How it is calculated
The loan is the price minus the down payment. After that, the same formula as the loan calculator is used: an annuity, or declining payments, rounded to the minor unit.
Insurance, a family benefit, and a tax deduction are not part of the payment. The deduction can be estimated on its own: it returns income tax already paid. It does not reduce the lender’s rate.
Loan = Price − down payment
Where the numbers come from
- Home price
- Down payment
- Down payment given as
- Rate — unit in the field: % per year
- Term — unit in the field: years
- Plan
Example
A flat priced at 8 000 000 currency units, a down payment of 2 000 000 currency units, and 16% for 20 years. The loan is 6 000 000 currency units. The payment and the extra interest are in the result.
Questions
A down payment in percent of what?
From the home price. 20% of 8 million is 1,6 million.
Is there a reduced rate here?
Enter the rate the lender named. The calculator does not fill in a family loan or a specialist loan on its own.
Why is the interest more than the loan itself?
Over a long term, interest has time to build up on a large balance. The schedule shows how much of each payment is interest in the early years.