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Personal loan in Berlin

If you look at the classified ads of various local publications in Berlin, you will regularly find advertisements in which credit is offered by private individuals. Full-fledged loans are promised at low nominal interest rates. If you take a closer look, the interested party quickly realizes that these are overpriced lure offers.

The professional credit brokers from Berlin conceal the high processing fees, the discount and the mandatory residual debt insurance. These cost factors lead to effective annual interest rates that make the loan uninteresting.

Loans through classified ads on the Internet

Loans through classified ads on the Internet

Nevertheless, a personal loan can be the right way if additional financing is required. Because the Internet offers a variety of options for such cases. This is how portals for classified ads have been created on the Internet, where consumers are looking for a loan without Credit Bureau. In times of restrictive interest rate policies on the part of the Capital Lender, there are investors who are looking for a profitable investment. It doesn’t matter whether borrowers or investors come from Berlin.

Self-employed and start-ups with additional capital requirements

Self-employed and start-ups with additional capital requirements

Common interests are much more important. For example, there are young self-employed people and start-ups in Berlin with additional financing requirements. Banks and savings banks do not provide these companies with a loan. Even if there is no negative Credit Bureau entry, the young entrepreneurs usually fall through the credit check because they cannot provide the collateral required by the financial institutions. Private investors from Berlin see it differently. Successful entrepreneurs have an eye for good ideas and are willing to use venture capital when they see market opportunities for a new product.

Offer company participation as security

Offer company participation as security

It goes without saying that the lender wants his investment and interest back. To secure this point, the start-up company can offer a participation. It also binds the lender, which offers further chances of winning. Such an offer must be made sensible from the classified ad. So the borrower plays with open cards right from the start, which gives Berlin’s private credit good chances.

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What is the borrowing rate for a loan?

 

When borrowing, many customers stumble across numerous technical terms, such as the borrowing rate. In this article we explain what is behind it, how you can use it in a loan comparison and what is the difference to the effective interest rate.

What is the borrowing rate?

What is the borrowing rate?

The borrowing rate, formerly known as the nominal interest rate, includes the interest that must be paid by the borrower to provide the loan amount. In addition to the interest on the loan amount, additional costs may arise when taking out a loan. Above all, these include:

  • Processing fees.
  • Final commissions or fees.
  • Administrative fees.

However, these are not included in the borrowing rate. Many also know the borrowing rate from using their own overdraft facility. Here too, a borrowing rate has to be paid for the use of the disposable.

Different variants of the borrowing rate

Different variants of the borrowing rate

There are two different types of borrowing rates that can be offered when borrowing:

  • Bound interest rate.
  • Variable borrowing rate.

What is the fixed borrowing rate?

A fixed debit interest is present when the interest to be paid is fixed from the outset over the entire term of the loan. This gives you planning security because the interest to be paid cannot change during the repayment. However, the disadvantage of the fixed interest rate is that you cannot benefit from falling interest rates on your loan during the entire term.

What is the variable borrowing rate?

With some loans, a floating borrowing rate is offered instead of a fixed borrowing rate. The interest to be paid can be changed by the bank during the term of the loan. If the interest rates on the capital market continue to fall, the interest on your loan can also be reduced. However, they can be raised just as well if market interest rates rise.

The reference rate of the Capital Lender is used to adjust the borrowing rate. Variable debit interest rates are most commonly found in the overdraft facility for a checking account. These are regularly adjusted by the banks if the Capital Lender’s reference interest rate changes.

How can the borrowing rate be influenced?

How can the borrowing rate be influenced?

The borrowing rate offered by the bank to a borrower can vary. In addition to the current key interest rates of the Capital Lender, other factors also have an impact on the amount of the borrowing rate. The following applies:

The higher the risk for the bank when the loan is taken out, the higher interest will be charged.

For this reason, the following factors in particular influence the amount of the borrowing rate offered:

  • The borrower’s credit rating
    With the creditworthiness check, your creditworthiness is checked in advance of the loan. Customers with better credit ratings receive cheaper debit interest than those who can demonstrate a lower credit rating. The correspondingly greater risk of default is therefore more expensive for the bank to pay.
  • The amount of the loan
    The higher the total amount of the loan, the higher the debit interest is generally. The relationship between the borrower’s monthly income and the amount of the monthly repayment rate can also play a role in the amount of the borrowing rate.

