Bond Calculator Objectives | Bond Calculators

The most common calculation objectives when using bond calculators are calculating monthly bond repayments & interest, determining levels of affordability, calculating the income qualification benchmark based on a required bond amount and analyzing optimal bond repayment options.

All of these objectives can be met by using our bond calculators. We also provide additional bond calculations which enable users to calculate sensitivities around the main bond variables – interest rates, bond periods and deposit amounts.

A comprehensive transfer and bond cost calculator is provided to assist in calculating an accurate estimate of the bond and transfer costs that will be incurred when purchasing a property. Our bond calculators also feature an amortization table which includes a column for the outstanding capital percentage – this calculator is well worth having a look at and is guaranteed to enhance any user’s understanding of how the outstanding capital amount is repaid over the entire bond period.

All our bond affordability and minimum income calculations are based on net disposable income as required by the National Credit Act.

Home Loan calculators helps to detail you the exact information related to your saving investment.

Mortgage Plus Bond Originators Recommend the Following Calculators:

Minimum Income Calculator

This bond calculator will show you what your monthly instalments will be and what monthly income you need to secure the loan.

Maximum Bond Calculator

Use this Bond Calculator to work out what is the maximum amount you can borrow according to your income

Bond Repayment Calculator

Use this Bond Calculator to work out what your monthly repayments will be.

Bond Status Calculator

This bond calculator shows you how much you still owe on your Home Loan, as well as how much Interest and Capital you have paid.

Increased Installment

This bond calculator will show you how much you can save by increasing your monthly installment. You will see how the repayment term shortens as well as the total savings in interest.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

When purchasing a home one of the most overlooked aspects is getting a good mortgage. The difference between a good and bad interest rate could save a person hundreds of Rands per month or give them tens of thousands of Rands of extra affordability. With interest rates near all time lows, now is an excellent time to lock in “Fix” a low interest rate through either a new mortgage or a mortgage refinance. However, due to the recent rates of mortgage defaults, many mortgage lenders are hesitant to give out new mortgages and getting the best rates are even harder to come by. Luckily, there are various steps a person can take to get a good mortgage rate.

Have Good Credit

The first step a person can take to get a good mortgage rate would be to have good credit. When reviewing a credit application, a person’s credit score is one of the largest factors that a bank uses in the mortgage approval process. This is because a credit score shows a person’s ability to make payment on time and as agreed and can be used to determine whether the person will continue to make payments on time in the future.

To understand your credit, it is important to check your credit report. If there are inaccurate or negative information on your credit report, it is important to fix the issues a few months prior to applying for the mortgage. Some of the easiest ways to improve your credit score quickly would be to have erroneous information removed, pay off any outstanding credit card balances, and pay off any existing charged off accounts. In general, you will need a credit score of 700 to be approved for a mortgage and a score of 740 to get the best rates available.

Put More Money Down

The second step a person can take to get the best possible mortgage rate would be to put more money down. In recent years, many lenders were willing to give mortgages to people with no down payment. Due to declining property values and high rates of underwater mortgages, most banks now require a higher down payment. In order to get approved for a new mortgage or a mortgage refinance you will need at least a 10% down payment. However, in order to get the best possible rate, and to avoid paying private mortgage insurance, you will need at least a 20% down payment.

Purchase a Cheaper Home

The third step that a person can take to get a lower mortgage interest rate would be to purchase a cheaper home. Home affordability is one of the biggest risk factors considered by mortgage lenders. In years past, mortgage lenders were willing to give a mortgage to someone whose housing debt to monthly gross income percentage was 40% or less. Since lenders have found that people with that level of housing debt are more likely to default, many lenders now recommend a percentage of 30% or less. Therefore, if you are looking to get a mortgage, purchasing a cheaper home will lead to lower payments and, therefore, a lower debt rate.

Negotiate

The fourth step that a person can take to get a lower mortgage rate would be to negotiate with lenders. If you have a good credit score, a large down payment, and are purchasing an affordable home, many mortgage lenders will want your business. If this is the case for you, you will be able to negotiate with lenders to receive both a lower interest rate and lower fees.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za