An BGH loan can also be called a type of bond loan, which is in many ways different from a regular bond. If you are borrowing money for housing, it may be worth taking it as an alternative form of financing. Read more about the advantages and disadvantages of the BGH loan here. More commentary at pegasus-one.org
BGHs are particularly large for bonds and are thus considered to be a very safe investment for investors. SD bonds satisfactorily, to make sure they deserve the name, so that a number of requirements, as required by the EU’s capital adequacy directive. Unlike traditional mortgages, BGH loans are offered by both money – as a mortgage institution.
The main difference from the regular mortgage is that the interest rate on BGH loans is based on an individual credit rating – which is the same procedure as a regular bank loan. Unlike mortgages, which largely follow the market depends on the interest you will pay in the overall financial situation, credit history, etc. In essence, it is possible to say that the greater the risk the bank has for not getting its money back, the higher interest rates fixed. On the other hand, it is thus an obvious advantage for borrowers with a healthy economy that this possibility exists, of course, it works the other way. In addition, this interest rate setting can also be used for debate. The obvious drawback in this situation is that you as a borrower have no ability to review the results. You do not know how much you actually pay in interest and how much you pay for the money – or mortgage institution.
Similar to ordinary mortgages, you get a relatively low interest rate, because the bank, as collateral for loans, take out mortgages at home. However, with the loan process, you can borrow up to 80% of your home’s commercial property at a maturity of 30 years, using BGHs to loan 70% (as of July 1, 2009, they increased their ownership to 75%). In return, BGH loans offer unlimited duration and unlimited freedom installments. There are lower borrowed stocks, which allows to remove restrictions on maturity and amortization freedom. You can still choose to take 80% LTV, but then the traditional concepts come back to life with a limited period of no more than 30 years and a validity period of up to 10 years.
To a much greater extent, decide on loans to meet your individual needs. Interest in BGH loans has turned out to be much lower than expected because the changes were adopted. This may be due to the flexibility, which makes the loan uncalculable. There are simply too many options to consider for each borrower. There are so many benefits to the BGH loans, but it may be a good idea to get a financial advisor to consider whether these benefits will work best for your finances or whether you should consider another option. You can read more about loans and home financing here on the website.