What is the difference between borrowing rate and effective rate?

What is the difference between borrowing rate and effective rate?

The borrowing rate only indicates the costs that the bank charges for the provision of the loan amount. No other costs are included here. The effective interest rate, on the other hand, combines not only the interest on the loan, but also all other costs that arise in connection with borrowing. Possible residual debt insurance is also included here.

In order to be able to carry out a credit comparison objectively, the effective interest rate is therefore more meaningful, since all costs are included.

Conclusion on the borrowing rate on a loan

Conclusion on the borrowing rate on a loan

The borrowing rate describes the costs due for the provision of the loan amount. However, it does not include any additional costs associated with the loan. In order to be able to compare loans from different providers, the effective interest rate is therefore appropriate. This includes all costs that arise from borrowing. With the help of our loan comparison, you can see at a glance which provider has the offer with the best borrowing rate and the cheapest effective interest rate. This way, you can easily choose the loan that is most suitable for you.

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Which loan is suitable for whom?

Credit equals credit, doesn’t it? Not even close! For this reason, you should think about the right loan for you. In our loan comparison, you specify the loan amount, the provider gives you an interest rate and a repayment rate. Then you take out the loan – or not. However, lending is not that easy. This is only the first step towards your new loan. It takes a bit more until the loan is approved and finally credited to your account.

There is one type of credit with which you can fundamentally hire or pay whatever you have in mind. These are loans without a specified purpose and can therefore be used freely. You can use these pure consumer loans, for example, to settle your overdraft facility, buy a new television from it, or finance your next vacation. The use of real estate financing is usually prohibited. However, there is a simple reason for this: consumer loans are usually up to $ 50,000 (we have banks with higher sums in the loan calculator) and are granted without a mortgage. Since real estate loans are usually significantly higher in the loan amount, most banks also require appropriate land charge protection.

There are also loans that have a specific purpose and are also linked to it. These are, for example

  • Car Loans / Motorcycle Loans
  • rescheduling loans
  • modernization loans

A distinction is also made between loans with interest dependent on creditworthiness and loans with interest independent of creditworthiness (so-called fixed-interest loans). Here it is important to consider which loan is really suitable for you in the end.

Capital Lender Tip : Take a look at our loan comparison – here you will always find the very cheap loan offers for the credit types mentioned. You can use the loan calculator as often as you wish. It remains free of charge for you and 100% non-binding. However, please note that you will only receive your individual interest rate after applying for a loan. This loan application is also 100% free and non-binding for you!

Four types of credit and what makes the difference

Four types of credit and what makes the difference

As already mentioned, the cheapest loans can be filtered out for four loan types. Each of these types of credit has its own advantages and disadvantages and certain idiosyncrasies in the regulations. Below we present some of the types of credit to you in more detail.

  1. Car loan and motorcycle loan
  2. Consumer or online credit
  3. Debt rescheduling loan
  4. Modernization or renovation loan

1) Car loan

A new car is often an expensive pleasure. Depending on which vehicle you choose, the costs can quickly go into the middle five-digit range. If it is a large family car, a chic sports car or a modern electric car, it can quickly become expensive.

Only a few people can raise such a sum at once and pay the vehicle in cash. But that would actually be the most sensible option when buying a car. If you act as a cash payer, you will usually receive additional discounts and discounts. However, since many consumers finance their car, numerous car dealers now work with a contract bank that enables car financing directly on site. But does it really make sense to use the financing directly from the dealer? Wouldn’t a car loan comparison be necessary to find the best deal?

With a car loan through Capital Lender this is possible. You take out your car loan, receive the full purchase amount of the vehicle and pay your vehicle in one amount. As cash numbers, it only depends on your negotiation skills how much discount you can negotiate. In any case, you saved on the car loan interest with our comparison. However, before you get the loan paid out, the payment is subject to different conditions.

