Often prospective homeowners decide against a construction project and instead for the acquisition of an existing property. However, most single-family homes offered on the market are already older, which is why they no longer meet today’s standards in certain areas. This is especially true for the attics, which are often not expanded and thus have great disadvantage in terms of usability.
By means of removal and modification, this problem can be solved very easily. Anyone who decides, for example, for a dormer, can provide an enormous gain in space and at the same time significantly increase the incidence of light. However, such an expansion also has its price, it is often necessary to finance a medium five-digit amount or even more money.
Installment credit is not a good choice
Unfortunately, it often happens that interested parties actually resort to installment loans. Not infrequently, this choice is due to poor advice from the house bank. Installment loans are currently interest rate favorable and also quickly applied. No wonder such loans are often recommended.
There is another way
However, installment loans are still expensive despite their low interest rates – at least in comparison to the terms that attract a real estate loan. Corresponding loans are readily available in most cases; ultimately, only a first-ranking mortgage must be available – and depending on the amount of the loan and the nature of the transaction, it may even be possible for the bank to accept a subordinated mortgage.
Advantage of a mortgage loan
The advantage of having a mortgage loan is that it offers much better conditions than installment loans and thus it is often easily possible to reduce the interest burden by more than half. In addition, the loans are usually easily accessible, at least if there are no other loans that are very high. In addition, it should be noted that many banks only grant their real estate loans from an amount of at least 50,000 euros.