{"id":13848,"date":"2022-11-22T10:44:35","date_gmt":"2022-11-22T02:44:35","guid":{"rendered":"https:\/\/leasing.dmcihomes.com\/blog\/?p=13848"},"modified":"2022-11-22T10:48:05","modified_gmt":"2022-11-22T02:48:05","slug":"condo-home-loan-calculator","status":"publish","type":"post","link":"https:\/\/leasing.dmcihomes.com\/blog\/condo-home-loan-calculator\/","title":{"rendered":"5 Reasons to Use a Home Loan Calculator When Condo Investing"},"content":{"rendered":"

More than anything, finances are at the top of condo buyers\u2019 considerations. Essentially, the most important question you ask yourself is whether or not you can afford the property you\u2019re eyeing.<\/p>\n

This factor becomes an even bigger priority when you\u2019re planning to make this unit a condo for rent later on. It\u2019s not just a question of affordability but also profitability. Even though you can find reliable partners like DMCI Homes Leasing<\/a>, you would want to address all money concerns and make sure that your investment offers the best returns.<\/p>\n

When sorting out finances for buying a property, one tool stands out as the most helpful: home loan calculator. Philippines-based financial experts recommend using this to create a better budget.<\/p>\n

In this article, we\u2019ll explore the different reasons it\u2019s wise to use a home loan calculator before buying a property. Should you decide to purchase or rent a DMCI Homes unit<\/a>, consider crunching up numbers in the calculator so you can have a well-informed purchase decision.<\/p>\n

\"APhoto courtesy of Clayton Robbins<\/a> via Unsplash<\/em><\/p>\n

5 benefits of a home loan calculator in the Philippines<\/h2>\n

In a nutshell, a home credit cash loan calculator in the Philippines can help you determine how much your monthly mortgage will be. This can easily help you narrow down options in the market and buy the best condo<\/a>. More specifically, it can help you do these things:<\/p>\n

1. Know the ideal property price range<\/h3>\n

In a home loan calculator, you key in different prices of properties and see how much the monthly loan payments are for each option. With this, you can easily determine which price range is most suitable for your financial situation.<\/p>\n

The golden rule in property buying is that you shouldn\u2019t spend more than 28%<\/a> of your monthly income on mortgage payments. This is to ensure that you\u2019ll have enough budget for other expenses, such as food, healthcare, emergencies, and more.<\/p>\n

\"redPhoto courtesy of Tierra Mallorca<\/a> via Unsplash<\/em><\/p>\n

Let\u2019s say you earn P100,00 a month – your mortgage payments must not exceed P28,000 a month. With this ideal figure, you can tinker around the calculator to find the best property price range for your financial goal. The good thing about renting out a unit is that the monthly income can cover a huge chunk of your loan payments, if not all.<\/p>\n

According to the latest report, the average rental rental fee<\/a> for a studio or one-bedroom property ranges from P870 to P930 per square meter in business districts in Metro Manila. In this case, if you buy a 25-square meter DMCI Homes condo unit, you can earn P21,750 to P23,250 a month, a great boost for paying off the mortgage.<\/p>\n

2. Find out how a small or big down payment can affect monthly payments<\/h3>\n

Another benefit to using home loan calculators is that you\u2019ll be able to see how your down payment can influence monthly payments. A large down payment is generally recommended<\/a>, as it will lower down monthly payments, interest expense, and insurance premiums. But often, it means waiting longer to afford the condo or having fewer funds to do some upgrades<\/a> and beautify the home further.<\/p>\n

Thus, it makes sense to know how specific amounts of down payments can influence your monthly obligations. You\u2019ll be able to see what you can afford at the time of purchase and in the long run.<\/p>\n

\"PhotoPhoto courtesy of cottonbro<\/a> via Pexels<\/em><\/p>\n

Do note, however, that most real estate companies in the Philippines require a down payment of 20 percent<\/a> of the total contract price (TCP) of the property. Some pre-selling units in DMCI communities are available for much lower, about 10 to 15 percent of the TCP<\/a>.<\/p>\n

3. Be inspired to start saving<\/h3>\n

With a clear number of how much is the ideal down payment for your financial situation, you\u2019ll be more compelled to save up. In fact, it\u2019s easier to draw up a savings plan<\/a> when you have a target figure in mind. Determine how long you would want to build your funds so you can determine how much you need to set aside for each month.<\/p>\n

\"PhotoPhoto courtesy of Towfiqu barbhuiya<\/a> via Unsplash<\/em><\/p>\n

For instance, your down payment target is P1M and you plan to hit it over the course of two years, then you should set aside P42K a month. If you think a one-time-big-time down payment is overwhelming, choose staggered payments. You can do this when you invest in a DMCI Homes property. Follow these steps to earn for your condo rental down payment<\/a>.<\/p>\n

4. Manage repayment plan and save more in the process<\/h3>\n

Aside from motivating you to save, another benefit of a home loan calculator in the Philippines is you can actually find other ways to save more. By adjusting figures on the tool, you can create a better repayment plan.<\/p>\n

For instance, you can plan to pay X percent higher of a down payment to save more on interest charges. You may choose to pay an X additional amount each month to reduce the loan length by X months.<\/p>\n

\"blackPhoto courtesy of Kelly Sikkema<\/a> via Unsplash<\/em><\/p>\n

Not only will these repayment strategies help you manage debt better<\/a>, but also allow you to enjoy the property investment more. You get to tame your expenses and secure ownership of it faster. When you put it out for rent, it will be a money-generating vehicle, which can help further in the mortgage payments.<\/p>\n

5. Compare loan offers and choose the best one<\/h3>\n

There are plenty of loan options in the market. The two main types are conventional and flexible<\/a>. The former involves making fixed payments over a certain period of time. The latter, meanwhile, allows more control over the interest rate of the loan.<\/p>\n

\"PersonPhoto courtesy of Pixabay<\/a> via Pexels<\/em><\/p>\n

Then, there are also loan options based on the organization offering the funds. You can choose bank financing, Pag-IBIG housing loan, or in-house financing. On top of these, you have to choose the loan term, between a 15-year and a 30-year loan. With a home loan calculator allowing you to adjust numbers, you can choose the best loan for your financial needs.<\/p>\n

Parts of a home loan calculator<\/h2>\n

A home credit cash loan interest rate calculator in the Philippines requires different variables for computation. These are the basic elements you\u2019ll typically see in this tool:<\/p>\n