Monthly Archives: September 2019

How high can you get a home loan? | Payday Loans

Before you take out a mortgage, it is important that you already get what loan ratio you can get. This figure can be something that affects which lender it is cheapest to borrow from. The loan-to-value ratio is the part of the house purchase that you can have as the mortgage loan and where the home itself becomes collateral for the loan.

Currently, this sum is a maximum of 85% of the value. The other 15% must therefore be financed in other ways such as cash contributions and top loans. Also, it is not certain that all banks and lenders offer you as much as 85% loan-to-value ratio, but it may well be 70 – 85% depending on who you turn to.

Cheaper to borrow from someone

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If a lender only offers you 75% as a loan-to-value ratio, then it may be cheaper to borrow from someone who offers you 85% but who has a slightly higher interest rate on the mortgage. The reason for this is that the mortgage loan is still so much cheaper than borrowing money in the form of a top loan, where you have no collateral for the loan and thus also clearly higher interest rates.

How high can the loan ratio be?

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As we said, the maximum loan-to-value ratio is currently 85%, which is by far the largest part of the cost. However, there are a number of different factors that can affect your potential loan-to-value ratio. This is because you can borrow 85% of either the price of the home or the valuation, whichever is the lower.

If the valuation of the property falls below the price, you can only borrow against the valuation. This means that you who have bought a house that is more expensive than it is valued unfortunately can not borrow as much as you might need and then you are forced to find more money elsewhere.

If you buy a house that is worth a lot of money but for some reason you can buy cheaply, the high loan-to-value ratio will allow you to cover most of the cost. On the contrary, if you buy a house that is not worth much but for which you have to pay an expensive price. For example, if you buy a house for 2 million that the lender does not consider is worth more than 1.5 million. You can only borrow at most 85% of 1.5 million, even though you actually put 2 million on the purchase.

It is possible to get a 100% loan-to-value ratio on certain special (and very few) occasions. One of these is if a rental right is to be converted to tenant-owner. Then it can sometimes be that the cost of the condominium is much lower than the market value and then it can get very good loan-to-value ratio.

Some calculation examples for loan-to-value ratio

Some calculation examples for loan-to-value ratio

It is the valuation of the home or the purchase price that, together with the lender’s rules, determines what the loan-to-value ratio will be. Suppose you buy a house valued at 1.25 million and that you pay 1 million for this. If you get a loan-to-value ratio of 85%, this means that the bottom loan will guarantee 85% of the price, which means that a bottom loan of max. 850,000 USD. The remaining 15%, ie USD 150,000, must then be financed through top loan or cash payment.

If the situation is instead so that you buy a house for 1.25 million but which is only valued at 1 million and you get a loan-to-value ratio of the same 85%, the mortgage will be secured for USD 850,000 even in this situation. In this case, you would thus need to finance as much as USD 400,000 of the purchase in the form of cash payment and top loan.

Summary of the loan-to-value ratio and what to consider

Summary of the loan-to-value ratio and what to consider

When you take out a mortgage, you obviously have to consider the loan-to-value ratio as it plays quite a big role. As we wrote earlier, a higher loan-to-value ratio of a bank can do more on the total cost of the loan than the difference in interest rates does.

It is also important that the home you buy does not cost too much in relation to how much it is worth as it may mean that you have to find a clearly larger sum elsewhere than what you can get as a mortgage. This is money that you must either have saved and can pay in cash or money you can borrow elsewhere, like an expensive top loan.

How much you can get in top loans also depends on your financial situation. The bank looks at what your finances look like and determines what they think is a reasonable loan ratio for you. Check with lenders what they offer and make your choices based on how good loan terms you can get.

Pending accounts? The negative effect of debts

How dangerous are debts. People lose their home mortgage, states start wars. The negative effect of debts makes our lives and economy at risk. Debts exist at the beginning only on a paper which commits in a contract to pay a credit. If not, the bank seizes it, for example your home. Who gets into debt to buy a car, buy a home or pay for vacations, is at greater risk.

Who is indebted to invest, for example as a lessor can and even have a profit.

Who is indebted to invest, for example as a lessor can and even have a profit.

 

From debts, a whole financial industry subsists. They negotiate with debt instruments and bet on bankruptcy.

A country is seriously threatened when its debts exceed its gross domestic product.

Likewise, a person is at risk when requesting credits that he cannot pay.

When we cannot pay the bills, it is there that the negative effect of the debts takes its course.

The risk increases over time. Not paying on time will cost you more interest.

Tips to free yourself from the negative effects of debts

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– Cut expenses. This means making sacrifices, not giving us as many tastes as we used to.

– Restricts the use of credit card. Rather try to pay as much as you can to lower interest rates.

– Reduce trips to restaurants or parties. If they invite you, nothing will happen if you say no.

– Compare prices of home or personal services such as the internet or your cell phone plan.

– Spend less, invest more. Find a way to use your money to make investments and even just what is necessary.

Manage a family budget and plan for tomorrow.

