Loan amount

The loan amount is not a pre-determined amount, as we shall see shortly, and it does not depend solely on the price of the new building or the property acquired. Instead, many different factors play a role.

Financing a property

Financing a property

 

When financing a property, there is no way around determining the possible monthly burden. This could also be called a request rate and is an amount that can be spent easily monthly over a long period. The easiest way is for people who live for rent and now want to build. The rent paid for a long time is firmly anchored in the personal financial plan, and the tenant is used to it. Building a house at the same rate as the rent is a dream, but usually the burden is higher.

In order to determine the portable monthly charge, the serious bank or asset advisor calculates all the factors (all revenue and regular expenditure) against each other and determines the amount that remains monthly and is used to repay a loan can be. This sets the first factor for determining a loan amount.

The second factor is the duration of the loan, which is the duration of the repayment that you are willing to accept.

Get as high a loan as possible

Get as high a loan as possible

 

These two factors are dependent on the borrower, and so he can audition with the bank to get as high a loan as possible, which promises to fulfill all the wishes of the proposed house building. Now, the loan amount is not only dependent on the monthly debit and the term. The other factors (such as interest rates) are contributed by the bank. In order to avoid the highest possible amount of credit, it is advisable to obtain the lowest possible interest rate and to agree on the minimum repayment (1%). With the interest rate also the values ​​behind the comma influence the loan amount. For example, half a percentage point with the same duration and rate can increase or decrease the loan amount by .00025,000.

Conclusion, if an acquisition is pending or even a house construction or purchase is planned, it is advantageous to determine the possible monthly burden, after which the loan amount can be negotiated. This makes it possible for the borrower to enjoy his purchase without ado. In other words: First of all, look at what we can afford and then see what we get for it is better than to order the Ferrari and put it in front of it.

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