Mortgage and loan news

Vacation loan

Everyone would like to be able to switch off once from the everyday life. However, since a vacation is usually a rather expensive pleasure that not everyone can afford out of pocket at the first go, banks offer the so-called vacation loan. This works similarly to a normal loan, but obviously has a different purpose than, for example, a construction loan.

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What exactly is a vacation loan?

With a vacation credit can be taken up exactly the same as with a credit for a car, a loan with a bank. Through this financial difficulties can be bridged, which have arisen, for example, due to unemployment or an unforeseeable loss of work due to illness. This type of "small loans" are usually available from a sum of 500€.

Mortgage and loan news

Real estate valuation in the context of an inheritance

Real estate market / real estate valuation: There are very many reasons to have a real estate valuation carried out for a real estate object. Apart from the always necessary evaluation in the context of a planned house sale or with the purchase of a house the inheritance controversy, the divorce, the donation of a real estate or the forced sale are further important reasons to make a real estate evaluation. This article is about the real estate valuation in the context of an inheritance.

In the context of a real estate evaluation for the regulations of an inheritance it is to be distinguished whether it concerns an individual heir or a community of heirs. Naturally, in the case of a single heir, the highest possible value of the property is not as desirable (inheritance tax) as in the case of a community of heirs, where everyone wants to get the maximum for themselves. In any case, an independent real estate valuation must be carried out by a professional.

Legal regulations in the case of inheritance by an heir

The legislator prescribes for the inheritance, like also the donation of real estates, a valuation of the real estate. The state's interest here is primarily in the achievable inheritance or. Gift tax. Inheritance tax depends on the market value and the underlying family relationship.

Mortgage and loan news


Who would like to build or buy a house, should bring along for it ideally own capital funds, thus saved money or a building savings contract. After all, it is an important component of real estate financing. A rule of thumb says that you should only think about buying or building a property when you have about 20-25% of the expected costs as equity capital. Here you can learn more about the different forms of equity as well as real estate financing without equity capital.

Possible variants for equity

The so-called equity capital can be available in different forms. The classic variant is that you have saved money, which is in a savings account. Alternatively, you may have inherited a certain amount of money. In addition to these bank and savings balances, cash is also part of the equity capital. Savings bonds and building society contracts are another way to prove equity capital. The building savings contract is not very popular nowadays, but still there are many people who once got such a contract from their parents or relatives. In the meantime, there is hardly any interest left on the saved credit balance. Craftsmen still benefit, however, because in their case the employer always pays in the same amount that is deposited as well. In any case, the main purpose of the contract is to finance a property. However, you can also liquidate this without a property and have the amount paid out to you.

In addition, land that has already been paid for and construction services that have already been paid for also serve as equity capital. Likewise, you can validate life insurance, shares, mutual funds and securities.

Mortgage and loan news

Interest rate

Interest rate level

Interest rate is the amount of interest on a capital investment or a loan.

Although the interest level can be fixed, it is not the same at all times, but is always subject to certain fluctuations. There are various reasons for this.

Factors influencing the interest level

A very important factor is the general economic situation. If it is relatively good, the general interest level will be rather high, in the opposite case rather low.

Mortgage and loan news

The right to cure notice

If you are behind in mortgage payments you are in “default.” If you pay the bank * all the payments you missed, you can “cure the default”. The bank must send you a notice that says you have the right to pay the money you owe. The notice may use the word “arrears.” “In arrears” is another way to say that you are behind in your payments. This notice is called a Right to Cure Notice.

Both your mortgage and state law, MGL ch 244 s. 35A, say the bank must give you a Right to Cure Notice. The bank may send you, one Right to Cure Notice that meets both your mortgage and the law’s requirements. Or, the bank may send you two Right to Cure Notices.

They may send 2 notices at one time, or they may send the notices weeks apart. If the bank sends you both notices at the same time, you have up until the date that is furthest away to catch up on your missed payments.

Mortgage and loan news

Tips to pay your mortgage off faster and save thousands

A little can go a long way. Now that you have a mortgage it’s important to understand a little about compound interest. When you save money you earn interest, not only on the original amount but also on the interest that you’ve earned. What few understand is that this “interest on interest” grows exponentially.

It’s the same, but turned upside down, with the mortgage. The more you can pay off, the less interest you will be charged and, just as each little payment on your savings adds to the “interest on interest” so each little payment subtracts to the interest that the bank can charge.

