You should always reschedule a house loan if the interest rate at the lending bank is too high and a house loan rescheduling allows you to achieve a lower interest rate and therefore less repayment.
Financing real estate construction usually concludes a loan agreement that runs for 20 or more years. The borrowing rate on house loans is usually set shorter. After the fixed interest period has expired, the borrower must take care of follow-up financing. In order to obtain good conditions, he can reschedule the house loan .
Debt home loan debt calculator
Monthly debit before debt restructuring Monthly debit after debt rescheduling Prepayment penalty amount Borrowing costs after one year without debt restructuring Borrowing costs after one year with debt restructuring Borrowing costs after 10 years without debt restructuring Borrowing costs after 10 years with debt restructuring Profit after 10 years of debt restructuring minus prepayment penalty
A comparison of different offers always makes sense, because the interest rates can differ very significantly from bank to bank. Even a few decimal places lead to significantly lower or higher costs.
Home loan quick comparison
Construction finance is entrusted to the borrower the possibility of prolongation. In this case, it is not actually a debt rescheduling, but an extension of the loan agreement based on the current market interest rate. However, this variant is often less favorable from a financial point of view.
- Debt through another bank
The cheaper option is often follow-up financing from another bank. A new loan agreement is concluded here with the current interest rate and corresponding conditions.
The loan amount is then paid into the house bank to replace the building loan. The borrower now owes the corresponding amount to the other bank.