Alternative loans – When you took out your property finance a few years ago, you tied yourself down to a long period of interest rate security. But in recent years, the debit interest rates for construction loans are noticeably healthy, making your construction financing unnecessarily expensive and unattractive. With a real estate loan under 10 years term, you should show patience and wait until the debit interest commitment expires. With longer fixed interest rates, you have the option after 10 years to cancel the debt with your real estate financier and reschedule the construction loan to a cheaper loan.
Loan comparisons save costs
Are you thinking about a debt restructuring and want to get rid of an expensive building loan? Then the comparison of different options is in the foreground. First, check your old contract and check whether the 10-year term has ended and a debt restructuring without prepayment penalty is possible. Otherwise, your desire to save on interest can be expensive, as you will have to pay your previous lender all the interest he has lost.
The selection of the new financing must also be made with the utmost care and consideration. When you make a comparison and examine different variants of debt restructuring, compare not only the construction interest rates but also the contractual terms. It is worthwhile to choose a flexible loan and secure the advantage in the future to repay faster through unscheduled repayments and exclude rigid liabilities. In comparison, you can consider a classic rescheduling of real estate loans, a favorable follow-up financing or even a higher installment loan. You should make the loan form dependent on the remaining amount of your construction financing.
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Advantages of alternative financing solution
Alternative financing solutions are always advantageous if you can lower your interest burden and minimize the overall cost of the construction loan. In order to claim this advantage for yourself, you should consider the new conditions in comparison to the interest rates and total costs of your previous construction financing. In addition to the debit interest, include the effective interest rate and check whether you pay costs to the lender for unscheduled repayments or a change in the repayment rate. Only if you look at these items with a lot of attention and know-how, you will find the best alternative to your current real estate financing without restriction and exclude unnecessary additional costs or an early repayment penalty.
Even more information on financing
Real estate loans – financing options
Would you like to fulfil your dream of owning your own home, a condominium, a building plot or a commercial property? Then the right choice of real estate loan determines how high the interest burden and thus the total cost of your real estate loan will be. Even when selecting a real estate loan, you as a potential buyer are faced with many questions and considerations, such as whether you should choose a classic annuity financing or opt for another form of financing.
Follow-up financing is also possible in various ways. Ultimately, you are faced with the question of whether you are better off with a long and fixed debit interest rate or with a flexible real estate loan. Everything about real estate loans.