secondly, when applying for a mortgage, we must be aware that we will not get a loan for the entire value of our property. Banks borrow from 50 to a maximum of 80% of the property price. Different banks approach the minimum loan amount differently. Most often, however, banks grant mortgage loans of 20,000. zł.

As for the interest rate, mortgage loans have only 1-2 points. percent. higher interest rates than home loans. In this way, we can borrow money from the bank at 8-10% per annum. This is an interest rate much lower than in the case of cash loans. Apart from the low interest rate, the mortgage loan also creates the possibility of repayment for a long period of time, typically 20-25 years.  Banks, however, set conditions for the age of borrowers, they wish to complete the repayment period before 70-75 years of age.

It is worth noting that a long repayment period is certainly a comfortable solution. Even if we take out a short-term mortgage loan and unexpected financial problems arise, we can always apply for an extension of the repayment period, and hence a lowering of the installment. Cash loans and installment loans do not offer such opportunities. A car loan can also be repaid for a maximum of 10 years. The account loan is an annual renewal of the contract.

Does the mortgage loan have any drawbacks?

The mortgage loan has some drawbacks. It is necessary, as we already know, real estate, but also we are expecting expenses that we do not have taking consumer loans. So here we have a variable commission, mandatory insurance, insurance of the missing contribution on time for the entry of the mortgage into the land and mortgage register. At Bank Millenial, we have about PLN 83 of these costs monthly, and PLN 65 at Credit Bank. You also need to spend about 100 zlotys to set up a mortgage by the bank, 200 zlotys to enter a mortgage, sometimes we also bear the costs of a notary’s fee. Sometimes, you have to pay several hundred zlotys for the valuation of real estate. The initial costs are, therefore, without commission, around PLN 1,000. A mortgage loan also means longer and more complicated formalities. It is not worth having fun in it, if we apply for a small amount, but if you are interested in the amount of several thousand, it is good to consider the option of a mortgage loan. The list of expenses must also increase with the insurance of the real estate that we want to pledge. Even if we have not insured it so far, we should start now. For example, a property worth 300,000 PLN zł. means an annual policy of PLN 100-300. Some banks also require to pay a premium for life insurance for each installment.

Online loans are a form of financing which can only be accessed through the web channel and have the distinction of being cheaper than the traditional channel. Convenience depends on many factors and ranges from the conquest of new market shares by the online bank to customer loyalty for traditional banks. Respectively, the first ones are present with their organization only online, so that not having costs of structure and staff are able to guarantee advantageous conditions.

The latter, on the other hand, offer products that are dedicated and managed only online, thus giving up assistance in the branch . Both methods of financing give the opportunity to comfortably manage the practice from home without neglecting, the possibility of receiving virtual assistance and the possibility of being able to compare the various opportunities on the market. All just a click away.

How do they get?

Online loans can be distinguished by type of customer . For convenience we group potential customers in two distinct macro classes in individuals and companies. We focus on loans granted to individuals. In this macro category we further distinguish consumer credit from personal loans. In the online consumer credit we find the following types of products:

1. personal loans;
2. assignments of the fifth;
3. credit cards;

Personal loans among which we distinguish instead:

• loans for restructuring ;
• loans for medical expenses ;
• loans for the purchase of cars or motorcycles ;
• liquidity loans;
• loans for different kinds and so on.

Whatever type of loan it is necessary to know the requisites necessary for the supply to be possible. In general, the minimum requirements for obtaining online funding can be summarized as follows:

• age of between 18 and 70 years;
• demonstrable income from payroll and income tax return;
• residence in the Italian territory;
• current account presence generally of a banking nature.

The loan will be carried out, following a preliminary investigation, based on the client’s reliability assessment

The greater the creditworthiness of the applicant and the higher the probability that the loan will be paid out. In addition to reliability, the disbursing institution will also assess internal risk policies, essentially considering the statistical data in its possession called in the technical jargon of credit scoring. Data reliance is particularly useful for keeping the risk of insolvency under control. The reliability of the customer is evaluated by consulting the data received from the CRIF risk center, which records both the missed payments and their late repayment.

In addition to the minimum requirements, it is possible that the bank or the financial institution dealing with the loan can ask for additional guarantees . Generally they are required for some types of loans, for important amounts and to limit the risk of insolvency. Among the possible additional guarantees we distinguish the real ones represented for example by mortgages, the co-obliged ones, that is the intervention of a third person who takes care, in case of non-payment, to honor the debt and finally the insurance coverage.

Whatever loan you are going to request is good to make a comparison with what is proposed on line pay maximum attention to both the reimbursement rates that will be applied to the penalties in case of failure to timely repayment of the same without neglecting the mode of withdrawal and early extinction. Generally penalties and recess are not taken into consideration but a careful reading of the contractual clauses can make sure to avoid being harnessed in contracts that are unclear and transparent.

The online loan can be requested quietly, verified the minimum requirements , filling out appropriate forums on the web by filling in all the fields related to personal data and economic data. The web system will analyze the basic data entered and will carry out a preliminary investigation following which specific documentation will be required for the improvement of the practice itself.