Mortgage lending comparison
Current test winner interest 2019
Important for mortgage lending
Current test winner interest 2019
Important for mortgage lending
Now in your own four walls
Rising rents, low interest rates and the prospect of investing in something of their own: reason enough for many people to finally move into their own homes. However, only a few can fulfill the dream of their own home without further ado. Once the right property is found, a huge amount of money is needed in most cases. Many then resort to one special form of installment loan back: the construction financing.
What makes a mortgage loan?
Mortgage lending: Keep tips and save money
Who wants to complete a construction loan, should note some mortgage lending tips. In this way, homebuyers can cheaply finance the home and avoid typical mistakes.
Mortgage lending is a loan that is tailored to the construction, purchase and modernization and renovation of home ownership. A construction financing points compared to a conventional installment loan Inter alia, the following features:
usually cheaper interestDue to better collateral for the lender and longer maturities, interest rates on mortgage lending are often cheaper.
high loan amount: There are usually no restrictions on the loan amount, so that construction loans can be completed over several hundred thousand euros. Finally, real estate prices and construction costs are also moving in this area.
long term: Since real estate loans are usually very high, there is also a correspondingly long term. Many borrowers pay a construction loan for several decades.
Compare mortgage lending – that’s how it works
Anyone who knows the advantages of mortgage lending and is looking for the right offer can quickly be overwhelmed by the abundance of offers. No wonder, after all, the number of providers is very large. In order to find the cheapest mortgage financing, it is necessary to check numerous offers – and this can cost quite a lot of time. However, there is one way to significantly reduce the research effort: with an online mortgage lending comparison. This compares the offers of numerous lenders and lists these, ascending by interest rate on. Particularly practical: the comparison takes into account individual details in the calculation.
How to achieve the best result in mortgage lending comparison:
And in just 3 minutes
This guide will help you to provide the necessary data for mortgage lending and to contrast the providers and their terms.
Step 1 – make individual settings
Net loan amount: How high should the credit be??
running time: For how long should the interest be fixed?
Mortgages: To what percentage should the object be mortgaged?
Amortization: what percentage of the loan should be repaid per year?
Users can also enter the postal code – regional offers are then included. Since these are often cheaper, this can be quite worthwhile.
Step 2 – Review the results
By clicking on the Calculate button, users get an overview of their results – the offer with the cheapest interest rate first. The construction financing comparison lists the following data:
Name of the provider,
Interest rate (target and effective interest),
Amount of monthly installment,
Total amount of the loan, which the borrower has to repay.
Important: Additional costs such as insurance or land register entry are not included here.
Step 3 – Request Financing Proposal
If an offer is interesting, users will be redirected to the provider with just one click and can request a personal financing proposal free of charge.
With the aid of a construction financing comparison, numerous variants can be played through, so that borrowers – according to their personal requirements – can find the best mortgage lending in a very easy and time-saving manner. In addition, however, interested parties should also take into account the results of a mortgage lending test, for example in financial magazines. Here, above all, a look at the current test winner can pay off.
Conditions of mortgage lending
Wished better conditions? With a rescheduling borrowers can change the provider and renegotiate the terms around interest, repayment and maturity. Especially in periods of low interest rates, rescheduling can pay off.
When comparing mortgage lending it is already noticeable that the offers of the lenders vary widely. In addition to the provider, the terms of a financing depend on other factors. Not only the required loan amount, but also the maturity of the interest rate commitment, the interest rate and the agreed repayment rate have an impact on the structuring of mortgage lending. In principle, it is important to carefully consider in advance which monthly burden is maximally justifiable and whether this is sufficient to fulfill the desire for your own property. Because the conditions of mortgage lending should always include the own financial resources.
Interest rates are currently particularly favorable
The current interest rate makes it possible: Thanks to the low interest rate, all types of loans are particularly favorable, including real estate loans. But it is not only the low interest rate that influences mortgage rates. As with most loans, the term and the loan amount also determine the amount of interest. The equity ratio also plays a role. The effect of changing these variables is easy for users to identify with a home loan comparison.
Target versus effective rate
For loans, two interest rates play an important role: the borrowing rate and the annual percentage rate. The former describes the pure loan interest rate. The latter, that is, the annual percentage rate, on the other hand provides information about the Total cost of the loan. Both the debit interest and the applicable fees are taken into account. For borrowers, this means: Always compare offers with the effective interest rate. Only then is it possible to compare the actual total costs of the offers.
Runtime and repayment right choose
There are some criteria that are particularly important in a construction loan comparison. For example, the fixed interest rate. Lenders and borrowers agree on a term upon conclusion of the contract. For this period, the interest rate does not change. The length of the fixed interest period varies and is usually between 10 and 30 years. For a long interest rate, borrowers in low-interest phases must expect an interest premium.
