Financing calculator real estate loan

You can find out how such financing is and what needs to be considered in our comprehensive guide, which you can find below. You will also learn when and how you can get out of a real estate loan agreement after it has been signed and which bank fees you are not required to pay – or where you are entitled to a refund. The decision for the right real estate loan has to be made. The choice of financing partner must not be premature when looking for real estate financing. Building society calculator to determine the optimal financing.

Mortgage lending calculator compared to real estate loans

Mortgage lending calculator compared to real estate loans

Real estate investments – whether for the purchase of apartments or the construction of houses – are still in demand. An article by Capital Lende mentions several experts who have assumed that interest rates will remain low for the time being. In any case, the time frame for financing the construction costs is now considered to be particularly advantageous. Experts recommend a balanced financing mix, long loan terms and high repayment rates so that the follow-up financing does not become an overwhelming burden.

Due to the continuing boom in real estate in Germany, residential property prices rose here and there, but this is viewed as standardization. There are currently no signs of a bubble, but the low interest rates are likely to cause some homeowners or buyers to overestimate their financing options, the daily Die Woche warns.

The follow-up financing could become problematic without a sufficient equity component after the end of the fixed interest period, especially if too little was repaid in advance and the interest rates rose. Some credit institutions reward a higher equity ratio with even lower interest rates. With a minimum saving period of 12 to 24 months, it could still pay off to start building to take advantage of the currently low interest rate on a cheap real estate loan.

Ensuring Cheap Interest Rates With Long-Term Loans If you want to pay for a property with a loan now, you should keep to the target date as long as possible. If the end of the fixed interest period is accompanied by an increase in interest rates, follow-on financing can be jeopardized. A longer fixed interest period is often only slightly more expensive for the borrower and gives him five to ten years to determine a suitable date for the follow-up financing.

In addition, experts advise in the current environment of interest to use the highest possible repayment amount – provided that the amount of life expectancy allows.

Construction finance and construction grants

Construction finance and construction grants

Under this heading you will find information on various key issues in the area of ​​construction cost financing and support. In parallel with the coming into force of the amended Energy Saving Ordinance (EnEV) 2014, which further raises the bar for the energy values ​​to be met by building owners and renovators, Fine bank extended its reform program “Energy-efficient renovation” as of December 31, 2016.

The Federal Government promotes energy policy advice on the basis of the “Guideline to support energy policy advice in municipal residential buildings”, which is monitored by BAFA. On August 1, 2016, BAFA expanded its offering with a new subsidy. This is an incentive to modernize the existing heating system with low operating costs.

But the builders of that time have grown old, and when they have grown old, their requirements have also changed: In most cases, the problem of home finance always arises when planning a space. All variants should be compared with each other in order to obtain cheap equity.

Most homeowners do not know that the accumulated fund assets of the Riester pension can be used for home finance. The insured can choose to withdraw all or part of their savings and thus finance their own home. Fine bank offers both the owners and the owners a wide-ranging support program, which is mainly supported in the form of low-interest and repayment-friendly loans.

Because it is both an increase in the living quality of every person and a cornerstone for carefree living in old age, the Free State supports the establishment or acquisition of its own property in different ways. Many real estate buyers, builders and renovators are supported by KfW.

Everyone is talking about building savings today, because it has never been so cheap to pay to build or buy a property. However, such a project is still the largest financial transaction that most people go through in their daily lives. But what needs to be considered when it comes to building financing in order to keep the expenses as low as possible in the end?

In this article, there are now some pointers that can be used to shoulder construction cost financing. The global financial market crisis of 2008 and especially the US real estate market, which collapsed like a charity house and drove many people into homelessness, made the European Parliament think just as much as the fact that some of the EU member states almost went bankrupt have passed over and had to be “rescued” for years.

His goal was to prevent debtors from being overdrawn by their financial institution when entering into a real estate loan agreement and from being able to face serious economic problems. It explicitly refers only to private customers, but not to commercial property loans. As soon as a property is discovered, the purchase decision is usually made quickly.