Manage a family budget and plan for tomorrow.

– Do not waste, on the contrary it saves. Saving will be essential to achieve a dream like buying a new house or a new phone.

– And finally, work with the cash culture

Where to find the most convenient refinancing loans?

That individuals have a disadvantageous loan. This isn’t always so strange today. This could happen for two reasons, the very first being that there were forget about offers at the time of the application for the loan and that person had used the first offered loan instead of the one that was the most beneficial. The second reason may be that advancements in the banking and non-banking markets have changed. That which was advantageous before may not be advantageous today.

How to solve the situation? Is actually pretty simple. It is possible to address a current bank or non-bank firm with a request for an advantage. If this does not meet with success, addititionally there is option number two, that is refinancing loans. In practice, it really is about transferring them somewhere else. In this case, it is necessary to look at 3 aspects right away. These are:

  • Amount of payment
  • Duration associated with repayment
  • Rate of interest

Since the refinancing of the loan emerges by a wide range of providers these days, it is good to know who will be among the best. That’s what we centered on. To begin with, please note that the info is valid at the time of composing and publishing this article.

Transfer of mortgage from Cashmolis

Transfer of loan from Cashmolis

The very first option we look at is usually associated with the largest and also the most widely known bank in the country. Transferring that loan from Cashmolis is the item that is definitely worth wondering and searching. This is because we are able to classify it as a very good option. The main attraction this is a total interest rate of five. 9 percent. But they is not going to disappoint other parameters that could be associated with the new loan.

Another plus is it is possible to refinance or even transfer an amount of up to CZK 700, 000. Depending on this particular, it is also a fact that you can pick from a very interesting maturity. Just for smaller loans, 12 months can come in handy. For the bigger to the largest, it is certainly useful that the amount could be repaid for up to 120 a few months, which is basically 10 years.

mYBank refinancing financial loans

mYBank refinancing loans

We go to an additional option, which is mYBank re-financing loans. This bank is principally known for its innovations and exactly how it can approach clients. And also this shows this possibility of re-financing. Those who apply for it can provide their loan quite a substantial advantage, thanks to an interest rate that will starts at 4. nine percent. The benefits are also authorized by other things where we are able to specifically include just the subsequent:

  • Charge for provision – zero CZK
  • Administration fee – 0 CZK
  • Early pay back fee – 0 CZK

With regards to the characteristics of the transferred mortgage, it is possible to transfer one hundred 1000 crowns less than in the previous situation. It is therefore possible to exchange the amount of 600 000 Czech crowns. From this is after that created a new loan, which could have a maturity of one season, or 12 months, up to an amount of 84 months. This is within the hands of the client themselves.

Eicredit re-financing loans

Eicredit refinancing loans

One of the most fascinating lenders of recent times. However, it could be called Zonky. The reason being it falls into the P2P loan segment, where those who have the status of traders for specific loan applications. The particular loan refinancing Eicredit display that applicants can each receive a new loan plus refinance an existing loan. This particular applies to the same favorable rate of interest as new products.

If we are specific, this particular P2P loan mainly draws in the opportunity to reach an interest rate associated with 3. 99 percent. In relation to the parameters of the moved loan, it must completely correspond to the parameters that this new loan may have. Particularly, we are talking about the maximum move of 500 000 CZK and take advantage of the offer associated with repayment, which, compared to the competition mentioned already starts with 6 months. The longest time period is 84 calendar several weeks.

OneLoan Financial institution Credit transfer

OneLoan Bank Credit transfer

We will a bank that has continued to be in the background of huge or small innovative variants in recent years. However , it should not have to get forgotten, as it clearly plus well shows that it has a great deal to offer to money searchers. The amount is very interesting. OneLoan Bank The transfer from the loan will enable the particular transfer of an amount of CZK 1, 000, 000. However the pros definitely does not finish there.

The eye rate that can be attained is not really neglected either. This is an excellent 2 . 9 percent. The particular loan can be advantageously actually very significant way. When it comes to repayment period, it will not dissatisfy. We can label it as being a period that is basically regular. This is clearly confirmed with the fact that the shortest time period is a year or a year and the longest period is certainly 96 calendar months.

Aquoris Bank ReLoan

Aquoris Bank ReLoan

Small, modern plus innovative bank. And as quickly as you learn, it is a financial institution that can be described as the one that can be convenient. Aquoris Bank ReLoan is our clear champion. It is true that the amount, it lags somewhat here. But it is not substantial, as the maximum amount could be transferred in the amount of six hundred 000 crowns. Furthermore, you will find only pros.

The first concerns the length of pay back. It starts at six months, which is useful for those who would like to get rid of their commitment as quickly as possible. The maximum maturity of 120 months, or 10 years, will be perfectly suited to anyone who chooses to transfer the largest amounts. And what about the interest rate? It really is 2 . 90 percent, that is the same as the previous option. However it should be added that Aquoris Bank ReLoan has to that end several percent more advantageous APRC, which we have to deservingly put it first.