Best House Credit – Instant Loan Online
Who offers the best offers? Home loans or real estate loans are the most common option. At best, you already have some equity. Here you will find the provider with the best conditions. “The best way of financing is and remains the normal financing loan,” says Duca kim.
Housing finance – the 3 most common types of financing
Mortgage lending is an extremely complex and expensive topic. Now let’s focus on the three most popular forms of home equity financing. In addition, we give you a brief insight and conclude with a summary of the different forms of financing. This is the most popular type of home finance.
For the euro area, you now have to repay monthly or quarterly in a repayment installment. This has the great advantage that the tariff is always the same. The sentence consists of two different components. Because the interest rate is always the same, you pay more interest at the beginning than you would pay back.
This is an equity-free construction loan financing. This form determines a certain amount of funding. This has the disadvantage that the financing amount for a residential building is available relatively quickly after conclusion of the contract. What is the right financing for home financing? Ultimately, one’s own assessment is the most important criterion when it comes to granting mortgage loans.
If you do not have enough equity capital, the current good interest rate situation is an advantage and full financing is a good decision.
Tactical approach in high-interest phases (1990/91 market interest rate above 9%): Rule of thumb: high interest rate – short commitment. For high yield loans, the deadline should be as short as possible. Loan options are better that allow the debtor a free change when the interest rate decreases: An advance loan cost a variable interest rate for one year, then the interest rates are fixed.
Variable-rate loans are in line with the market.
However, as interest rates rise, the bank reacts quickly, and more slowly when interest rates fall. Therefore, you should keep an eye on the capital market and inquire immediately if the creditor relinquishes the favorable interest rates to you much later. A loan with obligation splitting provides more security in the interest rates.
In the first third of the term, the market interest rate is calculated at the conclusion of the contract and two thirds of the contract period when the new interest rate is calculated. Tactical approach in the low-interest phase (1998/99 market interest rate below 6%): Rule of thumb: low interest rates – long exposure. Arrange long maturities with fixed interest rates, preferably over ten years or more – even if 10/15 years require a premium over the 5-year period.
But you can also secure the favorable interest rate for many years with a premium. Note: A loan with a term of 15 years can be terminated by the borrower after 10 years without costly prepayment penalty. On the other hand, the house bank does not come out of the contract sooner: the favorable interest rate is valid for 15 years.
Mixed Costing: Split the loan amount – divide the capital raised into several loans with different conditions. This allows you to benefit from low interest rates, but does not tie the whole amount to long contract terms. Variable interest rates – ie interest rates that rise or fall with the capital market – are suitable for high-yielding periods.
However, despite the benefits of floating rates, you should only cover a small proportion of variable rate loans. There is a high risk that interest rates will rise and lending rates will exceed the financial framework. At the same time as the increased repayment, the deadline should be shorter. Because a short period costs less interest and is repaid faster.
Conditions – interest, repayment, unscheduled repayments, etc. are valid for a duration of 5, 10, 15 or 20 years. Often, the negative on the account is slimmer, but eats more in the course of the month than before, because the new contract in a high interest phase and interest rates rise.
Although the nominal interest rate is reduced by the discount, the remaining debt can be higher than the original amount at the end of the period. Unemployed, forfeiture or a wage are no longer necessary because young people come and the finances are put to the test. Arrange with the house bank at the time of contract signing that a special repayment costs nothing.
However, in the absence of these provisions, the investor may receive the missed interest payments with prepayment penalties or other interest premiums. Additional costs: The acquisition of real estate involves high expenses, which must also be financed: It is better to set up the bonus as a reserve or to repay the loan volume as a special contribution.