The admission of a real estate loan must usually present its equity , some banks wish to grant full funding.

Anyone who dreams of your own home, be it a condo or a house and does not have enough equity, is a borrowing can not fail. Even with only a few banks provide collateral for a loan for real estate full funding. In general, an equity capital is 20 percent of the purchase price required for a mortgage. But even if this equity is available, the banks require more collateral (life insurance, valuables, securities, etc.). It is true that the more assets there are, the cheaper the loan. There are several ways to finance real estate, which are described below.

Real Estate Financing in full

There are banks, the loan guarantee of 100 percent of the property purchase price. The target group is young families with high incomes, which it was not possible to save corresponding equity. Full funding can be quite advantageous, however, has two disadvantages. First, interest rates and repayment rates are very high, secondly, suddenly rising market interest rates and changes in income (unemployment, prolonged illness, divorce) can lead to foreclosure of the property. Tips and requirements for full funding can be found on the online portal.


Construction loan and mortgage

Who wants to build his own house or buy a condo and want does not have all of the equity increases, usually a building or real estate lending credit to complete. It is a long-term loans with fixed interest rate of between five and 15 years. This means that the rates are paid during this period in equal amounts (which includes interest rates and repayment). Financial test of foundation were test monthly information on the best construction and real estate loans and on various online portals can charge interest rates comparisons are made. Prerequisite for the construction and real estate loans are at least 20 percent equity and other income, depending on various securities. The higher the equity and the income, the less collateral is required. Officials generally receive more favorable terms.

Housing loans

At the conclusion of a savings contract , a minimum savings amount is fixed, which will have accrued over a fixed period and at a specified percentage. This is bigger savings amounts to 50,000 €. The building society is obliged to account for between three and ten thousandth of the savings agreement, set to save away and indeed for several years. The term of the savings agreement depends on which rate was chosen in the contract. At a standard rate, for example, it is 18 to 20 years, but are being saved up only eight years in length. There is also a lower maturity, these vary from bank to bank. If money is needed before the end of the term for a property purchase, the investor receives the missing part of a building loan. He even has a legal claim to it.