When can you restructure mortgage lending?

When can you restructure mortgage lending? at the banks – and you have more money in your pocket every month. What does a fixed interest rate or a fixed interest rate bond look like? How can a new loan be taken for debt? Loan, the remaining time, the interest and the terms of the new loan. This can easily reduce the risk of rising interest rates.

Building financing The rescheduling is legally enforced

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Anyone who has taken out a construction loan ten years ago will doubtless face the question of how to benefit from the currently advantageous interest rate, in economically difficult times. Good news: A restructuring of mortgage lending is conceivable in many. However, it is not enough just to repatriate the debt with a construction loan.

On the question of possibilities, a few further aspects should be examined to optimize future follow-up financing. A partial termination makes sense if you can make a higher unscheduled repayment in the form of a one-off payment and the old contract was also concluded at an interest rate that corresponds to the current low-interest rate.

In addition, the repayment is already set at least 3 percentage points (if your repurchase agreement is only 1 or 2 percentage points, it is advisable to make a full termination to set the repayment at 3, 4 or 5 percentage points). The contract continues to run at the once closed core points (interest, repayment, maturity) but reduces the remaining liability by a one-time payment.

The goal is to fully terminate the contract

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In order to settle the remaining liability with another house bank at a more favorable interest rate. Due to the significantly higher interest rates 10 years ago, it is almost always sensible for the then closed mortgages with a duration of 15 or 20 years to seek such a termination.

However, it should be noted that the termination date depends on the “Full Receive”, the distribution of the final amount of the loan (often in several installments). This date is binding, as a cancellation must be made 10 years later with a delivery time of 6 months. The complete termination of the old contract is the most common form of rescheduling.

Because it is usually not in the interest of the financing banks to finish mortgage lending with 10 years or even longer maturities, you should definitely turn to another financial partner, such as non-bank lenders and / or direct financers, and it can a non-binding and free offer will be made for follow-up financing.

It is also an opportunity to develop an individual, novel follow-up financing concept adapted to the current and future funding opportunities that might have changed during the ten years of the first contract.

Because it often makes sense to repay part of the remaining debt immediately with existing capital and refinance only the remaining contract, we recommend that you seek comprehensive advice from our specialists.

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