Mortgage and loans news

Most borrowers and loan seekers in Germany naturally assume that they will properly repay the loan they have taken out. Only a small percentage of those who borrow money do so on the assumption that they are unlikely to be able to repay the loan amount anyway.

Even though most borrowers act with good will to pay the loan installments as agreed, problems can still arise due to a variety of reasons. In the following guide we would like to inform you which causes are often found in practice and what you can do or. what happens if you can no longer pay your credit.

Builders in particular often take little time to search for construction financing. Usually they have a lot to do, which is why the loan search often falls short. But it's not just time constraints that play an important role. It is often assumed that a good real estate loan is found quickly anyway.

But things are not quite so simple after all. Although it is now possible to search for real estate loans online and compare the interest rates of numerous banks, for example, the search for a loan should not be taken lightly. That's because a whole host of factors come into play when it comes to construction financing.

We currently have an absolutely low interest rate phase in construction financing and everyone assumes that there can only be one direction in the future: upwards. Whether it will actually happen (and especially when), no one knows to predict. In the same way, it is impossible to predict whether we will end up in a high-interest phase again in the foreseeable future.

Anyone who is now taking out a new construction loan for the first time in order to buy or build a property should, however, remember that there were periods when interest rates were above 5 or 6 percent (in the early nineties even above ca. 9 percent). Who builds up its financing now in the belief that the low-interest phase lasts forever, takes a high risk.

Nowadays a construction financing can be obtained from different places. Not only savings banks and branch banks offer a real estate loan for construction financing.

Around 300 families currently lose their homes every day because they could no longer pay their mortgage. Often, the debt exceeds the purchase price of the home because interest on late payments and legal costs are piling up on top of the principal debt itself.

Because property values have crashed as a result of the housing crisis, buyers usually can't be found during the foreclosure process. In this case, the bank takes over the property at a value that is sometimes only 50% of the original purchase price. The debt mountain that goes beyond this "surcharge value" is something the debtor may drag with him for the rest of his life, even after losing his home. Consumer insolvency proceedings such as z.B. in Germany, with which the debtors could at some point achieve a discharge of residual debt, does not exist in Spain.

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For the establishment of a business about 80 percent within Germany need financing and this often includes the doctors. Partly this has private reasons and partly also professional reasons, for example when a practice is opened. Although the fees in this professional group are sometimes very high, financing is also required here for high-quality goods or a real estate purchase. The credit approval depends on the employment relationship for the credit for physicians.

A practice is never cheap and therefore some doctors face a financial problem. There is a special credit for physicians and also thereby still different possibilities. A doctor can get a doctor's loan with a fixed interest rate or a civil servant loan in the form for doctors. There are already some banks that offer a loan for doctors with good conditions and favorable interest rates. After the costs and conditions are partly very different, however, a comparison can not hurt. If a loan is then obtained, it can be used for a practice or also for private purposes.

Making the dream of owning your own home come true: The interest rates for the loan are low – that makes more and more people play with the idea to build or buy themselves. But beware: even in times of favorable loans, there are some pitfalls that you should avoid when financing your own property. Here's how to find out which ones.

Is the loan with the lowest interest rates always the best?

Currently, interest rates for construction financing are still at a historically low level. This is of course good news for all potential real estate buyers. However, financing a property is also very complex. We therefore show you here how you can make your own building project come true and save money on mortgage rates. In addition, we enlighten you about the most important factors of the right construction financing. From the effective interest rate to the annual percentage rate to the commitment interest rate. By the way, you can find a very good initial overview of these most important building blocks of financing on Baufi24.de

While many people make financial mistakes throughout their lives, the impact of those mistakes increases with age. Millennials and people in Generation Z have much more time to learn from their mistakes and correct them. On the other hand, people who are retired or close to retirement don't have much room for course correction. Financial mistakes at this stage of life can have a negative impact on how they spend the rest of their days.

Many people know the phenomenon all too well: at the end of the month, money gets tight and at some point, the only way to cover current expenses is to use the overdraft facility. Even if one denies oneself all not absolutely necessary expenditures, one can only watch the increase of the credit and its costs idly for days, until finally the long-awaited salary arrives.