Calculating interest on mortgage installments is very important for those who intend to finance a house or apartment in the long term, but we know that many people are not concerned about this, so we have prepared a special article for you to answer your questions.
How about knowing exactly how much interest you'll pay on each installment of your mortgage before you even sign it? That would be a good idea, wouldn't it?
Here on our portal, Digital Seguro, you can stay up to date with all the information about interest rates, financing, real estate credit, and much more.
Learn below how to calculate the interest on your mortgage.
After all, how do you calculate the installments for a real estate loan?
Buying your own home is still the goal of many Brazilians, but to make this a reality, it's necessary to take out a mortgage, right?
But sometimes it is not always possible to honor the payment of installments on time, for this it is essential to have financial education, therefore it is necessary to understand how the calculation of installments of this loan works.
After all, isn't this account so simple?
We answer no, because it's not simply a matter of dividing the purchase price of the house or apartment by the number of installments. It's important to consider several variables when performing this calculation, such as the interest rate, making this calculation more suitable for people with financial knowledge.
Calculation of real estate financing installments
The most complicated mortgage installment calculations are performed by private institutions. The installment is decreasing because interest is always calculated based on the remaining outstanding balance, which decreases each month.
Let's take an example: if you borrowed R$ 500 thousand from the bank, to be paid in 360 months, with interest of 7% per year, the amortization amount will be R$ 1,388.88 (R$ 500 thousand divided by 360).
For you to understand better, the interest needs to be added:
Understand: you need to divide 7% by the 12 months of the year to find the interest per month. So, 7% divided by 1200 = 0.0058333%. Now just take R$ 500 thousand x 0.00583 = R$ 2,915.
See how simple it is?
Would you like to make other financing calculations? Click here and run a simulation online financing.