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House financing: calculator & tips for your financing

Home Financing: What you should consider in the home loan

With house financing calculator cheap into the dream house:

Summary

  • For a solid house financing you should u.a. know the different loan types.
  • In order to get the best house financing for you, you should secure a long low interest rate commitment, agree on the possibility of special repayments and resort to government support programs.
  • Setting too low a repayment rate is one of the most common mistakes when buying a home and building a house. In general, you should not save in the wrong places, such as expert reports.

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Is the time ripe for your house financing?

The interest on mortgages is currently very low and for many Germans home financing becomes affordable. Before borrowing, however, is the most tedious Search for a suitable object or for a property. As a borrower you now have the choice between a used property, the construction of a new house or the purchase of a new prefabricated house. Behind every project, however, should be a solid house financing. To find these, there are many things to consider.

Financing the house with the right loan

Careful financial planning should be at the beginning of any home financing, whether you want to build or buy a home. If you want to finance a home, you should know the different loan types. These differ, among other things, in relation to the composition of the monthly installment of interest and principal. Your choice of the right loan is what yours is all about own financial situation an important role.

These loan types are available:

annuity: Most common type of loan in real estate finance. Here, your monthly installments remain the same throughout the loan term.

Installment loans: A installment loan is repaid at decreasing rates. At the beginning of the house financing your rates are highest.

Final loan: The total amount is due in one fell swoop at the end of the loan period. During the term, only the lending rates accrue.

Variable loan: A loan without fixed interest. Their interest rates are regularly adjusted to the current interest rates.

Volltilgerdarlehen: You pay off the entire loan amount at the end of the first fixed-interest period.

Important: Better to take a higher loan than to calculate too tightly. If your construction money is insufficient, you must apply for additional funding. However, re-financing is usually only available on worse terms than the initial financing.

Important conditions for a cheap house financing

Home loans are usually very high – even small interest rate differences can lead to unpleasant additional costs. Before completing house financing you should try your Conditions to influence positively. For this you should contractually agree the following framework conditions:

Secure low interest rates as long as possible

Loan calculator: pay off house faster

Our home finance comparison will give you a detailed repayment plan. You can flexibly adjust the amount of repayment and thus play through different scenarios. In addition, the effects on the repayment period and the residual debt through the repayment plan can be seen at a glance.

Especially in periods of low interest rates, you should negotiate the fixed interest period and a agree as long as possible. Only then can you secure the current conditions for a longer period of time. However, interest rate developments can not emerge. Therefore, with a longer fixed interest rate, you always run the risk that interest rates will continue to fall. In view of the currently very low interest rates, however, it can be assumed that a long fixed-interest period will pay off.

With flexible repayment faster debt-free

With a home loan, you should secure flexible repayment options in the contract. Above all, flexible means that you are the Possibility for special payments – the so-called special repayment – secure. With this unscheduled repayment, you can pay off your debts in addition to the monthly installments. This saves interest costs, as you will be faster debt free. In addition, you should be able to adjust your monthly rate several times for free. This makes it possible to react flexibly to changes in one’s own financial situation.

Tip: If you are dissatisfied with the terms of your existing loan agreement, you can in many cases repost the loan. The advantage: With a rescheduling you can reconfigure the framework and often save a lot of money.

Use state support programs

In the financing of your house you should state promotional programs such as the KfW promotion, the residential Riester or the housing bonus use. These can be a useful supplement to the house financing of the bank. As a public promotional bank, KfW usually offers better conditions than conventional private financial service providers and, in particular, promotes the construction and purchase of energy-efficient housing with tailored loans. Even with the Wohn-Riester you can subsidize the purchase and construction of the state by the state. The residential Riester is usually worthwhile especially for families with several children, as they receive an annual allowance per child. The housing premium is only available in combination with a home savings contract.

Large equity ratio in house financing advantageous

For a cheap house financing, it is always advantageous if you have as much equity as possible. As a rule, the equity portion of home loans amounts to approximately 20 to 40 percent. In principle: The more equity, the better the terms of the loan. Finally, with a higher equity also reduces the risk of the bank. A house financing without equity – the so-called full financing – is also possible. Due to the lack of credit security, banks rarely offer house financing without equity.

Tips for buying a house

Those who find the construction of a house too expensive often resort to buying a house that is already ready for occupancy. As a buyer, you can use the property visit in advance and choose between a used and a new property.

