Installment Map

In SAC, a fixed portion of the debt is usually paid every month. As the outstanding balance decreases, interest also decreases. For this reason, the first installments are usually higher and become smaller over time.

In the Price system, installments tend to keep a more stable amount. At the beginning, a larger part of the installment corresponds to interest. Over time, the part used to pay down the debt increases.

Amortization is the part of the payment used to reduce the debt. In a financing installment, there is usually one part allocated to interest and another part allocated to amortization.

Extra amortization is an additional amount paid beyond the regular installment to reduce the outstanding balance more quickly.

In the simulator, you can define how each extra amortization is used: to reduce the term or the installment amount.

In the simulator, you choose how each extra amortization is used:

Reduce the term: the extra amount helps finish the financing earlier by reducing the number of remaining installments.

Reduce the installments: the current horizon is maintained, but the amount of the next installments is recalculated and may become lower.

When rules with different goals occur in the same month, they are applied from top to bottom in card order. Changing that order may change the result.

The bank may apply different rules depending on the contract.

It is the amount of debt still left to pay.

The outstanding balance is not simply the sum of the remaining installments, because installments may also include interest, insurance, fees, and other amounts.

It is an update to the debt amount by a rate or index defined in the contract.

When monetary correction exists, the outstanding balance can increase before decreasing with the installment payment. This update can also affect interest and future installments.

Monetary correction is not a separate fee. It is part of the method used to update the debt amount.

The simulator suggests the highest monthly TR rate found in the latest 12 months available in the project data file.

This rate is repeated in every month of the simulation only as an estimate.

The actual TR may change every month. Therefore, the simulation result may differ from the amount charged by the bank.

Not necessarily.

BCB average rates show historical averages reported by financial institutions, separated by modality. They are useful as an initial reference and comparison, not as a credit offer.

When the user has not entered another rate yet, the simulator defaults to the median annual rate for market real estate financing linked to TR available in the project data file.

The actual financing rate is defined by the bank and may vary according to the contract, property type, term, income, relationship with the institution, and customer profile. Before calculating, check and change the rate to the value stated in the proposal or contract.

The simulator works with the data entered by the user and presents an estimate.

The bank may consider other factors, such as:

• the exact date of each payment;
• interest calculated by day;
• insurance;
• fees;
• taxes;
• monetary correction;
• specific rounding rules;
• changes in indexes;
• other costs included in the total effective cost.

To check official values, review the financing proposal, contract, and statement.

The total effective cost, also called CET in Brazil, shows the total cost of the financing.

It may include interest, insurance, fees, taxes, and other mandatory expenses.

For this reason, two proposals with the same interest rate may have different total costs. When comparing financing offers, check the total effective cost, not only the interest rate.

No.

The results are estimates only. They do not represent:

• a credit proposal;
• financing approval;
• a bank offer;
• a guaranteed installment amount;
• a financial recommendation;
• an official contract condition.

Before making a decision, review the conditions presented by the financial institution.

Yes.

Enter the FGTS amount as an extra amortization in the month when you intend to make the payment. Then choose whether to reduce the term or reduce the installment amount.

The simulator does not verify whether you can use FGTS.

Actual use depends on current rules, the contract, the property type, the financing status, and approval by the bank or responsible agent.

The nominal rate and the effective rate are not the same thing.

When the contract states a nominal annual rate with monthly calculation, the monthly rate is usually obtained by dividing the annual rate by 12.

For example:

A nominal rate of 12% per year corresponds, in this case, to 1% per month.

The effective annual rate considers the effect of accumulated interest over the months. Therefore, it must be converted to find the equivalent monthly rate.

Use in the simulator the same type of rate presented by the bank. If in doubt, review the proposal or contract.

It means decreasing the number of installments still left to pay.

In this case, the extra payment is used to anticipate debt payoff. The installment amount may remain similar, but the financing ends earlier.

It means keeping the current horizon at the time of application and recalculating the remaining installments.

If an earlier application has already reduced the term, that shorter term is preserved. The extra payment reduces the outstanding balance and may lower the amount of the next installments.

No.

The simulator shows an estimate based on the information entered.

Actual amounts depend on the contract rules and calculations made by the financial institution.