Month: July 2019

Differences between personal loans and credit cards

by Sharon Garcia
At present, many of the people seeking financing do not know exactly what features should be fixed in the process, as which option will cost them less for their pockets or which one offers greater comfort. This is where loans and credits come into play. However, not everyone knows where the difference lies between a loan and a credit. That is why, from Good Finance, we show you the characteristics and differences between both options.

How do credit cards work?

How do credit cards work? Credit cards provide smaller amounts of money, that is, a certain amount of cash is available, up to a maximum limit. This is not necessary to spend, but it can be available, if so decided. For a set time - which usually lasts about a month - that money can be available partially or in its entirety. The use of credit cards is usually associated with the accumulation of operations. Once this one month cycle ends, the fee that represents the transactions to date will be charged. If these amounts are not paid at the moment, the bank may charge a series of interest as the equivalent annual rate, popularly known as APR.

How do personal loans work?

How do personal loans work? Personal loans cover a specific need in the plaintiff, for example, they are usually requested to make certain purchases (consumption), home renovations or, to reunify debts. Once the amount has been established, a maximum term for its return is agreed, this quota being totally flexible to the plaintiff, which gives it great comfort when paying the borrowed money. Loans are usually larger amounts of money that are provided in full at the time of contracting the service. For example, Good Finance gets loans to our users of up to € 30,000, currently. Unlike credit cards that are smaller amounts than those available during the month, or time established with the entity.

In loans the term is always the same

In loans the term is always the same While in credit cards this amount will vary depending on the transactions made during the estimated time. As an example, the loans you can get through your Good Finance app have a term of up to 72 months. In addition, in the loans the total interests are pre-established and therefore are invariable from the contractual act. Once you know all this information, if after this you are still looking for financing, do not worry, because from Good Finance you can get advice and your personal loan through the app or directly through our new website. Do you have any advice, curiosity or question that we have not commented on? What are you waiting for! You can help many users who read your comment on our blog?

Learn to Simulate Your Mortgage

by Sharon Garcia

Have you found the house of your dreams? Where do you want to build your future home? It will now be necessary to think about the financing of your property. Indeed nowadays few people buy their homes without resorting to credit. But how to know the amount of your future monthly payments? Or how to choose the duration of your mortgage, and the one that will best meet your expectations and needs? The real estate mortgage simulator is there to help you find your way around and answer your questions thanks to these simulation tools.


The mortgage and its specificities

The mortgage and its specificities

A mortgage is granted by a bank to finance your property, whether for a house, an apartment or a land. Different types of real estate loans exist, and you will be offered, depending on your project, or your situation.
In case you want to buy your property as your main residence, you can use the loans, that is to say, granted by the State, subject to fulfill the conditions of obtaining. The zero-rate loan, also known as PTZ +, is one of them. It allows a household of first-time buyers to help them access the property, in the case of a new property, or in some cases, an old property, under certain conditions.
Among the types of loans, the bank loan corresponds to the most common financing. All banks are able to offer them. There are several kinds :

  • The depreciable loan: it is the most common loan in France. The monthly payments made by the borrower amortize the capital borrowed and repay the interest on the mortgage over time. The last term of the mortgage means that the loan is fully repaid.
  • In fine loan: Unlike the depreciable loan, the capital is not repaid through monthly payments. It concerns borrowers who have available savings on which the financing will be backed. All borrowed capital will be repaid on the last due date.
  • The bridge loan: The bridge loan is not depreciable. It concerns borrowers who already own property, which they wish to put on sale, and which will not be sold before the purchase of a new home.


Simulate your mortgage

Simulate your mortgage

Thanks to the simulator, you can not only compare different types of loans, but also calculate your future monthly payments. With a few clicks, you can quickly assess the amount of monthly payments that you will have to repay based on the amount borrowed and the duration of your mortgage. It is also important to know your borrowing capacity. The simulator will also allow you to estimate the maximum amount of property you can buy and thus determine the amount of your future loan.
Finally, an important point, which will also be calculated by the bank from which you will subscribe your mortgage: the calculation of your debt ratio. The simulator will calculate for you your debt ratio based on your current income and expenses. The maximum debt ratio is about 33% of your income.

The mortgage calculator also allows you to compare the various offers of home loans, which are numerous. Many criteria must be taken into account and you must know the different points that you must compare: the interest rate of the loan, the duration of the loan, the cost of insurance and especially the total cost of credit.


Interest rate is fixed or revisable

Interest rate is fixed or revisable

With a fixed rate, the borrower knows the interest rate from the beginning of his loan and therefore the amount of his monthly payment. It will be fixed for the duration of the loan. For the revisable rate, the monthly payment varies over time according to a benchmark. Many adjustable-rate loans have been revised to protect borrowers from rate increases that may apply.

The mortgage simulator can also calculate the savings you can make if you want to renegotiate your loan. Indeed, current rates are more advantageous than a few years ago. With the simulator, you can calculate the impact of renegotiation, and know if you can lower the cost of your credit, and reduce your monthly payments and the duration of your mortgage.
Among all the features of the mortgage simulator, you can also assess the notary fees you will have to pay. They depend on the type of good purchased and will always be your responsibility. Finally, you can view your amortization table, with details by month or by year of your repayments throughout the life of vote mortgage.