If you have property in the form of an apartment, a house or a rented property, it must always be maintained. It is then often necessary to install new heating or new windows. This is part of the modernization of a house. An explanation over at awryt.com
If you have rented the property, you can transfer these costs to the rent. If you live in the house or apartment that is to be modernized, you have to bear the costs yourself. The fact is, however, that when modernizing, you always have to pay the costs and can only get these reimbursed through the upcoming rental payments.
What to do if there is insufficient equity capital for the modernization?
In such a case there are loans for modernization. However, these are usually offered by banks and lenders more cheaply than an installment loan. In addition, they can be obtained in small amounts from $ 2,500.00 in loan money. This is not the case with mortgage lending, for example.
For a modernization loan, it is usually sufficient to present the last three salary certificates so that the lender can grant the application. An entry in the land register is usually not required by the bank. If this is the case, a comparison can also be obtained from other credit institutions. Because the costs for notary and registration are then borne by the borrower and can be avoided.
What is the cost of a modernization loan?
The cost of modernization loans is definitely cheaper than a normal installment loan. Depending on the term, which can be between 10 and 15 years or longer, between 3 and 4% APR will be due on the loan amount. This varies from bank to bank. Therefore, you should compare several banks in advance and then choose the cheapest one, which does not necessarily have to be your own bank. If the term is longer, the annual interest rate is also higher.
If you can cope with a shorter term, the entire loan is also cheaper due to a lower effective APR. You can also apply for a loan for the modernization if you have not signed a home savings contract. However, the bank may require such a degree when applying for the loan for security reasons.