On the one hand, the granting of a car loan is earmarked. This means that you can only use the money from this loan to buy the vehicle. The purchase must subsequently be proven by a purchase contract.

In most cases, the lending bank also requests the vehicle letter of the financed vehicle as security. In the meantime, you can also find numerous banks in our loan comparison that do without this additional security.

Advantages and disadvantages of a car loan

Car loan benefits:

  • since there is additional security, the interest rates are often cheaper than with a pure consumer loan
  • the credit gives you the opportunity to act as a cash payer when buying and to negotiate more favorable purchase conditions

Car loan disadvantages:

  • the loan is earmarked and cannot be used freely
  • Many banks require the vehicle registration document as additional security until the loan has been paid off in full
  • in the case of used vehicles, the lender may impose certain conditions on the award (e.g. maximum vehicle age)

By the way: The same advantages and disadvantages apply to a motorcycle loan as to a car loan. Ultimately, the only difference is the fact that a motorcycle is financed by a two-wheeler and the purchase price is usually lower.

When choosing a loan, a distinction can also be made between full repayment (classic annuity loan) and a balloon rate (more on balloon financing). A full repayment loan is paid off in full monthly installments until repayment is complete. The variant with a balloon rate comes with significantly lower monthly rates. In the end, however, there is a large final rate. This is usually chosen so that the balloon rate corresponds to the expected value of the vehicle at this time. This gives you the opportunity to trade in the vehicle at the dealer without major losses in order to purchase a new vehicle from the dealer.

2) Consumer or online credit

Classic consumer credit (also known as online credit only) is not tied to a specific use. In the end, with the money from an online loan, you can do what you want. Classic reasons to take out consumer credit include:

  • a wedding (with a wedding credit) or other large family celebration that needs to be paid
  • the purchase of a vehicle if no car loan is an option
  • funding training
  • the purchase of technical equipment
  • the purchase of furniture (e.g. with a furniture loan)
  • buying a new kitchen (e.g. with a kitchen loan)
  • the settlement of an open overdraft facility
  • the payment of a trip (e.g. with a holiday loan)

With classic consumer credit in particular, it is important to think about it beforehand. Do you need the loan at all? If yes, in what amount? What can you actually afford? The disadvantage of consumer credit is occasionally lower interest rates. With a second borrower or with additional collateral, you have the option to reduce the interest rate a little. Please also read our 9 tips on how you can reduce your loan costs.

The pros and cons of consumer credit

Online credit benefits:

  • there is no specified purpose
  • You can use the money immediately or use it as a reserve
  • in most cases, a credit decision is made very quickly
  • the interest is significantly lower than that for a credit facility
  • can serve as a “fall-back option” if, for example, a car or motorcycle loan is not granted

Online credit disadvantages:

3) Loan for debt restructuring

Another option is to take out a loan for a debt rescheduling. Such debt rescheduling only makes sense, of course, if the terms of the new loan are better than those of the old loan. Even with a good credit rate, debt restructuring can make sense. For example, if you have a shorter loan term on a new loan, you will save a lot of costs in the end and have also repaid your loan faster.

It is important that the new debt rescheduling loan has a lower effective interest rate. In addition, you should consider possible additional costs of the loan repayment. If there is no possibility of a special payment or free transfer with the original loan agreement, it can quickly become expensive through prepayment fees, which would make the rescheduling no longer worthwhile.

4) Modernization loan / renovation loan

A modernization loan falls into the area of ​​construction loans, but is not a classic construction loan. A complete house or the purchase of an apartment is financed within the framework of construction financing. With a modernization loan, you only finance a planned modernization or renovation.

For this reason, no entry is made in the land register with this type of loan. However, a modernization loan is very well earmarked, so you have to prove the use of the borrowed money accordingly. The classic modernization loan usually comes with a significantly lower interest rate than the consumer loan is freely available. However, it is only aimed at property owners. This means that you have to prove that you own an apartment or house in order to receive such a modernization or renovation loan.

