Category: Mortgage

Around the 20.04.In 2015, the interest rates for a construction financing with a 5-year commitment were at a historically low 0.4 percent. In the course of June, they rose relatively quickly to ca. 1.3 percent increase. Does this now mean an interest rate turnaround in construction financing? The fact is that yields on government bonds – always an indicator of the development of mortgage rates – have also risen significantly. Sank the yield on the ten-year federal bond of approx. 5.3 percent in 2008 until mid-April, it has multiplied since then and is currently around 0.8 percent. Of course, there is no reason to panic yet. Nevertheless, an interest rate turnaround in construction financing is likely on the horizon.

Interest rate turnaround in construction financing at low levels in the medium term

Even if the expert voices increase that an interest rate turnaround in the construction financing is initiated, this will turn out on a very low level and will not reach the 2 or even 3 percent line for a long time (with 5 year fixed interest rate, good credit rating and average loan-to-value ratio) – in comparison to the interest rate in 2008, when this construction financing still cost around 5 percent. It will be at a very moderate level in 2015, because the indicators such as the current monetary policy of the ECB, the still rather weak economic development in Europe and the U.S., and the inflation figures do not point to a massive change in interest rate policy. Nevertheless, this interest rate turnaround in construction financing is an indication that the historic low interest rate periods are slowly coming to an end.

For the purchase of a house or a condominium, many people use construction financing. With a certain equity portion complications arise only rarely. Thanks to the so-called full financing, however, it is also possible without equity to fulfill the dream of their own four walls. But how does full financing or 110-percent financing work?? What advantages and disadvantages await the borrower? And what other things to look out for in home financing with no equity to avoid problems?

The times when it was virtually impossible to afford your own home without your own money are long gone. Because nowadays many banks offer the possibility of a construction financing completely without equity capital to carry out. The entire purchase price and, depending on the type of full financing, all ancillary purchase costs, such as notary fees and broker commission, and costs for the entry in the land register are financed by the credit institution with a real estate loan. However, home financing without equity is subject to certain requirements that the borrower must meet. In addition to the advantages, there are also disadvantages and risks that should not be underestimated in the case of construction financing without equity capital.

Completely unexpectedly, interest rates are falling again. In 2018, it was clear to bankers and construction finance experts that bond rates would rise again this year. In fact, the assumption at the time was just under one percent. The interest rate trend in 2019 is basically pointing in the other direction. What this means for construction financing? Since the development of interest rates on construction loans is dependent on the development of federal bonds, construction loans will continue to be exceedingly cheap in 2019.

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Buying your first home can be exhilarating and a tad intimidating. You’re likely somewhat familiar with the steps in the homebuying process—shopping, negotiating, mortgage-underwriting evaluation, closing. However, before you can make it to the closing table, you’ll have to get financing. Many first-time homebuyers aren’t flush with cash, so any assistance is welcome.

Fortunately, there are several first-time home buyer loans that can get you one step closer to unlocking the door on your first home. Many loan options for first-time homebuyers have lenient down payment requirements, and some are aimed at low-income borrowers.

With most depots one can let lend its deposited securities fast and uncomplicatedly. A securities loan (also Lombard loan, securities account loan or securities credit) is set up as a credit line on the securities account and is similar to an overdraft facility:

Interest accrues on a securities loan only for amounts used.

I want a house! However, many people have no idea how much they can borrow for a mortgage.

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The mini-loan is a loan for which only micro-amounts can be considered as the disbursement sum. On the one hand, this has its disadvantages, as you cannot make any big financial leaps with the money, but it also has numerous advantages. We will go into these as well as the aspects that you absolutely have to consider when applying for a heating system. Beforehand: it is usually relatively uncomplicated to apply for a mini-loan and, moreover, to get it confirmed. Therefore, it is a so-called easy-to-apply loan.

There are some aspects that set this loan apart from the short-term loan, for example – even though both forms of loan have in common that it is usually a microsum that is paid out when the loan is approved. While the next paragraph will go into more detail about the specifics of a microloan, it is worth emphasizing up front that this is a very unique loan model. One reason for this is that this loan has only a limited disbursement sum.

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