Forward loan – What is it about and how to get it?



Interesting facts about the forward loan

Interesting facts about the forward loan

A forward loan is a special type of follow-up financing. The loan can be concluded directly with the house bank. Of course, it is also possible to take out the forward loan with another local bank, a direct bank or an internet mortgage lender.

The amount of the loan will represent the remaining amount of debt that remains on the expiry date of the old loan. The new financing is usually paid out on the expiry date. A direct transfer to the old bank can also be issued to settle the remaining amount.

 

What is the interest rate on the forward loan?

What is the interest rate on the forward loan?

The loan enables borrowers to secure the current market interest rate. This financing is taken up before the fixed-interest period for the old loan expires. Accordingly, it is a follow-up financing that is concluded up to five years before the expiry date of the old loan agreement. Accordingly, borrowers can benefit from securing the current interest rate.

The interest rate results from:

  • the market interest rate
  • the interest premium

The lender calculates the premium because it freezes the current interest rate. The following applies: the longer the lead time, the higher the loan interest will be.

Checklist: This is how it works with a loan

Checklist: This is how it works with a loan

In order to be able to negotiate the best possible terms in discussion with the bank, good preparation is essential. With the additional help of this checklist and our SSL certificate-protected home credit calculator, you can calculate your budget exactly and go well prepared to the advisory interview at the bank. This financing is taken up before the fixed-interest period for the old loan expires. Accordingly, it is a follow-up financing that is concluded up to five years before the expiry date of the old loan agreement. Accordingly, borrowers can benefit from securing the current interest rate.

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