The advantages and disadvantages of modernization or renovation loans

Advantages of modernization:

  • no entry in the land register is necessary
  • lower interest rates than a consumer loan
  • sometimes significantly longer loan terms possible
  • This means that modernizations are possible that significantly reduce running costs (e.g. electricity and heating)
  • Parts of the credit rate can already be financed through the corresponding savings

Modernization loan disadvantages:

  • clear earmarking of the loan
  • Credit is only granted to property owners

Loan with or without interest based on creditworthiness

Loan with or without interest based on creditworthiness

In our credit comparison on Capital Lender there are numerous offers with interest rates that have “ from-to-information ”. These are so-called interest rates dependent on creditworthiness. This means that the lender checks your credit rating and determines the interest rate based on the respective result. The better your credit rating, the lower the interest rate.

The higher your income and the lower your monthly costs, the greater the security for the lender. The customer must weigh up in advance how safe it is that the loaned money will be paid back. Therefore, in the case of interest rates dependent on creditworthiness, the interest rates sometimes go very far below the interest rates of fixed-rate loans. However, this only applies to top ratings in terms of creditworthiness and account rating.

Credit-independent interest never reaches the lowest offers of credit-related interest. Instead, they tend to be in the lower middle of the interest margin. But they are completely independent of your credit rating. This means that the top earner pays the same high interest rate as the low earner.

Of course, this means a higher risk for the lender. The risk is somewhat offset by an average higher interest rate. As such, the credit check as such is generally carried out much more intensively and strictly in the case of interest independent of creditworthiness. This is to further minimize the risk for the lender.

You will not find blatant interest rate differences in our loan calculator. Of course, the “ advertising interest ” looks very tempting; if only everyone would get it. Banks are therefore required to provide a representative example of their loans. These are the loan terms at which 2/3 of the customers received the loan from the respective bank. If you compare this interest rate with a credit-dependent loan and a fixed-interest loan, you will find that the interest rates are very close to each other!

Type of loan benefits disadvantage
credit ratings – lower interest rates with a good credit rating
– Even with poor creditworthiness, there is more of a chance to get a loan
– Even with mediocre creditworthiness, the interest is comparatively high
creditworthiness independently – basically constant creditworthiness
– clearly predictable costs already in the offer phase
– here there is more of a risk that the loan application will be rejected because of poor creditworthiness

Borrowers should choose a credit-dependent loan if they have a very good or borderline bad credit rating. Loans that are independent of creditworthiness are best suited for all persons with a medium income. Here, the interest rates are generally lower than for most credit-dependent rates for ordinary earners.

Conclusion: high savings potential with many loans

Conclusion: high savings potential with many loans

Even small details can make a big difference in credit costs. When buying a car, for example, it is very important whether the vehicle is financed with a consumer loan or a car loan. The same applies to a modernization or renovation loan. However, there are also situations in which you are blocked from accessing the respective loan types. This applies, for example, if you want to buy a used car, but its age and condition do not meet the criteria of the potential lender. Then consumer credit is the perfect way to get hold of it.

In any case, you should make comparisons before entering into a loan agreement. This is definitely recommended between the individual loan types. This is the only way to ensure that you end up with exactly the loan that is most suitable for you over the entire term.

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How quickly are loans approved or paid out?

 

If you apply for a loan, you usually want to have the money in your own account as soon as possible. However, it can take some time from the application to the approval and payment. In this article you can read about how quickly loans are approved, what differences there can be and how you can help to speed up the approval process.

What factors play a role in the approval of a loan?

What factors play a role in the approval of a loan?

The approval and thus the speed at which a loan is paid out depends on several factors. The main ones are:

  • The amount of the loan
  • Required documents for approval
  • The processes for credit approval at the respective bank.

The loan amount

Before a loan is paid out, the bank must check whether the customer is able to repay it. After all, there is a certain risk of default on the part of the bank. Logically, the higher the loan amount, the higher the risk. For this reason, the amount of the loan plays a decisive role when it comes to the speed of approval. Small loans – usually up to a limit of 1,000 USD – 10,000 USD – are subject to a fully automated check at most providers. A computer queries the applicant’s current credit score in order to assess its creditworthiness. In addition, an electronic view of your own account often has to be approved. Based on the information obtained, the software calculates how high the risk of a loan default is. This process usually takes place within a few minutes. The approval of such small loans is usually very quick.