Low interest rates for building loans and advantageous land or property prices are the essential success factors that inexperienced people associate with the desire for their own home. Only if you are well aware of your economic situation can you find a solid basis for deciding which construction projects you can really develop. Sufficient equity capital is required to purchase a property or build your own home.

The cost-effective construction cost financing, which is tailored to the individual life situation of the customer, is the success factor in realizing the goal in life. As in other areas, technical terms are also used in building finance. We have been taking care of the property developers since 1995 and it was extremely difficult to finance housing construction without a loan.

When it came to construction advice, we also found that the advice is often very bad: While construction consultants and bank consultants usually give good advice on construction advice in practice, the advice from home sellers is often quite bad.

How to successfully buy back credit?

The repurchase of credit is a financial operation which can prove to be very advantageous when it is done intelligently. To successfully buy back credit, there are 5 steps to follow in order to present a good file to your bank and thus be able to buy back credit on attractive terms.

 

Gather sufficient information on the repurchase of credit

Borrowers have struggled to assimilate the concept of credit repurchase when it first appeared on the market. They then adapted it when they discovered its multiple advantages. However, certain information gaps hamper the complete assimilation of the concept, in particular with regard to banking concepts and the steps to be taken.

 

The advantages of buying back credit

The advantages of buying back credit

The repurchase of credit remains the preferred solution of the majority of the borrowers when it is a question of regrouping the credits, of reducing the monthly payments to be repaid, and thus of preserving the financial stability of the borrower. The constitution of a solid file is however essential to carry out the negotiation well and to obtain the green light from the credit institution.

The credit buyback simulation

A credit repurchase transaction consists of several stages. None of them should be overlooked. The borrower is first required to check his financial situation before making his request. The knowledge of credit seekers in matters of finance and banking concept is generally basic. It is therefore advisable to use credit buy-back simulations. Several simulation sites are present on the internet, they offer simulations and advice which can be very useful in making a good choice.

A solid file to present to your bank

After choosing the most suitable loan buyout, it is now a question of building a solid and complete file. This file must include all necessary and compulsory supporting documents. The credit institution may require the inclusion of additional supporting documents for certain specific credit redemptions.

The credit buyout validation step

The filing of the loan buyback request file is followed by a validation step where the bank intermediary and the broker carry out an exhaustive check of the file to verify the conformity of the documents. They are then responsible for making a report which will be the last green light to release the loan.

 

The five stages of buying back credit

credit loans

The procedure for obtaining a loan repurchase consists of 5 steps:

  • The fulfillment of the request – A signature of a capital search mandate is sent to the credit institutions by the broker representing the applicant. The legal procedure is thus launched with these establishments. No commitments or additional costs during this first stage;
  • The proposal of a solution The banker in charge of the file offers a solution for grouping loans adapted to the applicant’s needs;
  • The assembly of the file – We then proceed with the assembly of the credit repurchase file, including the supporting documents required by the broker, among which we find:
    • Photocopy of the applicant’s national identity card;
    • Amortization tables for outstanding loans;
    • Supporting documents of the applicant’s income;
    • Bank statements
  • Signing the contract – The applicant signs the credit repurchase contract if the offer seems attractive to him
  • The release of funds – After a withdrawal period, the funds are finally released. During the withdrawal period, the borrower has the right to re-examine the offer and to refuse it if he changes his mind.

Credit card cancellation. How to terminate the contract?

A credit card is a convenient means of payment. When paying with it, we use the limit granted by the bank. You can terminate your credit card agreement at any time. How do you opt-out of your credit card? We present a sample statement of resignation from a credit card. 

How do you opt-out of your credit card?

How do you opt-out of your credit card?

Withdrawal from the credit card is tantamount to the termination of its contract. The agreement may be terminated by both parties at any time.

The owner of the credit card may terminate the contract without giving any reason and without incurring additional costs, with one month’s notice. He can also opt-out of his credit card by resigning from the extension of the contract for another period. An order to resign from card renewal should be submitted no later than 30 days before the expiry date of the card being used.

