Calculate a mortgage to know what monthly payment to pay according to your income
How to use the mortgage calculator to find out the payment?
Fotocasa Life calculators are very easy to use. To use the mortgage payment calculator you must include:
- Your net monthly income, that is, the income you receive each month in your bank for your work
- The net monthly income of the other person who will take out the mortgage with you. If you apply for the mortgage alone, you will not need to include this information
With this data we can calculate what fee the Bank of Spain recommends based on your income so that you pay monthly.
Link
Remember: this is just a generic estimate to help you crunch the numbers. However, the monthly payment you pay will depend on other factors such as other fixed expenses you have, the price of the home you are going to buy or the amount of income you have.
What is the purpose of knowing what mortgage payment you should pay?
The Bank of Spain recommends dedicating between 30% and 35% of your income (or your income together with that of the co-owner) to pay your mortgage.
This is because a third of income should be dedicated to paying debts, another third to paying other fixed expenses and the third third to leisure and savings. In this way, a balance is maintained between expenses and savings.
With the Fotocasa Life mortgage payment calculator you can calculate this third that is recommended to be dedicated to the payment of the mortgage loan.
When to choose a higher or lower mortgage payment?
This percentage that you will find in the calculator is merely informative, since choosing a more or less high monthly payment will depend on your economic and personal situation.
You could choose a lower mortgage payment when: for example, if you have children or other loans (such as a car loan) that you have to pay, this percentage will be lower. Paying a third for your mortgage will mean that you will not be able to pay other fixed expenses.
- Choosing a lower payment will mean that you will spend more time paying the mortgage. It is advisable to calculate how much you will pay in total according to the monthly payment you choose.
You could choose a higher mortgage payment when: for example, you have a high salary, you have no other current loans, paying more for the monthly payment will not prevent you from being able to continue paying the rest of your fixed expenses.
- Choosing a higher monthly payment will mean that you will spend less time paying your mortgage and that you will pay less in interest in total. But be careful, a fee that is too high could unbalance your finances.
Source: Fotocasa