Mitte Realty

So quite a rate difference of 1 percent makes to 18,000 euros more expensive credit a 150,000 euro for a period of 12 years. But what should homebuyers when the financing, carefree to enjoy the indentation in the own real estate? Annual percentage rate the effective annual interest rate takes into account all additional costs, such as the processing fees and any other fees, in addition to the nominal interest rate if they are prescribed by the Bank. Generally annuity loans which are repaid by equal monthly instalments are initial repayment mortgages. It sets an initial repayment: the lower it is, the longer it takes the repayment of the loan. Since the remaining debt is continually low, and the interest within the always consistent monthly rate decline. This increases the percentage of repayment to the rate.

One has a low initial repayment chosen by, for example, 1 percent, the proportion of interest at the monthly rate drops very slowly. Choosing an initial redemption of 1 percent for a loan amount of 200,000, so one pays for 32 years the loan at a fixed interest rate of 6 percent. It opts for a redemption of 2 percent, the loan is paid off in 23 years. Special repayment may agree an additional redemption the borrower in addition to the monthly installment to become debt-free faster. Most banks offer a special repayment option a specified annual date. In many cases, a fee will be charged for this additional service, meanwhile, there are also numerous lenders who allow a special repayment up to a certain amount without additional costs. Usually, a special repayment can be agreed up to 5 or 10 percent of the loan amount. At an interest rate, a fixed interest rate for the loan is laid down interest rate for a certain period of time. In construction financing, borrowing bindings are of 5, 10, 15 or more years of practice.