These questions often concern loan seekers. It is a fact that the money required for whatever – either ultimately does not exist or cannot or should not be made liquid – and must be borrowed. It is also clear that the money will have to be repaid sooner or later – usually through monthly installments plus interest.
It can be deduced from this that these installments are paid for several months to many years each month depending on the amount of the loan and must in any case be available. If you now have a loan in mind, it is important to honestly and precisely analyze your individual financial situation and perspective. This should be done in writing and should not be overlooked.
How much credit do I get with which income?
Ultimately, it is not the regular income that is important when determining the monthly financial resources available, but the monthly amount available after deducting all regular expenses. And this sum should ideally also be generously reduced again in order to be able to comfortably manage necessary expenses out of line (e.g. new refrigerator or car repair) and not to be dependent on a next loan. Read our borrowing tips.
Small loans, mostly in the four-digit USD range, which private individuals need for purchases such as electronics or a used car purchase, are usually granted to employees with regular income (provided they are no longer in the trial period), easily and without complications. Even large amounts can be lent out through long terms with low monthly installments. It should be noted, however, that with longer terms, the interest payments are also correspondingly higher, since the reported interest is due per year and not once on the entire loan amount.
Our overview shows you an exemplary calculation for the monthly installments in USD for a loan amount of 10,000 USD. Credit costs (e.g. fees or insurance), delayed rate starts, etc. are not taken into account.
Real estate loan
The situation is completely different with a real estate loan, for example for buying a house or building a house. Since these are considerable amounts, the cost of the calculation and the inclusion is of course higher. However, the bank has crucial security for the proper repayment of the loan: the property to be financed. In addition, real estate financing is a life thing that you usually only do once.
To determine the maximum purchase or construction sum, the maximum financial feasibility must be calculated. This amount results from the available equity and the maximum loan amount that a bank would grant.
The amount available for real estate financing can be calculated using the following formula:
monthly rate x 12 x 100
Interest rate in% + repayment in%
The value determined in this way is the total amount available for the construction or purchase project. This also includes all additional costs, such as notary fees, real estate transfer tax and costs for architects, interior fittings and the like.