Before buying a house with a mortgage, you need to know how to pay the installments taking into account interest rates.
Because, mortgage interest will affect the amount of installment costs every month. Especially considering that the mortgage installment period is quite long, it can be 5 to 25 years. Of course, interest can rise every year.
If you are still confused about how to calculate mortgage home installments, here’s a discussion of mortgage installments, types of mortgage interest rates fixed and floating.
Come on, see the complete information below.
Get to know KPR Installments
KPR, which stands for Home Ownership Credit, is given by a bank to someone who wants to buy a house in installments.
Because the mortgage is a loan from a bank, the installment payments will also be accompanied by an interest rate, namely the remuneration to the bank paid by the mortgage debtor.
Some people may already know about the tribe flat flower and effective interest.
Flat interest is commonly used for short-term consumer loans such as credit cardmultipurpose credit, or unsecured credit (KTA).
While the effective interest is a combination of interest floating (floating) and flatwhich is usually used for pay mortgage including Subsidized Mortgage.
But instead of effective interest, you may be more familiar with interest rates fixed (fixed) and floating in mortgage payments.
However both have their respective advantages that can be considered.
For more details, see the reviews and interest calculation mortgage below.
4 Home Installment Strategies That Can Make Repayment Easier
Types of Mortgage Interest Rates Fixed
Like mortgage interest fixed have clear installment certainty. mortgage fixed or a fixed interest rate guarantees certainty in monthly installment payments until the end of the credit period.
For more details, there are several advantages of KPR fixed which can be considered.
- The installment value per month can be the same and remains from the beginning until the credit period. With the certainty of installments, it can make it easier for debtors to manage their finances every month without having to worry about the risk of rising interest rates.
- If you want to pay off your mortgage installment in the middle of the loan period, there are no penalty fees and provision fees.
- Mortgage interest rate fixed profitable if national economic conditions fluctuate because when market interest rates rise, mortgage installments will remain unchanged.
If you already understand the advantages, here is how to calculate home installments using the mortgage interest rate fixed.
Formula = Credit Principal x Interest Per Year x Tenor in 1 Year : Tenor in Months
For example, you want to buy a house with a principal loan price of Rp. 500 million, then pay a down payment of Rp. 50 million.
Then, apply for a mortgage for the remaining house price minus the down payment, which is IDR 450 million. Tenor taken 10 years with interest rate fixed 11%.
So, how to calculate the monthly mortgage payment is P xixt : number of months.
P = ceiling or loan principal
i = interest rate
t = tenor
That means, the calculation is IDR 450,000,000 x 11% x 10: 120 = IDR 4,583,333 (monthly mortgage installments).
You can also do other simulations to try out how to calculate mortgage mortgages, for example, Tenjo City for The Ruby Type with a selling price of IDR 220 million.
So, the calculation is IDR 220,000,000 x 11% x 10 : 120 = IDR 2,016,666 for monthly mortgage installments.
Interest rate Floating
Mortgage interest rate floating or floating can be chosen for those of you who can take the risk. There are known advantages, namely:
- Mortgage rate value floating fluctuating and can be felt if there is a decline in market interest rates, because it is certain that interest rates will also fall.
- If there is an interest rate that must be paid in that period, it will be lower than the previous time.
- Mortgage interest rates are advantageous when the country’s economic conditions are good because of the possibility of interest rates moving down and getting lower.
You can calculate mortgage home installments floating use the mortgage calculator at 99.co Indonesia here.
Keep in mind, that how to calculate the home mortgage interest rate system floating adjust to market interest rates.
The simulation, if you apply for a mortgage for a house in Grand Cinunuk for Rp. 500 million and the tenor you want to take is 10 years.
This installment has a fluctuating interest rate of 10% from year 1-3 while in year 4 and so on it increases to 12%, then the calculation is as follows:
IDR 500,000,000 x 10% x 3: 36 = IDR 4,166,666 (mortgage installments per month for the first three years).
IDR 500,000,000 x 12% x 3: 36 = IDR 5,000,000 (monthly mortgage installments from year 4 onwards).
Of course, these costs are in addition to the total bank fees, as well as the total notary fees which include the Sale and Purchase Deed and Customs Transfer of title.
nowIt’s quite easy, isn’t it, how to calculate house installments?
If you’re looking for a comfortable home, the 99.co Indonesia website also has recommendations for modern homes in different areas, such as:
I hope the above information is useful, yes!
5 Recommendations for Cheap Apartment Installments without DP in Jakarta