What if we want to terminate the contract immediately? The cancellation of a credit card without a 30-day notice period is payable. Exemption from these costs is possible only if the terms of the contract change by the bank. If the modifications are not favorable, you can terminate the contract with immediate effect without incurring any fees.

Cancellation of a credit card in most cases requires a written notice of termination. The declaration of termination can be made in person or sent by post. Important! If the card is connected to a joint bank account, all co-owners must agree to resign from it.

Closing a credit card in online, mobile or telephone banking

Closing a credit card in online, mobile or telephone banking

Some banks also offer the option of closing your credit card in online, mobile or telephone banking. In this way, we will give up credit cards, among others at Good Finance, E-Money and Good Credit Bank. We will complete the formalities without leaving your home, alone or with the help of a consultant if we close the credit card when contacting the hotline. If in the future you want to use your credit card again, choosing the best offer will facilitate your credit card ranking.

Opting out of a Good Finance credit card

We present an example of how to close a credit card at Good Finance. Cancellation and termination of the credit card agreement at Good Finance is possible in four ways:

  1. Call the helpline on 0 801 300 800 or 42 6 300 800 and inform the consultant if you want to terminate your credit card agreement or not to renew it.
  2. Enter electronic banking and in the card details select the option “closing credit card”.
  3. Personally, go to the branch and fill out a specially prepared form or provide details to the consultant who will complete the application and give it to you to sign.
  4. Send termination of credit card agreement by mail.

Regardless of how you close your credit card after the notice period has expired, please contact your bank and ask for confirmation of the cancellation of this financial product.

What to remember when terminating a credit card contract?

After submitting the letter, the credit card holder is required to:

  • credit card repayment. The entire debt, together with interest and other costs resulting from the contract, should be returned within 30 days of its termination. In order to determine the amount of debt, we should contact the bank,
  • permanent destruction of the card, i.e. cutting it along the magnetic strip and the microprocessor (chip) or for returning the credit card and additional cards issued to the main credit card, e.g. for a child (from 13 years old), wife or husband.

If the credit card is not repaid, the bank has the right to charge interest or not to close the credit card.
After terminating the credit card agreement, the bank returns any overpayment to the customer’s personal account. There is no obligation to refund any fees charged, including the annual fee or the fee for issuing a credit card.

Withdrawal from credit card – letter template

A pattern of termination of the credit card agreement can be found on our bank’s website. If we want to cancel the card, we download the document and complete the application, providing the required data, i.e.

  • first name and last name,
  • Social Security,
  • series and number of ID card,
  • contact details,
  • credit card number,
  • date of termination of the credit card contract.

We have prepared our own pattern of termination of the credit card agreement: (the model in a separate file)
The completed application must be signed. The 30-day notice period starts on the day the letter is sent to the bank.

When we decide to opt-out of a credit card at a bank branch, we do not have to complete the letter ourselves. We go to the selected institution and complete all the necessary formalities there. Remember to consent to the processing of your credit history.

P2p Loans – tips for quick and easy implementation

The first German and always up-to-date P2P platform rating on Germany’s most popular blog for P2P credits. But above all, a certain familiarity with the p2p system. In this blog, I want to help private investors make the right P2P loan investment decisions. My personal investment blog, how I earn more than 20% annual return with P2P credits, information about the P2P providers, investment strategies, bonus etc. I report extensively in my guest article on the ETF blog.

Imprint – P2P credits

Imprint - P2P credits

As part of my free time, I regularly compose and publish new publications, moderate the Big Break podcast and manage some other small internet projects and blogs here since spring 2016 on passive income and private P2P loans. In my blog, I would like to bring you closer to the importance of passive income and give you tips for quick and easy implementation.

Every month more than 40,000 people follow my reports and I have already researched for you in the Baltic States (where most of the platforms are). Where do I get my books and blog from? In the next few days my life path changed by 180 degrees. The family classic was over and I suddenly had time and costs for online projects, travel activities and many other things that had never been possible in this way before.

