Important information for construction loans and follow-up financing

If you want to buy a house or a condominium or have already done so, you should regularly inform yourself about the current mortgage rates. Because there are different financing options, which are also feasible for existing mortgage lending. Because, if the interest rate level falls, one should consider rescheduling or a forward loan. As a result, a lot of cash can be saved. Even if a construction financing is pending, you should be sufficiently informed.

Under the consumer is explained exactly what a forward loan is. Because often consumers can not start with the technical terms all too much and have to inform about this first. Therefore, it is advisable to take the time and get all the important information under a given Internet address. A forward loan can be concluded up to 60 months prior to utilization. Because it is a so-called supply loan, which is often used as follow-up financing.

However, one should consider the following before concluding a forward loan:

However, one should consider the following before concluding a forward loan:

  • higher interest rates than an annuity or mortgage loan
  • relatively high interest and interest premiums are due
  • you remain bound to the forward loan
  • Termination is not possible

If the forward loan is not used, very high costs can be incurred. Because here often compensation for the non-acceptance of the loan is required. Therefore, you should only make a forward loan if you can be sure that the interest rate will fall. Or even if the follow-up financing is due shortly, so that the consumer takes the forward loan within 3 – 6 months. Because the costs incurred and interest before the forward loan is claimed, are already relatively high book.

Often, however, a forward loan is worthwhile if you can make a special repayment on the existing mortgage loan. Because if the originally completed financing interest rates are much higher, you can quickly save a few thousand euros. However one should inform oneself exactly whether a special repayment, without financial losses, is possible. The advantage of a forward loan is that the interest on the contract is binding up to 60 months before the claim.


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