The linear mortgage is primarily characterized by higher monthly payments at the start of the mortgage, after which the monthly payments decrease each month. Maatwerk-Hypotheek provides you with all information about the linear mortgage.
Linear mortgage: what exactly is it?
The linear mortgage is the simplest type of mortgage under which you are entitled to mortgage interest deduction for up to 30 years. The monthly payments remain the same every month throughout the entire term of the mortgage. The mortgage debt is repaid in equal installments. If you have chosen a term of 30 years, i.e., a term of 360 months, the mortgage debt is divided into 360 equal portions. This is the amount you repay monthly. An interest component is added to this. The interest component becomes smaller and smaller over the term, because the debt amount on which you pay interest decreases every month. This means that the net monthly costs of the linear mortgage decrease each month.
Start my own calculation
Are you also curious about the maximum amount you could borrow to buy a home? Or do you want to know if refinancing your current mortgage would be beneficial for you? Then click on the “Start my own calculation” button below and indicate in the main menu what type of calculation (first-time buyer, mover, refinancing, mortgage based on current rental costs, or a mortgage tailored to your situation) you would like to receive. In addition to the calculation you will receive immediately, we will also send you an E-book detailing everything you need to gather to take out a mortgage. “Are”recalculate it myself" and indicate in the main menu what type of calculation you wish to receive (starter, mover, remortgaging, mortgage based on current rental costs, or a bespoke mortgage for your situation).
Besides the calculation you will receive immediately, you will also receive a E-book In addition to the calculation you will receive immediately, we will also send you an E-book detailing everything you need to gather to take out a mortgage.
The linear mortgage allows you to pay off the fastest.
With a linear mortgage, the principal repayment portion remains the same every month. The interest portion decreases each month because the amount on which you pay interest decreases. As a result, the monthly payments drop. This can be a comforting thought, especially if you are retired at the end of the term and may have a slightly lower income. Additionally, it is naturally a pleasant thought that you are already paying off a substantial amount of your mortgage debt from the very first month. With no other mortgage type do you pay off the mortgage debt as quickly as with a linear mortgage. The monthly payments are highest at the start of the mortgage, however, because you end with low monthly payments.
Linear mortgage benefits
The linear mortgage may be the right choice for you, especially because this type of mortgage offers various interesting benefits, including:
- The gross mortgage burden decreases every month.
- The net mortgage burden also decreases every month.
- Calculated over the entire term, the linear mortgage is the cheapest type of mortgage.
- You pay less interest than with other types of mortgages.
- The mortgage is fully repaid over the term.
- You are entitled to a maximum of 30 years of mortgage interest deduction.
- You are paying off the mortgage debt quickly
Disadvantages of a linear mortgage
Linear mortgages do not offer only advantages. There are also some disadvantages to the linear mortgage, namely:
- The monthly payments are relatively high at the start of the mortgage.
- Because you start with high monthly payments, you can often borrow a smaller amount.
Potentially a lower mortgage amount with the linear mortgage
For many people, choosing a linear mortgage results in a lower borrowing amount than an annuity mortgage. This is because a linear mortgage starts with high monthly payments that decrease over the term, whereas an annuity mortgage starts with low monthly payments that increase over the term. Naturally, you must be able to bear the monthly payments from the outset. As a result, the maximum mortgage amount for a linear mortgage is lower than for an annuity mortgage. This is because it results in a lower risk for the mortgage lender. Maatwerk-Hypotheek can, of course, advise you.
Advice on the linear mortgage
Would you like to know if the linear mortgage is the most suitable type of mortgage for you? We would, of course, be happy to advise you. Maatwerk-Hypotheek can tell you everything about this type of mortgage and your specific options. You can make an appointment immediately for personal advice regarding the linear mortgage.
Klik op de onderstaande knop “Request a free inventory consultation” and leave your details so we can call or email you back.