Playfully simply test different interest scenarios, repayment rates and maturities.
- Calculate the monthly installment on the basis of the loan amount, interest rate and repayment
- Calculate the total period of repayment of the annuity loan
- Visualization of the repayment course and creation of a repayment plan
The free construction interest calculator allows a quick and easy calculation of individual conditions, if all relevant key data are entered and this without any obligations. In this way, everyone can get an overview of costs incurred in connection with different criteria such as the fixed interest rate and the amount of the loan costs applied for.
Anyone who objectively assesses their own financial leeway can use the results of the construction interest calculator to sound out what is financially feasible at all and provide themselves with a high degree of planning security.
Help for the operation of the construction interest calculator
In the first category the loan amount should be entered. This includes all costs associated with the construction financing. Thus not only the pure purchase price of an inventory real estate plays a role, but also all resulting additional expenses. Even the financing of a new building project via a property developer or a private construction company involves much higher costs than originally stated. New builders must calculate additional costs in the form of commitment interest, which is always incurred when loan amounts are requested in individual tranches in line with the progress of construction and for the last time at the final acceptance of construction work. The banks have to borrow money on the capital markets and recover the loss of interest from the borrower in the form of commitment interest.
In addition, there are the costs of maintaining a building account, which is set up specifically for this financial transaction, and costs for partial payments. In principle, notary fees and costs for land registry matters are also due, which are added to the total cost of the real estate. Who did not save early own capital funds, must plan with the computation over the building interest calculator absolutely these additional costs and as total position into the input field enter.
Fixed interest rate – input field with great importance
In this input field the future borrower can enter his desired interest rate commitment. In times of low interest rates, it's a good idea to opt for a long fixed-rate loan that eliminates the risk of interest rates rising during the term of the loan. At the same time, the residual debt for follow-up financing is correspondingly lower than with a comparatively short fixed-interest period of five or ten years. Those who want to secure the currently still favorable construction interest rates should enter a fixed interest period of 15 or more years in the field. According to forecasts by financial experts for 2022, interest rates will continue to rise in the short term in order to curb inflation. In addition, the construction interest calculator can be used to enter the date of the first installment payment.
Repayment of the loan – individual possibilities
In the second section of the construction interest calculator can be clicked either the monthly rate including interest or the initial repayment rate. For the monthly installment, the consumer must first put his own economic leeway to the test. All current expenses must be compared to the continuous income, without special surcharges. The difference reflects the financial margin that can be provided for the monthly charge installment. However, everyone should plan for unforeseeable expenses that can quickly lead to a financial bottleneck if the calculation is tight.
The repayment rate does not have to be equal to the usual initial repayment rate of only one percent. Who wants to prevent mammoth terms and can save by a low construction interest rate, should invest this money in a higher amortization. This is a great way to reduce interest costs and shorten the path to debt-free homeownership. Who is not sure, can enter different numbers to get an idea of the cost.