Fixed loan option for the realization of gains
Feb 19, 2009
A fixed loan is ideal for real estate, especially in times of interest rates below 5%. It is a special form of annuity, because it also consist of one share and one redemption share of interest exists. Special feature of this loan is that during the period only the interest is paid but not the eradication of proportion.
A tip: The interest should be at low level, long-term to be defined. The redemption share will be during the repayment period in a capital-forming life insurance, equity or a contractual savings invested. That is why the loan, a fixed combination of two treaties, once the loan agreement and, secondly, the life insurance or other. At the end of the term of the loan will be in one lump sum from the example Life Insurance settled. For this reason it is called fixed loans bullet maturity loans. The irony of the matter is, if his money is well spent, one in this manner also may realize profits.
This loan is suitable especially for borrowers to finance a foreign property in use, as these tax advantages. Disadvantage is that after the expiry of the deadline fixed interest rate hike risk. Another problem may represent the shortfall.
This means that if after the expiry of the loan agreement, the sum paid to the example Life still is not enough or the building contract has not yet been Zuteilungsreif is to the credit to be paid back entirely. Then you have here is a follow-on financing of the legs, which make a substantial financial overhead can mean. The course also presents a significant risk and therefore should only be financially well-heeled borrowers for this form of financing decisions. On the other hand, if the money was profit, you can from this increase in funding also go out.
Author of this article: Esther Wagner
Submitted on: 2009-01-06
A tip: The interest should be at low level, long-term to be defined. The redemption share will be during the repayment period in a capital-forming life insurance, equity or a contractual savings invested. That is why the loan, a fixed combination of two treaties, once the loan agreement and, secondly, the life insurance or other. At the end of the term of the loan will be in one lump sum from the example Life Insurance settled. For this reason it is called fixed loans bullet maturity loans. The irony of the matter is, if his money is well spent, one in this manner also may realize profits.
This loan is suitable especially for borrowers to finance a foreign property in use, as these tax advantages. Disadvantage is that after the expiry of the deadline fixed interest rate hike risk. Another problem may represent the shortfall.
This means that if after the expiry of the loan agreement, the sum paid to the example Life still is not enough or the building contract has not yet been Zuteilungsreif is to the credit to be paid back entirely. Then you have here is a follow-on financing of the legs, which make a substantial financial overhead can mean. The course also presents a significant risk and therefore should only be financially well-heeled borrowers for this form of financing decisions. On the other hand, if the money was profit, you can from this increase in funding also go out.
Author of this article: Esther Wagner
Submitted on: 2009-01-06
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