Tips on financing

Any funding should be well thought out and any ambiguities should be eliminated in advance. Then nothing stands in the way of successful financing, which could jeopardize the dream of your own home. So that it works with the financing has some important tips for you summarized.

1. Check your own budget

The first step to owning your home is checking your personal financial resources. It is recommended at least 20% of the total financing through equity cover up. Equity is e.g. for savings, home savings or securities. In extreme cases, even financing of more than 120% of the mortgage lending value is possible, but this is less recommendable because increased costs are to be expected. A rule of thumb: The higher the equity ratio, the cheaper the financing.

2. Choose a low annual percentage rate

The effective annual interest rate determines the interest cost of your loan. Therefore, take a close look at all financing offers and use them a low effective interest rate. From effective interest rates, as well as the current repayment finally results in the amount of the monthly loan installment. Cheap financing can be found today especially on the Internet.

3. Ensure a high current eradication

With the current amortization, the loan is gradually repaid when paying a loan installment. The higher the repayment, the faster debt can be achieved. The amount of the repayment thus significantly influences the amount of the total cost of your loan.

4. Take advantage of special repayment options

Due to a special repayment, there is the possibility to repay larger lump sums to the lending company during the contract period. No prepayment penalty for unscheduled repatriation has to be paid. Keep this option open, because in the case of inheritance or due date of a savings contract, you can immediately repay part of your loan.

5. Restrict the loan amount

Calculate exactly what resources are needed and Choose the loan amount due. If you are able to cover part of the financing project with equity, you can take advantage of these opportunities. The better the financing will be in the end.

6. Choose short maturities

To save unnecessary lending rates, Choose the shortest term for your financial framework.

7. Decide on the right interest-rate period

The interest rate term is the period in which the interest amounts for your loan remain constant. Usual periods are at e.g. 5, 10, 15 or 20 years. In the binding period, pay attention to the personal repayment performance as well as the current interest rate market. If the interest amounts are low at the conclusion of the loan agreement, then choose a long term. With high interest rates, you should choose the shortest possible term, as experience shows that interest rates will fall again.

8. Take advantage of the state subsidies

There are various government funding programs, which help you realize your dream of your own home. In order to benefit from the state funds, you should in any case be sufficiently informed in advance.

9. Do not put everything on a card

With every financing you should go for extra protection to spread risk. In addition to equity and loans, flexible and interest-secure financing products can also be included in the financing concept. These can then flexibly compensate for any bottlenecks.

10. Compare the financing packages

The best financing tips are worthless, without a thorough comparison of offers. It is best to get several offers and get individual advice to choose the most advantageous loan for you.

Similar sites

  • Tips for drilling metal and steel
  • Blow out eggs - instructions and helpful tips
  • Tile grout - instructions
  • Home Ownership Renovation: 8 Financing Tips
  • Homebuilding with own contribution: Tips for cost savings through own contribution
  • Save energy: tips for more energy efficiency in the home
  • Tips for a natural garden design with wildflowers
  • Health, Environment and Barbecues - Basic and Environmental Tips for the BBQ Party
  • Money saving tips for home improvement
  • Carnival Makeup: Tips and Hints
  • Apple harvest in autumn: tips for harvesting
  • Create a garden poster
  • Defrost the freezer properly
  • First own apartement
  • cat litter