An additional loan is a loan that is typically taken out in the form of a mortgage loan. However, it can also be taken in the form of a home loan or a home loan. However, it is in all cases a mortgage for your home value that you have earned over time. Therefore, this is a loan that is made available against a security in your home.
When you pay off a mortgage on your home loan, you actually save up your home as well. This is one of the reasons why it is in many cases more favorable to buy rather than rent. It is this savings that is known as your savings. You can lend your fair value with either a new mortgage or a mortgage in your own bank.
Your fair value can easily increase
Your freehold value can actually increase in two ways. It can do that by paying off your loan. It is a way that gives you the assurance that the free value increases. However, that is not the only way your deductible can end up increasing. It can also increase if the value of your home increases in some way.
The value of your home can increase if only the general house prices are on the rise, but it may also be because you yourself have been making one or more improvements to your home which will make your home more worth. It can for example. be it a new kitchen, a new bathroom or maybe new energy windows throughout your home.
But what does this have to do with an additional loan? In fact, there is a great correlation between the two things, as you take out a loan in your face value with an additional loan. It also means that you can borrow more money if your deductible is greater. Therefore, it is also a clear advantage for you as your freehold value grows when you, for example. improve your accommodation.
How much can I borrow?
How much you can borrow depends on whether you plan to take out an additional loan in the home value of your primary residence or it is in a vacation home. Namely, there is a limit to how much of the total value of the home you can mortgage. However, it is not the same for both your primary residence and for any. holiday residence.
If you would like to include an additional loan in your home value in your primary residence, then you can max. borrow up to 80% of the value of the home. However, this does not mean that you can take out an additional loan of 80% of the value of the home. Both old and new loans must together max. equal to a maximum of 80% of the value of the home if it is a primary residence.
If, instead, you intend to take out a loan in the home value that you have earned in your holiday home, then it is not entirely possible to borrow up to 80% of the value of this property. Here, a maximum of 75% has been set here, which is also the limit on the maximum mortgage value of the home when you buy the respective holiday home.
What this means is that with an additional loan, you get the opportunity to take out a new loan in a condominium that you already have one or more loans in. Of course, this is also why it has been named additional loan. As stated above, it is possible for you to both take out additional loans in your primary residence and your holiday home.
Additional Loans or Restructuring – What is the Best Solution?
If you would like to take out an additional loan, it is not unusual for your property to be reassessed. Depending on your current loans, it may sometimes be best for you to combine your loans into one loan. Of course, you do this by restructuring your loans, which can also be done in several other contexts.
By doing this, you may be able to get a lower overall contribution rate on your loan, whether it be a home loan or a mortgage. Therefore, it is also worth considering if you intend to take out an additional loan. However, it is important that it is something you make sure to consider very carefully first.
In this regard, it should be made clear that it depends a lot on your individual finances and the type of loan you have at this time, whether it can pay off for you to make a change or not. If you have any doubts, you can either choose to get advice from your bank advisor or another advisor.
However, these are not the only options you have. A home loan may also be an option for you. There are several benefits to such a credit, but it is very important that it is linked to another account, where the balance is set off against the balance before interest is calculated.
What the above means is that there may be money to be saved by choosing a home loan. However, it again depends on your own finances, the loans you currently have and the situation you are facing. Before you simply take out an additional loan, however, it is a good idea to consider all the options you can find.
Short mortgages can best pay off
If you need to take out an additional loan, then the maturity of your loan is also something you need to look into. Here it is clearly best to choose a loan with a short term. The price is approx. five times as high for a 30-year supplement loan in your home than it is for a 10-year. Therefore, it is best to pay off the loan quickly.
For example, if want to borrow USD 300,000 over 10 years, it will cost you approx. $ 30,000 If you instead choose to borrow $ 300,000 over 30 years, it will instead end up costing you up to $ 150,000. Therefore, it can be worth a lot of money to get your loan paid off in the short time possible, if you really have financial room for it.
Because there are both fewer and lower expenses associated with paying off your loan in less time. Therefore, it is undoubtedly also something you need to make sure you include in your considerations when choosing the maturity of your additional loan. The shorter the term you choose, the cheaper a loan you get – it’s actually very simple.
Whether you need an additional loan to finance a car, a vacation or something else, don’t hide the fact that it is a good idea to take a look at your options for taking out a short additional loan in your home as it is clearly the cheapest option for you, whether you choose to borrow in your leisure or primary residence.
Is it possible to take out an additional loan?
If you own a permanent home, it is possible for you to borrow money in your home value if you have earned a home value in your home. It is actually something that makes quite good sense as it is a cheaper solution than many of the other loan options. The cost of a mortgage is lower than that of other types of loan.
However, there is nothing that changes that there can be a big difference between individual mortgages. However, it is largely the maturity that helps separate the final price of your loan. As stated above, there is a lot of money to be saved by choosing an additional loan that has a short maturity instead of a long maturity.
If you have a desire to borrow USD 300,000 for 10 years because you would like to buy a new car or renovate your kitchen, then in August 2017 it could be possible to borrow this for USD 31,510 with Gradcredit. If you instead chose to increase the maturity to 20 years, the interest rate increased from 0.5 to 1.5%, and you would have to pay the full USD 82,667.
What this means is that you have to pay 50,000 more if you want to get a term that is 10 years longer. In addition, if you chose to extend the additional 10 years so that the total term of your loan was 30 years, then you would have to repay a total of USD 450,224. This shows that there is a lot of money to save in a short term.
However, the above does not change the fact that it may be better for you to choose an additional loan over many other loans. A mortgage loan is cheaper than, for example, a consumer loan in the bank. If you have the option of borrowing money at an earned value, this is typically the best option.