When it comes to a larger loan, the risk to the bank is also greater. At many banks, such loans are usually not granted automatically, but are carefully checked by employees. Depending on the amount of the loan, the clerk must first obtain approval for payment by the manager.

Required documents for approval

While in the case of small loans it is often sufficient to have an electronic view of the account and to query the applicant’s credit score, the banks are requesting more documents for checking larger amounts (a detailed article on this). These usually include:

  • The last three payslips.
  • Confirmation of permanent employment.
  • Account statements from the last 6-8 weeks.
  • Budget bill with all regular income and expenses.

These documents usually have to be sent to the bank by post or email and checked there by an employee. Since this manual check takes time and delays can also occur by post, it takes longer to approve.

The bank’s approval process

There are different providers on the credit market. Basically one can differentiate between:

  • branch banks
  • direct Banking
  • credit intermediaries

All of these companies sometimes have different credit approval processes. In times of digitalization, some branch banks have already expanded their online offer to apply for credit, but often a personal audition in the bank is still required. This is especially true when it comes to larger sums. This process is correspondingly time-consuming. In any case, you should take all the necessary documents with you to an appointment to apply for a loan in a branch bank in order to avoid further delays. In most cases, applying for a loan from your own bank can be quicker, since it already has an insight into your previous financial history.

Direct banks do not have their own branches and only offer their business online. Accordingly, the application process for a loan can be completed quickly on the Internet. When applying for an online loan, it is always necessary to identify the applicant in order to prevent money laundering. With modern providers, this can now also be done online using the video identification process. Small loans that are subject to an automatic approval process can therefore be paid out within a few hours. If the application is checked manually, it usually takes 1-2 bank working days for approval. If the video identification process is not offered, the post identification process must be used, which means that an additional few days can pass.

Credit intermediaries do not themselves decide on the approval of loans. As the name suggests, they only provide bank loans to customers. The fact that another party is involved in the process can also extend the time until the bank actually approves the loan. But not with the credit comparison from Capital Lender! With the free loan application, you only have to enter your details once and you can request your individual conditions directly from several banks. By entering your data online, this can also be immediately transmitted to the respective bank. The application route is so user-friendly that you can enter all important information. If you have forgotten something, you will be informed of this when you apply and you can correct it immediately. So there is nothing standing in the way of a quick, sometimes even immediate (keyword digital loan) loan payment.

How does a loan application work in general?

How does a loan application work in general?

Although the individual banks have different processes for approving installment loans, the process is roughly similar. For the bank, the top priority is to avoid default. Therefore, the details of the borrower are checked more closely, the higher the loan amount. Basically, this is done according to the following steps:

  1. Assessment of creditworthiness
    A person’s credit rating indicates how creditworthy someone is. In most cases, the banks conduct a Credit Bureau query. However, there are also other credit bureaus that can be used for the credit check. If the credit score is too bad, the application for a loan is immediately rejected.
  2. Audit of the budget bill
    Especially with large loan amounts, information about the regular income and expenses must be provided. This helps the bank to assess whether the applicant can really afford the loan installment. In order to substantiate the information provided, the bank statements of the last 6-8 weeks are usually requested. Thanks to modern technology, some banks do without it, provided that the applicant allows the bank an electronic view of their own checking account in online banking.
  3. Legitimation of the applicant
    In order to prevent money laundering and fraud, every applicant must identify himself for a personal loan. During a branch appointment, the identification is carried out by the bank employee. If the application is made online, the post or video identification process can be used, depending on the provider.
  4. Approval and payment
    If all checks have been successfully completed, the loan application can be approved and forwarded to the appropriate payment agent within the bank. As a rule, it takes 4-5 days before the money applied for ends up in your own account.

