This is how a home loan without equity + subsidies works
You have to build a house and borrow money for it? Then, like most people, you will think about a home loan. A home loan is traditionally granted by building societies, banks or savings banks. They are the classics among the types of loans for real estate financing. What you should look for and how to best choose your home loan is explained in this article.
Pay attention to the repayment plan of your home loan
Loans intended for new construction should be chosen wisely. You are planning to buy a condominium or an already completed house? Then the purchase price is already fixed. The situation is different with the construction of your own home. New builds are usually hard to calculate in advance – especially if you want to have a home loan with no equity.
During the planning mistakes can be made or it comes during the construction phase to unforeseen surprises. If you calculate the funding incorrectly, bottlenecks can occur. The result? It threaten expensive refinancing or a refinancing that may be associated with other costs!
A low mortgage lending rate makes the home loan at the debt restructuring cheaper
How expensive a loan actually gets depends on various factors.
- interest rate
- additional costs
- Loan scope
All these things play a big role here if you want to borrow money for a house! You should therefore attach great importance to comprehensive and professional advice.
You are thinking about taking out a home loan? Use our mortgage calculator.
Credit for house financing
Take advantage of our free premium list. Find lenders who are also able to offer a home loan without investing equity.
At the moment we have a low-interest phase, you should take that into account! Otherwise, it may increase your future installments if the rates of follow-up financing are higher than they currently are. Use our home loan calculator to find the best real estate financing and compare current offers.
Another advantage: If the loan is repaid higher at the beginning, the residual debt that is due after expiry of the fixed interest period is significantly lower.
How to pay off your home loan properly
The agreed repayment rate affects the repayment period and thus the cost of your loan. The faster you pay interest in the role of the client, the lower the term of your loan. The result is very pleasant: the years in which you have to pay interest, shorten!
Example: A loan of EUR 100,000, with a 1% initial repayment, with a nominal interest rate of 4.5% interest is paid only after 38 years. On the other hand, if you were to choose a repayment installment of 3% as a borrower, it would already be debt-free after 20 years and would have saved you some € 1,000.
You want to know how many years you have to pay off your loan? With our construction credit calculator you can calculate how the term of the construction loan is influenced by the change in the repayment performance.
Your benefits of online home loan comparison
Use the numerous loan calculators that you find online. Almost all of them work the same way:
Enter all relevant data such as loan amount, duration and amount of monthly repayment and your income. So you can immediately see a result at which conditions you can borrow money for your house.
The loan calculator creates an individual financing plan including interest
- Spending on clothes
- Car expenses
In addition, you can calculate and compare the current interest rate level.
In this way, you can identify at an early stage whether follow-up financing can be considered after the end of the fixed interest period or not. You can then conveniently realize this in good time with a forward loan. So you probably secure a favorable interest rate, which comes very close to today.
These credit types are available to you
Before you submit a loan application, we recommend getting an overview of your options. The following offers are available:
The mortgage loan
It is the classic of home loans, which is secured by a mortgage. The mortgage, also known as mortgage loan, often offers favorable interest rates for the borrower.
In light of the current low level of interest rates, the interest rates for mortgage lending are no more than they have been for decades. With our real estate loan calculator you can compare current offers.
Comment: With the current low interest rates of the EurCenank, not only private consultants, but also building societies are increasingly recommending real estate investments.
Home purchase financing
Even the Federal Association of German banks advises consumers to take into account the current interest rates in the design of house financing. You should therefore implement this project sooner than planned.
The following applies: You save even more when you compare home loans. Our Real Estate Loan Calculator helps you compare cheap deals.
The annuity loan
It belongs to the group of mortgage loans and is particularly popular. The characteristics of this loan are as follows:
- A monthly rate is set in advance
- Monthly installments stay the same for the entire duration
- The installment consists of a repayment portion and an interest portion
- With each paid installment, the repayment share increases while the interest rate decreases
Other variants of home loans
In some cases, the forward loan or the repayment loan are also used. In addition, even a full financing is possible in which no equity is used – but this is worthwhile only for the few borrowers.
Our tip: Find a cheap home loan with comparison computers on the Internet!
The building loan
Here are two main types:
First, there is the house loan out of a current contract. Here is the austerity phase of the home savings contract has already ended and thus is entitled to the very low-interest loan.
On the other hand, there is the Bausparsofortkredit. Here a new contract is concluded. It must first be saved in order to take the loan later. Through an interim loan, also called trailer loan, the austerity phase is bridged.
Loan calculator Mortgage lending: Our loan calculator helps you to find a cheap mortgage lending.
The Bausparsofortkredit is usually used to secure a low interest rate over the entire term of the house financing.
