Mortgage loan of USD 200,000 for a repayment period of 30 years
The borrower has an own contribution of USD 100,000. The flat he wants to buy is worth USD 300,000. He lacks USD 200,000, for which he wants to take a mortgage from the bank.
The commitment is to be divided into installments over a repayment period of 30 years. We will check four loan offers for this amount and see which of the cheapest offers will be.
We will start with a mortgage proposal
The bank offers us fixed monthly installments of USD 919. Each of the 360 installments will be of equal size. The nominal interest rate we can count on when choosing a mortgage at Good Finance is 3.69% per annum. This interest rate is not very high. The bank charges a margin of 1.99%. The WIBOR rate in this case remains at the level of 1.7%.
The total amount we will give back to the bank will be USD 330 997. How easy it is to calculate this mortgage will generate a total cost of USD 130,997. Another of the mortgage offers with a fixed installment is Alior Bank’s offer. Here, monthly installments will be slightly higher, equal to 922 zlotys. The nominal interest rate is 3.71% per annum and the bank’s margin is 1.99%.
The next two proposals we will compare are a mortgage loan at Good Credit and a mortgage loan at Loan and Credit Polbank. Good Credit offers us a loan with fixed installments of USD 931 each. The nominal interest rate on the liability is 3.79% per annum.
The bank’s margin is currently the highest here and amounts to 2.09%. WIBOR remains at 1.7%. The amount to be returned to the bank will be USD 335,080. The loan will cost us USD 135 080.
The fourth proposal is a mortgage at Loan and Credit
The loan installments will be equal throughout the loan period and each of them will be USD 946 each. Nominal interest rate compared to the previous three offers here is the highest and amounts to 3.92% per annum.
The bank will charge a loan margin of 2.2% on the liability amount. WIBOR here is 1.72%. When deciding on this mortgage, we will have to pay USD 340 427 to the bank. This means that the cost of our loan will be more than USD 140,000. Of all four offers, this is the most expensive solution.