Tips on how to speed up the approval process

Tips on how to speed up the approval process

As a loan applicant, you are in principle “at the mercy” of the processes within the bank and can therefore have little influence on the processing time. However, you can make sure that there are no further unnecessary delays. The following tips will help:

  • Provide correct information
    In the case of online loan applications in particular, the data is entered by the applicant himself. It is important that they are all correct. If it is determined during the later check that incorrect information has been provided here, the bank may ask unnecessarily or the request may be rejected. Also read our tips on “what can you do if the loan is declined”
  • The right time to apply
    Only bank working days are counted for the duration of credit approvals. These are from Monday to Friday. Anyone who submits a loan application on Friday evening must expect that it can be processed on Monday morning at the earliest. The same applies to bank holidays or bank strikes.
  • Submit full documents
    If you submit a loan application and have to submit documents for it, these should be correct and complete from the start. The following also applies here: if documents are missing or incomplete, the bank will ask questions. This leads to unnecessary delays. If you make the application directly in a branch, the necessary documents should already be taken with you.

Conclusion

How quickly a loan is approved depends on several factors. Small loans or instant loans are usually approved very quickly; in the case of larger loan amounts (e.g. for a debt rescheduling loan), a more time-consuming check is logically required. If you already have a long-standing business relationship with your own house bank, a loan approval can also be granted very quickly here. Thanks to digitization, online and direct banks are also offering accelerated application procedures for loans.

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Why a loan change can also make sense

Every year towards the end of the year thousands of car owners change their car insurance because other providers are cheaper. However, only a few borrowers change their loan provider during the term of the loan. You can read why a loan change can make sense in the following article.

Who can change their loan provider?

Who can change their loan provider?

In principle, every borrower can change providers during the term of a loan. For this purpose, a new loan is taken out from another loan provider, with which the existing loan from the old loan provider is replaced. This is known as debt restructuring. In the following sections we clarify when this is worthwhile and what you should consider.

When can a loan change make sense?

When can a loan change make sense?

There are several reasons to consider a loan change. This includes the following situations in particular:

  1. The repayment of an expensive loan

    In particular, loans that have been running for some time often contain a high interest rate. These were completed when interest rates on loans in the market were still at a higher level than is the case today. However, interest rates on loans have been significantly reduced in recent years. For this reason, it can make sense to replace an old and expensive loan with a new, much cheaper one.

  2. Settlement of overdrafts

    The overdraft facility of your own checking account is a convenient way to expand your financial scope, for example if urgent purchases have to be made. However, this should only be used for a short time, since high interest rates accrue for overdrafts. With an installment loan, you can balance your overdraft facility and switch the outstanding amount to another loan provider. This means that you pay significantly less interest on the loan amount.

  3. Additional financial leeway

    Do you urgently need new furniture or maybe want to treat yourself to a vacation? With a new loan this is not a problem! The amount of the loan can be selected so that an existing loan is replaced in the same step and you switch to the new provider with the entire loan amount.

  4. Summary of several loans

    Installment financing here, a loan here and there and a small loan – the financial obligations of consumers are often spread across a wide range of providers. The overview can quickly be lost. By switching all the loans to one provider, you can escape this provider and regain an overview of your own finances.

The advantages of a loan change

The advantages of a loan change

Switching the loan provider can not only make sense, it also has several advantages:

  • The overview of your own financial situation is improved

    By merging several loans and / or goods financing in the course of a loan change, you will ultimately receive a uniform repayment rate for all outstanding obligations. In this way you gain a better overview of monthly expenses and have a better grip on your financial situation.

  • Creditworthiness improvement

    Your creditworthiness, i.e. your own creditworthiness, is decisive for whether the banks grant you a loan and on what terms. Having only one loan instead of several different loans from different providers can help you improve your credit score.

  • money saving

    Especially if you have one or more loans with a high annual percentage rate, a loan change can be worthwhile. This allows you to save money with the new loan provider by paying less interest. You can either use this money to pay off the loan faster or for other financial wishes.

  • Loan repayment faster

    If you switch to a different provider with your loan, you will receive a new loan agreement there. In this you can, for example, also set higher monthly installments than with the previous loan in order to get out of debt faster. Of course, this also applies the other way round. By agreeing lower monthly installments with your new loan provider, you can expand your own financial scope each month.

Switching a loan can have a number of advantages. To take advantage of this, you can easily find a suitable new loan at Capital Lender and apply directly online.