The repayment determines what percentage of the loan the borrower has to pay back each year. After the maturity usually remains a residual debt, which is repaid with a follow-up financing. It is also possible to complete a Volltilger loan. The borrower then pays the loan back in full within the term. The rates are correspondingly high. Borrowers are well advised, however Amount of repayment to adapt to the individual financial situation, to avoid payment difficulties from the outset. This requires, before the completion of mortgage lending to analyze their own financial situation. On this basis, it is important to choose a proportionate repayment amount that is not too high and not too low. Who only repays with 1% or 2%, for the debt moves into the distance. There are also interest rates for a longer period. In addition, nobody knows how future interest rates will develop. If interest rates rise, follow-up financing can be very expensive. Especially in periods of low interest rates, it is often worthwhile to conclude a so-called forward loan and secure the currently favorable interest rates for the future.
Monthly rate is consistently high
A home loan is usually through consistent monthly payments repaid – the so-called annuity. The installments consist of a repayment and interest component. The amount is based on the term, the selected repayment rate and the agreed interest. For some providers, it is possible to adjust the installments for free during the term and thus react flexibly to changes in the financial situation – a not to be underestimated advantage. Because to avoid payment difficulties, it is particularly important that the repayment amount fits the current financial situation.
Do not forget additional costs
Anyone who takes up mortgage lending will not only have to repay the loan and interest. There are also some additional costs. For example, for the broker, the notary and the entry in the land register. If the choice falls on the construction of a real estate, borrowers must reckon with further loads and take into account all construction costs in the financial planning. Tip: Many providers provide computers on their websites to calculate the total possible costs of mortgage lending.
Mortgage and equity as collateral for the lender
As with any form of credit, the creditworthiness of the borrower is also crucial in mortgage lending. To verify this, providers typically conduct a Schufa query that provides information about the applicant’s creditworthiness. In addition, most banks require salary statements and a secure income. However, as borrowers sometimes lend enormous sums of money to mortgage lenders, banks require additional collateral. So it is common for the financed property as security for the bank to deposit. A notary notes a mortgage in the land register. If the borrower is no longer able to pay the mortgage installments, the bank can pledge the property and thus recover its paid-up mortgage lending amount. However, if the loan is fully paid, the mortgage will be canceled.
As with any form of credit, the creditworthiness of the borrower is also crucial in mortgage lending. To verify this, providers typically conduct a Schufa query that provides information about the applicant’s creditworthiness. In addition, most banks require salary statements and a secure income. However, as borrowers sometimes lend enormous sums of money to mortgage lenders, banks require additional collateral. So it is usual that Acquired property as collateral for the bank to deposit. A notary notes a mortgage in the land register. If the borrower is no longer able to pay the mortgage installments, the bank can pledge the property and thus recover its paid-up mortgage lending amount.
It is also common for borrowers to contribute equity to the financing. This means that they pay part of the total costs themselves and thus the required loan amount is smaller. Banks usually pay for this outlay with cheaper interest rates. Mortgage lending without equity is also possible, but is often given higher interest rates due to the lack of collateral.
Mortgage lending is versatile
With mortgage lending prospective homeowners can not only finance the purchase and construction of a property. If you are already the proud owner of a house or apartment, you can also apply for the construction loan Renovations and modernizations use. And that is worthwhile even at lower sums, such as z. As a renovation may be necessary: A mortgage lending comparison often shows better conditions for low loan amounts than a conventional installment loan. So if you want to do work on home ownership, you should first ask if it is possible to pay them with a home loan and then make a construction loan comparison. However, it is usually not necessary to obtain a mortgage under 50,000 euros. Such sums are usually only given to banks as conventional installment loans.
In addition to the renovation and modernization, construction loans can also be used to finance Holiday or commercial real estate be used. Even smaller projects, so-called Tiny Houses, are becoming increasingly popular. Who plans to buy a property, then to this rent, can also take up mortgage lending. What should be considered in the respective project, interested in the guide real estate financing. Those who would like to inform themselves specifically for the purchase or construction of a house, learn a lot of worth knowing in the article house financing.
Comparison of mortgages helps to find the right offer
The purchase of real estate is a decision for life. When planning this project, prospective homeowners should not leave anything to chance. Good financing is especially important. In addition to budget planning, a detailed construction financing comparison is also part of the decision-making process. According to the personal possibilities and wishes, mortgage lending can be better or worse compared to another offer. But in principle, the more careful the planning and the comparison of offers, the cheaper and more relaxed mortgage lenders can fulfill the dream of owning their own home.
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