Do you want to apply for a mortgage but don’t know which one is best? You have to know that the Annual Equivalent Rate (APR) is one of the data that will help you when comparing different mortgages. But, really, what is the APR and how is it calculated? We tell you about it in our article. Furthermore, if you need a mortgage, our Housfy team of mortgage brokers will be with you at all times. They are in charge of negotiating with the country’s banks and present you with several options so that you can choose the best one for you. Find the best mortgage without mistakes Going from bank to bank is a thing of the past.
Differences between the TIN and the APR
Mortgage loans have two interest rates associated with them, the TIN and the APR, which is why it is important to differentiate them. Likewise, to know what the APR is and how it is calculated, it is also important to know what the TIN is and what it is for. The TIN Indonesia Phone Number List or Nominal Interest Rate is a fixed percentage established by the bank for the provision of money. This reflects the payment of interest for transferring the money in a specific period. What is the difference with the APR? The TIN does not take into account the expenses associated with the mortgage, but only the interest agreed with the bank for lending an amount of money within a certain period. Unlike the APR, its calculation does not necessarily have to be annual. How is the APR calculated? To understand the concept, we must know that the APR is the result of a mathematical formula that takes into account the Nominal Interest Rate, the commissions and the term of the mortgage, among others. By calculating all these factors, we can see what the real cost of an operation is annually. However, its calculation is indicative.
What is the APR and how is it calculated? Apply formula
As we have mentioned previously, the APR is the result of applying a mathematical formula. However, to calculate interest in the APR , it is necessary to have these data to know the most realistic percentage possible: Initial capital. Amount of money that you are going to request from the bank. Nominal Interest Rate or TIN . The fixed percentage that the bank Latvia Phone Number List establishes for lending you money. Expenses of establishing a mortgage. We are referring to the notary, agency and Property Registry expenses. Periodic mortgage expenses. In many cases they are related to the previous point, but this time we are talking about taxes linked to the sale. The frequency of the return. That is, if you are going to pay monthly, quarterly, etc. installments. When we talk about mortgages, it is usually monthly. Mortgage amortization period . We refer to the return of the money before the established date. Where should the APR appear? Currently, it is mandatory by law for entities to report the amount of the Annual Equivalent Rate (APR). ¿Why is it so important? The client must know what the APR is for each product,