With that in mind, there are few things that you can do get to get rid of the mortgage sooner. And keep in mind that a little will potentially make a huge difference in the end.

Mortgage and loan news

What to know before taking out a home renovation loan

home renovation loan

Many people believe that investing in your home is never a bad idea. One way in which you can invest in your property is through a home renovation loan. Home renovation loans can either be an important tool for leveraging value-adding projects or provide you the means of getting emergency repairs taken care of. Whatever the case, it is important to know how you can best use a home renovation loan to improve your property.

Ways to Finance Home Renovation Loans

When it comes to securing financing for home improvements, there are several instruments that can help you get the funding you need:

  • Home Equity Line of Credit (HELOC) – this is a revolving line of credit (works similar to a credit card) that uses the maximum value of your home’s equity as collateral. You can use this line of credit for anything, from paying for a wedding to financing a truck, but it makes a truly outstanding option for home renovation, as the borrowed funds will be used to add value to your property. As the maximum value of your home will likely be significant, this may be a good financing option if you have an ambitious remodeling project to tackle.
  • Home Equity Loan – this loan differs from a HELOC in that it does not revolve each month. However, you should see lower interest rates than with a HELOC. The amount you qualify for in a home equity loan will be based on the difference between your home’s maximum value and the remainder of your mortgage. Essentially, you will qualify for a bigger home equity loan if you have been paying on your house for longer. You can take out all or part of the home equity loan that you qualify for. This may be a good option for renovation projects in which you need a set amount of cash to complete.
  • Personal Loan – if your home equity options are not appealing, there is always the possibility of taking out a personal loan to complete your home renovation. While the interest rates will be higher for this product, it can be a good option for smaller projects that you plan on completing and paying for quickly.

Home Renovation Loans are Important for Real Estate Investors

When the goal is to buy a fixer-upper, make a series of upgrades over the course of three to six months, and then sell at a substantial profit, a home renovation loan is not only good–it might be necessary. Using this method, a home renovation loan can be used to finance all of the home improvements and quickly be paid with the capital gains from the house sale.

Mortgage and loan news

Comparison of endowment life insurance

Endowment life insurance comparison

An endowment life insurance comparison is unlikely to be obtained from your insurance agent around the corner. Here only an online comparison can help to determine the best conditions.

Endowment life insurance online

Many think endowment life insurance is an outdated model in today's world. With the endowment life insurance, however, the financial risk of a family is absorbed, if the main earner suddenly dies.

Especially for couples with children, endowment insurance is existentially indispensable. At the same time, the endowment policy still saves a small amount of assets that can be used in old age, such as when you start receiving pension payments.

Mortgage and loan news

7 Home buying tips every veteran needs to know

7 Home Buying Tips Every Veteran Needs to Know

For most people, buying a home is an exciting and emotional milestone. This can be especially true for veterans, who have likely spent years traveling between bases, and are looking for a place to call their own finally.

While the home buying process can be overwhelming, there are many resources available to make it simpler and more affordable for those who have served in the military. If you’re a veteran or active military personnel and you’re starting the quest for your new home, be sure first to consider these seven important home buying tips.

1. Understand the VA home loan

Most veterans are eligible for a VA home loan provided by private lenders but backed by the U.S. Department of Veterans Affairs. A mortgage that requires $0 down, VA loans are a competitive and affordable way for veterans laying down roots to save. VA loans are perfect for veteran first-time homebuyers who do not have enough money for a down payment. Credit requirements are looser than traditional mortgages and a bonus for those who don’t have a long credit history. Further, VA loans don’t require private mortgage insurance (PMI) – a typical insurance form for those who can’t put down 20 percent.

Mortgage and loan news

Buying your first home


Congratulations! You’ve officially entered full-fledged adulthood if you’re ready to buy your first home. The prospect of purchasing your first home might feel overwhelming, but with these tips and tricks you’ll be well on your way to getting into a new home and beginning the next chapter of your life.

Get Pre-Approved

The first step in your journey should be getting pre-approved. This will help you understand how much money you qualify to borrow for a home. Imagine this: You tour a home and fall in love with the sprawling fields and lofted ceilings. You want to put in an offer but you’re devastated when your offer is rejected because you don’t have a mortgage pre-approval.