What should be considered when changing loans

What should be considered when changing loans

According to an EU directive, loan contracts concluded since June 11, 2010 can be terminated without notice to make a loan change. For contracts concluded before this date, a notice period of three months applies. However, you should read your loan agreement carefully when considering a loan change. Banks have the right to demand prepayment penalties if the loan is terminated before the actual term of the loan. This is intended to compensate for the loss of interest income for the bank. The following applies:

  • If the remaining term of the loan is longer than 12 months, the prepayment penalty may not exceed 1.0 percent.
  • For residual terms of less than 12 months, the bank may demand a maximum prepayment penalty of 0.5%.

However, finding a new loan provider for less than twelve months can be difficult, as the remaining debt is low in most cases. Many banks require a minimum loan amount or a minimum term.

How to proceed for a loan change

How to proceed for a loan change

In any case, you should carry out a credit comparison in advance of the loan change and compare the conditions of the old loan with the new one. To do this, take the remaining term, the remaining debt, the estimated interest and the monthly installment and calculate the total cost of the two loans:

Old credit New loan
48 months remaining 48 months term
$ 10,000 residual debt $ 10,000 added
6.00% APR 3.50% APR
$ 234.12 monthly rate $ 223.32 monthly rate
$ 11,237.76 total repayment $ 10,719.36 total repayment
$ 1,237.87 total interest payments $ 719.16 total interest payments

Savings through loan changes:
$ 1,237.87 – $ 719.16 = $ 518.71

Less 1% prepayment penalty: $ 418.71

In this example, you can save a total of $ 418.71 by changing your loan.

Conclusion on the loan change

Especially in the current low interest rate phase, a loan change can make sense in order to save a few hundred USD. If interest rates in the market should rise again, it could be different again. A loan change is particularly worthwhile if the current loan provider enables a total repayment free of charge, meaning that you do not have to pay any additional prepayment penalty. If this was agreed in the old loan contract, it must be included in the consideration of the loan change.

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25,000 USD loan – Borrow money now!

 

Do you need a 25,000 USD loan for the follow-up financing of your property? Then you should be very careful. There are many ways you can finally get your four walls.

What is follow-up financing anyway?

What is follow-up financing anyway?

If you have a real estate loan, in most cases you will need follow-up financing. The real estate loan was concluded with a fixed interest period.

It means that the interest is valid as long as. But the term of the loan also ends when the commitment period ends.

It is actually always the case that a residual sum will remain for the property.

Hardly any owner can pay the entire purchase price with a single loan. As a rule, after 10 to 15 years it will hit every owner to seek follow-up financing. It gives you a way to pay low loan interest from now on. You should therefore look very closely.

Opportunities for follow-up financing

Opportunities for follow-up financing

Follow-up financing in the amount of 25,000 USD is not uncommon. Depending on the purchase price and the duration of the first financing, the sum can be even higher. You have several options for the further financing of your property and should take a close look at them all.

First of all, you should know that you do not have to take out the additional 25,000 USD from the bank where you now have your real estate financing. You should therefore also look for other banks on the Internet to find out what interest rates you get here. A credit comparison can show you what costs you will face so you can then decide.

The follow-up financing is also not tied to the fact that you now have to repay the entire remaining loan amount during the term. No, you can also start another one after a follow-up financing. However, you should make sure that you eventually become the owner of your property.

When you finish follow-up financing is an important point to keep in mind. It can cost you a lot of money if you decide to do it too late, or too early. You should keep a little eye on building rates if you own a property. Then, when interest rates are low, you should choose to close. Many banks reserve follow-up financing for a period, so that you can request the loan even if you are still in the first financing period. You should find out directly from the banks how long it is possible to do so free of charge. Differences can often be found here. If you want to let the 25,000 USD rest in the long term, the forward loan is specially designed for this. It is a special form of follow-up financing that you can use to secure good loan interest even years in advance.

Conclusion on 25,000 USD loan

Conclusion on 25,000 USD loan

As you can see, you can get a 25,000 USD loan for follow-up financing in many ways. You should therefore not take out a loan without knowledge of interest and further information. It can cost you a lot of money.