The repayment calculator will show you what repayment rate you can use to pay off your loan and how quickly. For this, you just enter some key data of your construction financing and see how the loan conditions could change depending on the combination. The higher the repayment rate, the faster you will repay your loan. And the faster your remaining debt is reduced.
This is how the repayment calculator works
To understand how the amortization calculator works, you should first look at the amortization itself: It provides that you repay a fixed installment every month (or every three, six or twelve months) at a fixed interest rate. This means that over the years the share of the actual repayment in this installment increases. The smaller the sum to be repaid, the more the sum of interest is reduced – even if the interest rate remains the same. You can try out several variants with the calculator: If different credit institutions have offered you different interest rates?
Enter the loan amount and the respective interest rate, the desired amount of the fixed interest period and the planned amount of the initial repayment. This is how you can see how the term changes with the different interest rates. The same applies if you change the amount of repayment with a fixed interest rate. As a result, you will be shown your complete repayment schedule including the respective remaining debt. Further calculation options for your real estate loan are also offered by our financing calculator.
Fixed interest rate plays an important role
As long as the fixed interest rate lasts, the repayment calculator can calculate for you how long you will probably need to repay the loan. But if the fixed interest rate expires, the interest rate for the follow-up financing may be significantly higher. This means that the interest portion of the unchanged installments goes up again.
However, this does not mean that the longest possible fixed-interest period is the best option: the longer the fixed-interest period, the higher the interest rate will normally be. Here, too, it makes sense to try out several variants with the repayment calculator.
Tip: The best way to calculate the amount of real estate transfer tax you need to pay is to use our free calculator – quick and easy.
Unscheduled repayments can shorten the term
Not all lenders allow unscheduled repayments. But these can make you pay off your loan sooner overall: For example, if you get a raise or a big tax refund during the fixed-rate period, you might consider raising your rates a bit or making a one-time special payment, depending on your contract. Both options have a direct impact on the residual debt and thus on the term of the loan.