How do I do it online?
A home loan simulation is a great way to learn more about the home buying process and get an idea of the type of loan you qualify for. It’s also a good way to see how different interest rates and down payment amounts will affect your monthly payments. In this article, we’ll explain how to do a home loan simulation.
The 4 steps to a home loan simulation
Step 1: Find a home loan simulator
The first step is to find an online home loan simulator. There are many different options out there, so take the time to search for the one that will work best for you. Once you’ve found a simulator you like, create an account and log in.
Step 2: Enter your personal information
Once you are logged in, you will need to enter some personal information into the simulator. This includes your name, address, income, debts and credit score. The simulator will use this information to calculate the type of loan you qualify for and your monthly payment amount.
Step 3: Choose your loan details
Next, you’ll need to choose some details about your loan. These include the interest rate, down payment amount, loan term and whether or not you have private mortgage insurance (PMI). Once you have entered all this information, the simulator will calculate your monthly payment.
Step 4: Discover your results!
Now that you’ve entered all the necessary information, it’s time to see your results! The simulator will show you how much your monthly payment would be under different scenarios. For example, you can see how increasing your down payment would reduce your monthly payments. You can also see how different interest rates would affect your payments. Play around with the simulator until you find a loan scenario that works for you.
Top websites to perform a home loan simulation
The boom in the real estate market and the development of websites of banks and brokers has democratized the simulation of real estate loans. You don’t need to visit all the websites to do this because you will have more or less the same rates and results. However, in order to have up-to-date data (notably the average loan rates practiced at the date of your simulation) you can turn to sites with a strong reputation. Here is a non-exhaustive list of well-known online loan simulators to help you:
- the site of the French public service
- the Meilleurtaux site
- the broker Empruntis
- the comparison site Lesfurets
- the various websites of the major French banks (Crédit Agricole, Caisse d’Epargne, La Banque Postale…)
Doing a home loan simulation is a great way to learn about your borrowing capabilities for a home purchase and determine what type of loan you qualify for. It’s also a useful tool to see how different interest rates and down payment amounts will affect your monthly payments. Follow the steps outlined in this article to do your own home loan simulation today!