In my marriage I already liked the old motif books (really ancient, 100-200 years) and even then (inspired by another writer and friend) I had the idea to translate the old and copyright-free works from German and to reissue them . After the division and hangover tours through Asia, I changed my own age all year round, optimized my time (which I suddenly had again) and went straight to work, although I still had no idea how to publish a book .

This is followed by the two-part work, which ultimately forms the basis for this blog, which has existed since January 2016 and thus developed from my work as an author. In cooperation with our P2P community member Tobias Linzers, a new work on “Saving Money” was published last year. In the meantime, further works have been published and set to music.

Because I am now very familiar with self-publishing, I have been looking after “young authors” in realizing their book launches from A to Z for some time or even acting as a publisher of the books, and the experts only do what they do best best can. Put your ideas on paper. Including the Because I am a more self-contained person, I noticed that the typeface suits me very well and fits my other advantages.

Of course, you can also take something with it

Of course, you can also take something with it

A notion that I had when I was trying to break in. Countless people design their ideas from front to back and in the end nothing happens.

The second tip for you: put your ideas into practice right away! In retrospect, not even the salary / passive salary in the whole thing is so exciting, but the increase in experience. For example, what I found out through the publication of books, how many interested people I met, and what resulted from it is simply a mistake.

However, the familiarization curve is not as high as in an online company, because most of the time, like me, you are focused on a special field. With me it was the small choice between the first and second day when I start to make more of my private life than it seems possible, or the second day when I sat in front of the horsepower and with the gamble gallop 4 played (and that’s my real seriousness).

Some of you always ask me what my current P2P portfolio status might look like and on what basis my salary is. If you want to learn more about the different P2P platforms, you can get an impression in my P2P platform overview. Occasionally you will find P2P platforms here that are not yet covered by contributions.

Then it is usually the case that I believe that the P2P platform is not yet far enough to show it to the general public. Share with the boss – How the 3 A’s help determine your age! Shares with Head – 12% income with P2P loans? Because with this blog I want to be at the end of world history in the long run and I would very much like to see you subsidize my retirement.

Our loan offer is particularly cheap and flexible

No credit bank today will want to do without such a reference. Consumers don’t just look at low effective interest rates. They also want the freedom to redeem the loan in whole or in part during the term, provided that their personal and economic circumstances allow it. In order to meet the wishes of their customers, banks have adjusted their conditions in different ways:

Special payments, early loan repayment, installment deferrals, and deferrals, repayments and rate increases, loan extensions, and extended cancellation rights are customary side agreements in loan agreements.

Tips:

  1. Pay attention to possible costs, which can sometimes be hidden. Compare different offers with the same free flexibility features. Choose the offer with the lowest effective interest rates.
  2. There are banks that offer open or hidden two “types of credit”: a “normal version” and a flexible “deluxe version”.

Flexible repayment: special repayment and early loan repayment

Flexible repayment: special repayment and early loan repayment

The special repayment is a repayment payment in addition to the regular repayment. Special payments during the loan term can have two effects. If the monthly loan rate remains the same, the term is shortened and the total cost of the loan is reduced. However, it is also possible to reduce the monthly installment payment with the same term.

Most banks only offer the first variant. Some banks allow voting rights. From an economic point of view, a shortening of the term should always be chosen.

Banks do not allow special repayments without limit. The following restrictions are common:

  • The absolute amount of the free special repayments can be limited (for example up to 80 percent of the remaining amount)
  • The number of possible free special repayments in a certain period can be limited.
  • A waiting period is also possible (… not before the end of a year after the contract is concluded).
  • The amount of individual free special payments can be limited.
  • A distinction can be made between free special payments that are only possible to a limited extent and special payments that trigger a prepayment penalty.

Special repayments and repayments are possible at any time. But they are free of charge only once a year in the amount of up to 50 percent of the remaining loan amount. Compared to other banks, this offer is still quite generous – despite the somewhat misleading wording.

Early loan repayment means the full repayment of the remaining debt before the term expires. In practice, it is an early termination. Few banks provide free loan repayment of the entire remaining amount. Some offer loan repayment against prepayment penalties.

