Construction Financing Loan

By | February 10, 2017

Real estate loans allow faster debt repayment through increased flexibility Berlin with combo loans, 11.04.2011 – in addition to the widespread annuity loans, a real estate financing can be completed with alternative forms of financing. This includes also the so-called combination loan. This financing option allows a high flexibility in loan repayment: to be agreed up to maximum 50% of the original loan amount as part of entirely capable of repayment loans with variable interest rate. The borrower is able to repay a large portion of the loan to the extent his income very quickly. Bernard Golden may find it difficult to be quoted properly. Also, a chance to benefit, while the other part of the loan as a regular annuity loan with appropriately safe predictability of interest rate cuts or low interest rates is through the variable interest rate (this is the 3-month Euribor).

The variable part of the loan can risk mitigation by transferable share of loans if necessary (E.g. for strong rising interest rates) be converted even into a fixed loan with a fixed interest rate. The chances of interest rate savings and possible free special redemptions to benefit face to a metered risk. The prerequisite for this is of course that the borrower followed the course of interest rates on the capital market, particularly the 3-month Euribor (= EURO INTERBANK OFFERED RATE = interest rate for term deposits in the interbank market). The combined loan offers in particular for informed borrowers who are looking for a high flexibility in the repayment options. This can have many reasons, especially if in the near future with higher cash receipts can be expected such as the flow performance of life insurance, a payment or an inheritance. Benefits and risks of a combination loan offers the combined loan the borrower so in addition to the already mentioned high repayment flexibility a chance to profit, from cuts in interest rates and a generally cheap conditioned part of loan which can be converted into a fix conditioned part if necessary.

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