Real estate loan: Combined financing options
In a real estate loan, there are generally several ways in which the loan can be repaid. Accordingly, it is advisable to think about this before graduation.
Real estate loan
If a real estate loan is concluded, it is advisable to think here also of the contribution of equity as well as state subsidies.
When you take out a real estate loan, it is not only important to pay attention to a low interest rate. For example, using equity capital also means keeping the loan amount as low as possible. The rule is: The more equity is available, the lower the loan amount. Because of this, it is highly recommended to include here, for example, the savings with. There are also state subsidies, which also provide financial relief. Those who proceed with caution will benefit from a few savings options.
Tip: Nevertheless, it is advisable not to use the entire equity for the desired loan. A certain amount should always be kept ready for emergencies so that there are no financial difficulties.
Equity in a variety of forms, such as life insurance , can be combined with the real estate loan.
For example, a real estate loan is an ideal way to supplement the loan with other existing financing options. For example, it is very popular to include a home savings contract . For this to be possible, however, the home savings contract must already be ready for allocation. If this is not the case, it is usually also possible to bridge the time by using an interim loan. This approach is especially useful if you can not wait to buy your own home until the home savings contract can be allocated. This is the case, for example, if it is now possible to acquire the dream property or if it is necessary to move out of a rented apartment.
Another option is to bring life insurance into real estate insurance: this also helps to increase existing equity capital. Here, however, the regular procedure is a bit more complicated. Thus, it is first necessary to cancel the life insurance in order then to sell the surrender value of the policy in question to the respective insurance. This means that the holder of the insurance again sells the rights agreed in the contract back to the insurance industry. So it is not only possible to increase the existing equity, but it is also feasible by the elimination of the monthly insurance premiums to settle in the real estate loan a higher repayment installment.
If life insurance was taken out even before 2005, it is usually possible for the sum saved there to be paid tax-free after a twelve-year contract period. Alternatively, however, it may also be advisable to provide life assurance as collateral to the bank where the mortgage loan is taken out. In this way, it is often feasible to benefit from a better interest rate.
But even existing savings, such as the amounts on a savings account or from a savings letter or a savings account , for example, can be wonderfully combined with a real estate loan. If it is fixed assets, it is here to pay attention to the payout date.
Further funding opportunities
Municipalities, the Federal Government and the Länder, for their part, offer individual subsidies.
However, KfW Bank loans are not the only funding options that can be claimed when a loan is taken out. For example, there are also special support programs from the municipalities, the federal government and the federal states. However, since these can vary greatly with each other, it is advisable to inform yourself here in advance directly.
Payment protection insurance
Although the residual debt insurance does not finance the real estate loan, it can be of great help in case of unemployment and death of the policyholder.
Although the residual debt insurance is not a financing option, but it is still advisable to think well before the actual loan conclusion, whether such insurance should not be completed. A large number of banks offer this type of insurance to their prospective borrowers.
The residual debt insurance occurs, for example, in the event of unemployment or death of the policyholder for the monthly payments of the real estate loan.
Since such a loan is usually a larger sum, the residual debt insurance can be a good choice depending on your personal situation. For example, it is possible for a family man to “save” the home in case of sudden unemployment; Since in this case the loan installments no longer have to be paid, at least the loan and thus also the own four walls is not in danger. In case of death of the borrower, not only the financial worries and any possible loss of the house will be added to the family mourning. However, it should be remembered that contributions to the insurance also accrue regularly and have to be paid. Because of this, it is definitely advisable to include this in real estate financing.
State subsidies and the use of equity can save a lot on a real estate loan. For protection, a residual debt insurance may be available.
As part of a real estate purchase, it is therefore advisable to pay attention not only to the respective credit conditions of the banks, but also to look for other, combinable financing options.
Thus, equity, in cash as well as home savings or life insurance, is an excellent way to keep the loan amount down. Alternatively, it is often possible to offer the various time deposits as collateral , which in many cases offers the banks a cheaper interest rate.
In addition, state subsidies should not be waived. For example, KfW Bank offers low-interest loans for a variety of measures. But also communities, federal and state governments have their own funding programs.
Anyone who does not “only” rely on a real estate loan, but also benefits from state subsidies and additionally contributes equity capital, can save a lot when financing their own home.
Depending on the personal situation, the conclusion of a residual debt insurance may also be an option here. This pays for example in case of unemployment or death of the borrower, the accruing, monthly installments of the real estate loan.