Home Loan in 3 Easy Steps
Real Estate Loans
Each property owner of his property through a real estate loan, is likely to be with the end of the initial rate period before the issue of port financing. Reason: A potentially significant residual originally recorded by the real estate credit is still available and can not
The timing of the follow-on financing is usually faster than you think, but is obviously dependent on the rate originally agreed time limit for the real estate loan. The date may, after 5, 10 or 15 years rate achieved in almost any other period, but it is also conceivable.
Not only the timing of the follow-on financing, but also the number of follow-on investment for the same property is of course dependent on the length of each selected fixed rate periods during the duration – and other factors, such as the rate of the real estate credit is based, and the pace of eradication.
You should follow-on financing in its importance as a recapitalization, because the former Altvertrag has expired and the borrower is free to the market for new offerings for real estate loans around.
Anyone who plans on time and not only the so-called renewal offer (rolling) through the existing bank is awaiting reserves the reins in his hand. Some banks offer your existing customers is worse in terms of follow-on financing than the new customers with new real estate loans. And even more often in the alleged exploitation of trust on the last push. This leaves the client little or no time for a comparison.
For those whose real estate loans within the next 2-6 months to expire, states that: Act now and be a follow-on financing to bid for third-party intermediaries. Everyone should know that the new main bank’s financial backgrounds of potential customers have yet to clarify and build a picture of the property must make to create a binding offer for the connection to financing. This requires some time.
For those whose real estate loans over the next 1-3 years remaining, it means the date of the deadline of your real estate loan and reserve well ahead of the expiry of the Altdarlehens at least one to two alternative offers to obtain follow-on financing. The timing of the offer can never obtain too early, because the rule saves the new bank in a late acceptance of the property before the loan terms. The provision can be over a period up to 3 p.m. to 5 p.m. years.
How much you may save the following example shows connection to the financing:
For a mortgage of 100 thousand, a rate of 5.5% and 2%, the eradication rate of 625 EUR. If the borrower, but an interest rate of six per cent cheaper, and is consistently the interest savings shares in the redemption, the outstanding balance of the real estate loan after 10 years by as much as EUR 6,000 lower. In a follow-on financing of 200,000 euros makes this even from 12,000 EUR.
A hint that you should heed: if you have a third bid for the port has received funding and its former bank on the lower mortgage attention, often gets a response that the fees at the bank exchange rate advantage of the real estate loan devour. That’s true in general not. The cost for the land transfer, notary and court costs are on average 400 to 500 euros for a follow-on financing of 100,000 euros. Other hand, however, brings a by 0.5 percentage points lower for the same mortgage loan amount in 10 years an interest saving of 6,000 euros as calculated above. The higher the loan for the follow-on financing, the more they pay the bill.
The timely demands for a so-called independent real estate financing can give you some financial savings and save you much time. The specialists there have usually access to real estate credit terms often several dozen banks and select the appropriate bank and offers the best connection financing.
