A mortgage is a loan secured by a mortgage. With the independent online mortgage calculator complex calculations for mortgage loans and other loans can be carried out taking into account annual special repayments. On the one hand, mortgage loans are the most common form of real estate financing. On the other hand, there are always ambiguities about the mortgage loan – starting with the terminology, choosing the right loan option to the termination of a mortgage loan. Mortgage loans are the most common form of real estate financing.
Real estate loans are earmarked long-term loans for the financing of real estate, which are secured by the land register entry of a first-class mortgage within the credit limit. Liens and mortgage loans are considered as land charges. The lending limit is a percentage of the mortgage lending value, the amount of which depends on the lending of the institution concerned. In the banking sector, a credit limit of 60% is considered a prime loan and thus has the advantage of the best interest rates.
The real estate rights include, for example, the hereditary building right or the condominium ownership, which results from a real division of a residential building completed in the cadastre. Loans or parts of loans to cover financing needs that go beyond the credit limit are only considered to be in kind if they are both earmarked and covered by a public guarantee.
They are referred to as 1b loans or 1b mortgages. Loan components that exceed the credit limit are considered an unsecured part. Some institutions decided not to lend the loan in the sense of real collateral and offered a mixed calculation for the purchase price financing and partly also for the incidental acquisition costs. Of course, home equity financing without own funds is more expensive than financing in the context of lending.
In addition to the collateral provided by mortgages, the institutions also demand individual foreclosure in case of need, next to the property (real estate).
This is the interest that the borrower pays to the lender when concluding a mortgage loan. Other conditions include building land interest or building land interest. The mortgage interest is initially derived from the mortgage, which is a security in the form of a land charge and used in the context of a real estate loan.
But what is a property and what should you pay particular attention to in the construction loan overview? It is also noticeable that interest rates are at a relatively low level in relation to almost all other loans, which of course is very advantageous for the debtor.
For example, if one compares what interest one currently has to pay for a disposition loan “for a part payment loan and for a construction loan, then the construction interest is by far the most advantageous. In principle, the borrower can choose between variable interest rates and fixed interest rates for five to 15 years.