Checklist for the object inspection

What do you have to do when visiting a used property think? An overview offers our checklist Property inspection:

Check the condition of the existing property

Used properties are usually slightly cheaper in conurbations than new buildings, as it lacks in popular locations usually free land. However, you should carefully check the condition and equipment of the existing property and on incurred modernization costs respect, think highly of. Because comprehensive modernization measures can tear a deep hole in your financial planning. As a prospective property owner, you should especially consider energy efficiency here.

Damage in the purchase contract

Before signing the purchase contract, all outstanding issues should be resolved. When thoroughly reading the contract you should make sure that Damage documented with enclosed photos and be contracted. Warranty claims, ie who is liable for which defects, should also be clarified in detail. Also check if the contract contains a right of withdrawal. Because once the purchase contract is signed, you can only resign if a right of withdrawal is explicitly provided for in the contract. In general, there is the possibility of formulating circumstances in the contract, under which a resignation is possible.

Calculate additional costs when buying a house

If you want to buy a property, you should also take into account the additional costs of house financing. Keep in mind that the effective interest rate, for example, does not yet include any commitment interest. These are still on top. In addition, there are, inter alia, costs for the notary, the land transfer tax and sometimes fees for special repayments. Another cost center is the so-called prepayment penalty. If you want to withdraw early from your contract, you must pay a compensation to the bank.

Do not save in the wrong places

In addition, you should not save in the wrong places and refrain from expert reports. Because only a specialist can reliably judge whether there are deficiencies, for example on heating pipes or house roof. Who saves here, the risking high costs in hindsight. Before concluding the contract, it is advisable to collect all ancillary costs when buying a house and, together with the indication of the effective interest rate, compare the offers of the numerous providers. With a house financing calculator you make sure that no better offer is available.

Number of Germans who want to buy or build a house

Whether building a house or buying a house – every project has its advantages and disadvantages. Statistically, however, the purchase of a used house is most widespread. Of the Share of homebuilders is comparatively low – but also the prefabricated house is becoming increasingly popular. If you are in a hurry or are not a hobby craftsman, the purchase of an existing property or a new prefabricated house may be the better option.

House building: That is to be considered

It is important for many people to bring their own ideas into the future home. Therefore, you decide to build a house instead of buying a newly built prefab house or a used property. However, you should be aware that building a house a lot of time and usually own contribution requires.

What is important when searching for a property??

Finding the right property is very difficult in many areas. Especially in metropolitan areas, vacant plots are in short supply. If you have found a suitable one, you should not blindly sign the contract. Before buying a property you should always look for the previous use inquire. If the land was used commercially, it may be that the soil is contaminated. As a buyer, you would then be responsible for the contamination with the purchase of land. Even water pipes can lead to expensive construction delays. To be on the safe side, you should therefore have a professional opinion on the soil quality created.

The “muscle mortgage”: saving by own contribution

If you do not have the financial means – for example in the form of equity capital – you can still benefit from the more favorable conditions in building a house with the so-called muscle mortgage. The bank expects the muscle mortgage Construction own work as equity – and awards better conditions as a reward. The only requirement: you are skilled in craftsmanship. Here you should also be honest with yourself. Only if you can realistically assess your craftsmanship, you benefit from the muscle mortgage. If you overestimate yourself, you risk expensive construction delays or even damage to the house.

To rely on specialists

In addition, it is important when building a house Involve experts. So a specialist should regularly review the construction progress and visit the house during the construction inspection. Only in this way can you, as a home builder, recognize building defects early on.

Consider all additional costs when building a house

In addition to the actual construction costs, you should also take into account the incidental construction costs. For example, notary costs and land transfer tax are incurred. In addition, especially expensive Commitment interest become. The background: When you build, you usually access the loan in installments. The bank will make the balance available to you at any time. And that can be paid for. Before you conclude a house financing, you should therefore ask the vendor for the amount of the provisioning interest. This sometimes varies greatly.

Avoid common mistakes when buying a house and building a house

There are some common mistakes that should be avoided when building or buying a home. In particular, the financing plan is often something wrong. For example, borrowers often choose a very low repayment installment. With the result that the debt free moves into the distant future and high interest costs incurred. If you can afford it, you should rather from the beginning a higher repayment rate begin. In addition, only a few of them use state funding opportunities such as KfW funding, which can be a useful supplement to house financing. Also do not save in the wrong places and refrain from expert opinions. To avoid unpleasant surprises, professionals should assess both the plot and the house in terms of soil or construction quality.

There are also some things to keep in mind when determining the amount of the loan: If you are too tight and need to top up your credit or apply for additional credit from your provider, you will generally receive worse terms. It is better, from the outset to raise a higher loan. With our mortgage calculator, you can compare many providers. So you will not only find the right loan amount, but also the right provider for your financing.

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