When you buy a house, apartment or other immovable property, there is a minority who pay full price in cash. The most common is to finance the purchase through a combination of cash, a home loan in the bank and a loan on the property – a so-called mortgage.
You take out a mortgage from a serious loan provider, which gives you money to get a mortgage on the property as collateral for the loan.
What options do you have when you need to borrow money to buy a home?
For the financing or purchase of a home, the cash payment usually represents 5 per cent of the price, 15 per cent the bank’s loan and the mortgage the remaining 80 per cent.
A home loan is more expensive than a mortgage, and is usually an interest rate of 6-10 percent.
Therefore, it may be well worth it after a few years to change your home loan with additional loans, which you are absorbed into a loan. It requires that the house price has increased, or that it has paid so much for the loan, which is the accumulated free value in housing.
If you buy a cooperative housing can also take a so-called cooperative mortgage where the Bank will put in the same ratio – such a loan may also include the right to installment.
With a mortgage, you can borrow up to 80 percent of the cash purchase price, in the case of a full-year home.
In summer and holiday homes, it’s that you can borrow up to 60 percent of the property.
The loan may mature in 1-30 years, but this will vary.
In total, you can choose from three different types of mortgages:
Fixed rate bonds
With a fixed rate bond known the interest rate on loans throughout its length. It is debt interest, the day you buy them that determines how much you get paid.
Located in the bond rate 95, it means that you get paid 95 kroner to 100 kroner you borrow. In other words, there is an exchange loss of NOK 5 when we take out loans. It is therefore good if the price is as close to 100 as possible.
Fixed rate loans are usually more expensive than loans with variable interest rates. On the other hand, you can sleep more quietly at night, because we do not have to worry about interest rates rising.
With an interest rate adjustment loan, the interest rate follows the market. When interest rates are low, the man achieves the lowest possible performance. On the other hand, you will never be sure what the future will have to pay interest on their loans.
The most popular interest rate adjustment loan is the so-called F1 loan to be refinanced once a year. This means that the interest rate on the loan is fixed once every year in December.
Loans with interest loss.
The last form of mortgage loan is interest rate loan also known as collateral loan. With this type of loan attempt to combine the best of bonds and interest rate adjustment loans. The interest rate can be changed in line with the market, but only until it reaches the ceiling, for example, 5 percent – and then locked in the interest rate.
The interest rate on such loans is usually lower than on a fixed rate loan, but higher than in a variable. The interest rate on guarantee loans seen twice a year.
With a mortgage-free loan, only the interest and contributions of their mortgages must be paid on. It is possible to avoid paying mortgages of up to 10 years. The loan can, after 10 years, be replaced by a new installment-free salary, which will run for 30 years. In this way, it is possible that one period of validity will replace the other.
Deductible loans can be taken both as fixed rate bonds or interest rate adjustment loans.
Within a few months, a new type of home loan in the market, the so-called MAMI loan – particularly broad bonds. It is the banks that issue new loans, which are comparable to traditional mortgages. With loans, which are beyond the maximum duration, will also have banks and savings banks to the issue of mortgage loans.
It is still uncertain whether interest rates will be lower than on traditional mortgages. On the other hand, it is common for MAMI loans to only be able to mortgage 70 percent of the home value – however, this limit is expected to quickly increase to 75 percent.
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