New types of loans appeal to more and more home owners

This is how a mortgage is screwed together

A priority loan works in several ways like a mortgage loan, but the crucial difference is that you borrow the money directly from the bank and not from a mortgage institution, which raises the money by selling bonds to investors.

You can use it for home purchase or as an additional loan in the free value.

The duration of the loan can be up to 30 years, and the bank takes a mortgage on your home. For a supplement, you can get 10 years of grace period.

The interest is determined for three months at a time and can therefore move quickly both up and down.

The starting point is the so-called reference rate Cibor3, which is fixed in the market. On top of that comes an interest supplement, which the bank itself controls.

Some banks have only one rate on the interest supplement, while others have an interest rate spread. If you achieve the lowest supplement, you can get a bank loan that is cheaper than a similar mortgage loan.

How much you have to pay in addition depends on, among other things of how strong your finances are, whether you have more business with the bank and how much you need to borrow in relation to the value of your home.

You can choose to repay over 30 years, but also pay extra to reduce the debt faster.

Do you want to redeem loan, you can do it at a rate of 100 – that is, by paying the face value of your debt.

More banks offers that you can attach a savings to your loan, where you get an interest rate that is typically 0.5-0.7 percentage points lower than the one you pay on the debt.

In that way you can offset your deposit against the debt and reduce your interest expenses, but still have access to the savings.

Source: politiken.dk

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