Repayment: flexible installment payments

Repayment: flexible installment payments

The rate can be changed in different ways, for example by changing the term, through special repayments while maintaining the originally agreed term or through a subsequent additional agreement on a change in the rate and term. A change of repayment is a frequently chosen route, especially in the case of construction finance.

The borrower is granted an option by contractual agreement to change the agreed repayment rates during the fixed interest period at certain intervals within a specified margin. For example, it is stipulated that the borrower can change the repayment twice in a margin between 2 and 5 percent.

If the repayment rate is increased, more must be paid each month and the term is shortened. If the repayment rate is reduced, less has to be paid each month, but the term is extended.

While special repayments leave the agreed repayment rate unaffected and are a one-off process, the repayment change is permanent and can only be reversed by making another repayment change in the opposite direction.

  1. Choose offers that allow free repayment changes. Sometimes interest premiums are charged from the outset, or there are special fees for exercising the option to switch repayments.
  2. Make use of the repayment change only if your personal and economic circumstances change sustainably. In other cases, special repayments are more appropriate.

Suspension of repayment and postponement of repayment

Suspension of repayment and postponement of repayment

Customers can suspend a rate every 12 months. Postponement of repayment means that the borrower cannot start paying the installments immediately, but only one or more months after the contract is signed if he wants such a delay. If repayments are suspended or delayed, the period until full repayment is extended unless the suspended repayments are made up later with special payments. The result is an increase in the cost of the loan.

Some banks only grant a suspension of repayment after consultation. If a borrower gets into financial difficulties and can no longer pay the installments in full, he should always contact his bank in good time.

Most of the time, short-term repayments are not enough to get financial problems under control, and more fundamental solutions are needed. Under no circumstances should you close your eyes and simply stop making payments. In addition to other problems, a sustained delay in payment regularly leads to Credit Checker entries and negative creditworthiness.

Paynet Rush offers “business credit” to online retailers

The US payment service provider Paynet Rush will in future offer online traders the option of taking out a loan of up to $ 24,999 with the “Paynet Rush business loan”. Instead of a classic interest, the company charges a fee in the form of a fixed amount, which should be shown to the trader transparently when the application is only possible online. The loan and fixed fee are repaid via his incoming Paynet Rush sales. The trader receives a selectable percentage of 10 to 30 percent, Paynet Rush writes in a press release. The “selected dealers” offer is currently available for a pilot phase, and should be generally available from early 2019.

 

business loans

According to Paynet Rush, the allocation is ideally quick: The decision on the approval is made “immediately” after the merchant has defined the credit line and repayment percentage. Accordingly, the company informs him about the amount and terms of the loan “within a few minutes” based on the available data. According to Paynet Rush, the maximum amount of the loan is based on the sales volume of the applicant. The latter must have had a Paynet Rush business account for at least three months. The business has also had to exist for three months.

If the merchant accepts the offer, the amount will be transferred to his Paynet Rush account. When repaying, the dealer must then make a minimum payment of 10 percent of the total amount (loan plus fee) every 90 days. In addition, borrowers have the option to make voluntary special payments or to repay the loan early. Paynet Rush does not want to charge any additional fees for this. The current cap for the loan is also to be increased in the medium term.

 

bank

The “Paynet Rush business loan” is not a reinvention: Under the name “Paynet Rush Working Capital”, the financial services provider has been offering online traders in the USA loans since September 2013, in the UK and Australia since 2014. Since then, 500,000 loans have been granted to 170,000 companies, with a total volume of $ 6 billion. 85 percent of the merchants who repaid a Paynet Rush loan would take out another loan there.

For Paynet Rush, which has a Luxembourg banking license and is therefore approved as a credit institution within the EU, the step on the German market means the next expansion of its money business beyond its classic payment services. “With Paynet Rush business credit, we now also offer small and medium-sized retailers a financing solution. This gives them the resources they need to quickly and easily expand their business, “says Emmanuel Gutnen, Paynet Rush Managing Director of the DACH region. At the same time, however, one also wants to bind retailers more closely: whoever repays a Paynet Rush loan stays bound to the company until repayment and is also interested in the fact that its customers use the service.