As soon as a loan is linked to an object, it is a real estate loan.
 

In most cases, the banker also speaks of an annuity loan. This means that an annuity is paid monthly - an amount made up of interest and principal.

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The interest always refers to the outstanding balance. For example, if you have an interest rate of 1% pa (per annum) and a remaining debt of €100,000.00, the first monthly interest payment would be €83.33. Added to this is the repayment amount. This amount is also given as a percentage and is at best 2% pa – in this example €166.67.

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Since the annuity is made up of the monthly contribution of interest and repayment, this results in an amount of around €250.
 

In the following months, the remaining debt decreases and the interest portion decreases with each installment. At the same time, however, the repayment contribution increases, so that the monthly rate of €250 remains unchanged.

If you take out a real estate loan, you decide on a fixed-interest period - a period in which the interest rate may not change.

 

The bank adheres to this term. After the period has expired, usually after 10 or 15 years, a new interest rate must be negotiated. The bank will usually write to you and offer you a better interest rate.
 

However, because of the "lending value" you get an interest rate that other banks could beat much more easily. It is therefore worth comparing offers from different banks. The savings are enormous.

A forward loan is to be understood as follow-up financing. The only difference is when the financing is closed.

 

In contrast to "normal follow-up financing", which is usually sought and concluded weeks or even months in advance, a forward loan can be concluded much earlier.

For example, if you speculate that interest rates will be a lot higher in two years than they are today, you have the choice of taking out follow-up financing two or three years in advance.
Such advance planning can be very useful for large loan amounts.

As the name suggests, it is about the modernizations of the house. In this context, however, modernization has nothing to do with renovation.

 

That is precisely why modernization includes the word “modern”. Are you the owner? Then you may be familiar with the concern and question of how to repair damage to the roof, basement, windows, etc. But something doesn't necessarily have to break: A heating system has to be replaced after 30 years at the latest in order to adapt it to current standards - the TÜV for the house, so to speak.

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The bank also finances you, because you not only modernize your house with this loan, but also upgrade it. Accordingly, the value of the property increases and the bank's risk decreases.

Normally, all types of credit are entered as a mortgage in the so-called land register, for security. So a kind of deposit is deposited. In order to have a mortgage registered, you have to go to the notary and that costs money. This is time-consuming and annoying, especially for smaller sums. Therefore, there are also blank loans.

 

A loan, mostly for modernization, which can be paid out to you without a mortgage. The advantages are obvious: Since it is a real estate loan, you also have the same interest rates as with such a loan. In addition, you save three weeks for the registration, the appointment with the notary and the final payment date.