Lending to finance real estate should not be premature. Borrowers go this long-term commitments to their bank and to become informed about the possible consequences of borrowing.
Once the decision has been made to purchase a property through credit, the work really starts. Which is the best and cheapest real estate financing ? Which conditions are appropriate for such a loan ? To determine is the right real estate loan by comparison.
Use our free calculator now and find the best real estate financing by comparison
In this guide you will find out which conditions in the search for the correct mortgage lending to pay particular attention and how to find the best loan.
In short: information on the comparison of real estate loans for fast readers
- Use the above calculator to get a first impression of the market situation.
- Above all, pay attention to the level of the annual percentage rate of charge – unlike the tied interest rate, this value indicates exactly how much interest you have to pay in total for mortgage lending.
- Think carefully about whether you can regularly pay the specified monthly installments – if necessary, re- schedule the calculator for more appropriate results.
- Contact the provider of the best offer for you to discuss further conditions of mortgage lending.
These variables of real estate loans are taken into account in comparison
Enter the framework conditions for your desired real estate loan, the calculator provides a comparison of the best providers or banks. The following conditions are included :
- Effective annual interest and debit interest. The latter term denotes the interest rate, which is noted in the contract. With the annual percentage rate, all additional costs for the real estate loan are already included. This is therefore much more interesting.
- Amount of a monthly installment. Based on the interest, the amount of the annual repayment and the repayment period, this amount is calculated.
- Residual debt. You owe this sum to the bank at the end of the loan term – depending on the settings, this varies. If a residual debt remains open, a follow-up financing must be organized.
The offers are sorted according to the amount of interest. Below the offer you will find a sample bill.
After the comparison: A real estate financing consists of further conditions
If you have found suitable real estate financing thanks to a comparison, you can negotiate with the provider. Pay attention not only to the conditions displayed in the calculator.
Particular attention must be paid to the special repayment rights in the case of mortgage lending: Extensive unscheduled repayments allow you to repay the real estate loan more quickly to the bank, thereby effectively saving interest payments.
To set the calculator correctly for comparison
But what if the determined conditions of the computer do not suit you? You have the option to get a better tailored comparison by adjusting the configuration options.
The monthly installments are too high?
- Decrease the amount of the eradication. This, however, delays the repayment period for the real estate loan.
- Reduce the repayment term. But beware! Currently, interest rates are very low. The shorter the repayment term, the sooner the bank will be able to adjust upwards and thus raise the installments again in a shorter period of time.
The interest is too high?
- Reduce the term of the real estate loan. Bear in mind, however, that this entails a not inconsiderable risk of having to pay significantly higher interest rates in a few years’ time.
- Reduce the mortgage lending rate. The more equity you can bring in, the lower the required interest rates of the bank will decrease.
But think carefully about your details: Can you pay the corresponding equity ? Do you want to extend the loan repayment to several decades ?