Buying a house on a mortgage
This is a blog post about mortgages.
Mortgages are loans provided by bank or other parties to you to buy a propriety in return for interest payments on the money loaned to you. Mortgages are typically up to 30 years. Interest rates vary depending on economic conditions and depend mainly on the central bank policy of the region you are buying your property.
Use the calculator below to estimate your payments.
As you can find out yourself the difference of a total interest payment for a 1% interest rate loan versus a 5% interest rate loan on a 30 year period is significant. For the 1% interest loan you have paid about 14% of the total loan amount in interest payments while on the 5% interest loan you have paid almost 50%
Mortgage Calculator
What this calculator does not include
- Down payment — required upfront capital, not modeled here
- Property tax — typically 0.3–1.5% of home value per year depending on your country and municipality
- Home insurance — mandatory in most markets
- Maintenance — rule of thumb: ~1% of home value per year
- Mortgage insurance (PMI/NHG) — required when the down payment is below a certain threshold
- Opportunity cost — the return you forgo on capital tied up in the down payment
Real total cost of ownership is typically 30–50% higher than the monthly mortgage payment alone. Use this tool to understand the loan mechanics, not to judge affordability on its own.
Monthly Payment: $1074
Total Intrested to be paid: $186640
Total Paid after Loan Term: $386640
% intersted payment of total: 48.27%
