PRICE Table Financing Calculator
Simulate your mortgage with the PRICE system (fixed payments) and see the payment evolution
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PRICE System Mortgage Financing
The PRICE System, also known as the French Amortization System, is one of the most used modalities for mortgage financing. It is characterized by fixed payments throughout the entire contract period.
How the PRICE System Works
In the PRICE system, the payment amount remains constant throughout the entire financing period. Initially, most of the payment consists of interest, and a small portion goes to principal amortization. Over time, this proportion reverses: interest decreases and amortization increases.
Advantages of the PRICE System
- Fixed payments facilitate financial planning
- Ideal for those with stable income
- Allows better family budget control
- Protection against sudden economic variations
Disadvantages of the PRICE System
- Total interest paid is higher than SAC
- Principal amortization is slower at the beginning
- Outstanding balance decreases slowly in the first years
When to Choose the PRICE System
The PRICE system is recommended for people who:
- Prefer fixed and predictable payments
- Have stable income over time
- Prioritize budget control
- Don't plan to make frequent extra payments
Frequently Asked Questions
What's the difference between PRICE and SAC?
In PRICE payments are fixed, in SAC payments are decreasing. PRICE has higher total interest, but lower payments at the beginning.
Can I make extra payments in the PRICE system?
Yes, it's possible to make extraordinary amortizations to reduce the outstanding balance and decrease the term or payment amount.
Is the PRICE system more expensive?
In terms of total interest, yes. However, lower payments at the beginning can make it easier for many people to pay.