As a borrower, make sure that the total cost and the effective interest rate are difficult to calculate and compare for this instant loan.
An important tip: When calculating a home loan, be sure to consider the total effective interest over the entire term of the offer and pay attention to the transparency of the offer.
The capital life insurance as a source of income
A rarely chosen constellation of funding is the insurance loan. A capital life insurance is taken out and then saved.
The money for the purchase of the house results from a pre-financing, which is repaid at maturity of the insurance by their distribution.
However, against the backdrop of the euro and the financial crisis and the turbulence on the capital markets, there are some risks associated with this type of financing:
- Substantial costs are only apparent after the conclusion of the contract
- Often, however, the consumer has been paying for years
- Under certain circumstances, the residual debt of the pre-financed property can not be paid
- Many borrowers have already lost their own home in this way
- This house financing is only suitable for people with a particularly high and secure income
Basically, have the entire financing plan calculated in advance by your tax adviser. Take into account all kinds of surprises that may come your way. How can you best do that? The first step to get an overview is the home loan calculator.
The promotional loan
If you are planning to buy a house or build your own home, there are many different state funding options available. These are the most important ones:
Loan from Intrasavings Bank
- Supplements according to the Homeowners Act (also called Wohn-Riester)
- Individual subsidies of the individual federal states
- Support at the local level
Low-income families benefit from subsidized loans
The focus is on low-interest property loans or subsidies. Depending on the family situation and state, maximum limits for eligible persons can vary widely.
Find credit for home buying & matching promotions
Are you interested? Use a counseling session with your local government to clarify key issues. In many communities, low-cost building plots are awarded especially for young families and entrepreneurs.
Also municipal loans with very favorable interest conditions are available here. If you are looking for building finance without equity, you will find further information in our contribution to the home loan without equity.
In addition, you will also find a home loan calculator that allows you to quickly and easily calculate monthly repayments.
Attention: The regional funding and the allocation of construction money depend on the budget of the respective municipality and state.
If the funds for the home loans are exhausted, borrowers have no legal entitlement to a promotion and may even go blank. The good news: There are many ways to finance a home.
Other lenders that can finance your home purchase even without equity can be found in our free premium list.
How to find a promotional loan
At the county and city administration, you can find out which funding programs are available in your immediate vicinity. You can also ask for the conditions that have to be fulfilled here. For listed buildings, there are also numerous support programs at provincial level.
In this case, it is advisable to first find out more about the conditions under which these subsidies are awarded to the monument authority or the relevant building authority of the respective municipality.
In principle, measures for the energetic renovation of buildings with particularly attractive building fabric are promoted.
Likewise, individual modernizations of all other residential buildings receive financial support. These may include the replacement of the heating technology, a new insulation or the renewal of the windows.
In addition to a low-interest promotional loan, Intrasavings also offers the borrower an amortization subsidy. This can often save high costs, since the loan period is shortened and not the entire loan must be paid.
Summary – you should pay attention to the loan for your house
Most importantly, is the so-called checklist. It may be worthwhile for future homeowners to rely on a real estate loan during home construction. Consumers who flirt with such a loan, however, should pay a lot of attention, according to financial experts:
- Pay attention to a low, annual percentage rate
- Check the combined financing from mortgage and building society loans
- Look at the total effective interest rate for combined offers
- Avoid handling fees
- Strive for a long-term interest rate fix if the current level of interest rates is favorable
- Watch for falling trends when interest rates are currently particularly high (short-term or variable loan)
- Take advantage of special repayments
- Avoid prepayment penalties
- Do not forget that the rate can rise after the interest rate has expired
- Save money by using the home loan comparison
- Reputable providers recognize you by means of low processing fees
Our tip: As a borrower, you should also save on interest to be able to partially repay the remaining debt at the end of the fixed interest period.
That’s why debt repayment often makes sense
If you have determined that the current interest rates are lower than those of your own home loan, a debt restructuring may be profitable for you. At the very least, you should do a home loan comparison in the first step.
In this way, you as a borrower are likely to benefit from high interest savings. You should pay attention to these points so that your rescheduling makes sense for you:
- The rescheduling may only be possible after the end of the fixed interest period
- A change before this period is only possible in exceptional cases
- For this, a prepayment penalty is required
Calculate in advance whether the interest savings are so high that the above-mentioned prepayment penalty is worthwhile.
- Use a rescheduling calculator before you switch financing
- Take advantage of the home comparison calculator to see if rescheduling is worth your while
If the rescheduling is guaranteed by the bank, the term can often be shortened, whereby the borrower is debt free much earlier.