Mortgage

• FICO Score
• Minimum credit score
• What lenders like to see
• FHA Loans
• Interest rates and your credit score
• The Bottom Line

Your credit score, the number lenders use to estimate the risk of extending your credit or loan, is a key factor in determining whether you’ll be approved for a mortgage. The score is not a fixed number, but fluctuates regularly in response to changes in your credit activity (z. B. if you open a new credit card account). What number is good enough, and how do the scores affect the interest rate you offer? Read on to find out.

FICO Score

The most common credit score is the FICO score, created by the Fair Isaac Corporation. It is calculated using the following data from your credit report: Your payment history (which represents 35% of the score), the amounts you owe (30%), the length of your credit history (15%), types of credit you use (10%) and new credit (10%).

Minimum credit value

There is no “official” minimum credit score, as lenders can (and do) consider other factors when qualifying for a mortgage. You may be approved for a mortgage with a lower credit score if, for example, you have a solid down payment or your debt load is otherwise low. Since many lenders see your credit score as just one piece of the puzzle, a low score won’t necessarily prevent you from getting a mortgage.

The washing machine is broken, a new car is needed, and the fast notebook should be financed: In these cases, it is obvious to take out a loan for financing. Finally, interest rates are still extremely favorable. You don't want to touch existing reserves, if any, for this purpose. But attractive interest rates and good conditions are usually only available with a good Schufa score.

So what do you need to know around the Schufa score and how do you find out how a bank ranks your financial reliability? Here you can find out why a good credit rating is important, what the Schufa score shows and how you can successfully improve it.

Why is the creditworthiness so important?

Creditworthiness means creditworthiness, and a bank means this term quite literally. Before your bank signs a loan agreement with you, it wants to know whether you repay your debts on time and as agreed, i.e. how creditworthy you are.

This is a very individual decision. Think about what is important to you: for example, flexibility, issues of inflation, modernization, neighborhood, location … After all, for most people, buying or building a property is the largest financial investment in life. This must be well thought out and prepared. The financing strategy in particular plays an important role here. As a rule of thumb, you should have at least 20 to 30 percent of your own capital saved up.

How to save for your own four walls in the first place?

There is no magic formula here. Overnight or time deposit, a fund savings plan – it is best to ask for advice. Above all, it's important to start early so that the property is debt-free before you retire. Experts predict an average savings period of about ten years and a repayment period of about 15 years. There are many setting wheels for you here, especially in today's low interest rate environment. A suitable form of savings is also a Riester home savings contract. The state would like to support your old-age provision with the subsidy. In principle, everyone who is compulsorily insured under the statutory pension scheme is entitled to the Riester subsidy, d. h. Employees, but also trainees. The state allowances (basic allowance: 154 euros per year) increase the amount saved. Career starters under the age of 25 receive 200 euros as a one-time payment in the first year. You can deduct payments into your Riester home savings contract as special expenses for tax purposes – up to a maximum of 2.100 euros per year. Good for families: Non-working spouses with their own contract also receive the subsidy. For children born since 2008, you receive an annual allowance of 300 euros. You can easily conclude such a contract with us.

Can I also use capital-forming benefits?

If you receive capital-forming benefits (VL) from your employer, you can also use them to save for your own home and put them into a building savings contract. Good to know: If your income is below a certain limit, you also benefit from the employee savings allowance as a bonus on the VL. For unmarried persons, the limit is z. B. at 17.900 euros – then you receive up to 43 euros savings allowance (9 percent) per year.

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More time. Less taxes.

Since tax laws as well as tax practice are constantly changing, it is very time-consuming for taxpayers to keep track of everything. As professionals, we deal with the subject matter on a daily basis and know our way around the tax jungle.

Thanks to our cooperation with excellent tax experts, we know exactly what we need to pay attention to in order to get the best possible results for you – regardless of whether you are a pensioner, trainee, self-employed or employee. Our offer is also aimed at singles, married couples and registered partnerships.

When people lose track of their payment obligations, they risk falling into the debt trap. With the help of a structured approach and comprehensive budgeting, they can reduce their debts. The prerequisite for this, however, is always that they get an accurate overview of their finances and plan their expenses and debt settlement well.

FAQ: Reduce debts

Start by listing all debts accurately – sorted by creditors and claims. Also, document all income and expenses and use this as a basis to determine what budget and how much money you have available to reduce debt. In the next step, you can create a debt settlement plan in which you explain exactly how you want to pay off your debts. Present this plan as a proposal to your creditors.

Who will help me pay my debts?

KfW promotes the construction, purchase or renovation of real estate with favorable loans and grants. An overview of the most important funding options.

Published on 27. Oct. 2020

The Kreditanstalt fur Wiederaufbau (KfW) promotes the purchase of residential property with various loans and grants. With the right KfW subsidy, you can save a lot of money when buying real estate. We show you what KfW subsidies are available and what conditions apply.

There’s a lot of talk about title loans, but there’s not nearly enough about the good they can do when someone is short on cash. Title loans in canton, OH are an incredibly easy, stress-free way to get a short term loan when you need money now.

When it comes to title loans, ohio borrowers can get their money fast. An auto title loan estimate is often instant, and loan funds can be transferred to your account in as little as 24 hours, depending on the specific loan. These short but readily available loans are ideal short-term financial solutions, perfect for getting borrowers to their next payday when tough financial times hit.

These loans do not function like long-term loans from a bank and are not intended to serve the same purpose. Instead, they have a short life, often less than 60 days, and they allow borrowers to cover expenses that arise when the money isn’t quite in the bank yet. In this way, title loans are often a lifeline for borrowers who need cash faster than a bank loan can provide, or for those who simply feel they have no better options.

• A place to protect and grow money
• Data consumption and real estate purchase
• His first deal
• Later acquisitions
• Financing its acquisitions
• The Bottom Line

At the age of twenty-five, Grant Cardone came out of a rehabilitation center after a battle with drug addiction. Five years later he became a millionaire. Today, at age 58, Cardone is an internationally known sales trainer. His main company, Cardone Training Technologies, provides Fortune 500 companies, small businesses and entrepreneurs with an interactive sales training platform.

While he is best known for his success in helping companies increase revenue, Cardone has almost single-handedly built a real estate empire over the past two decades. Its investment vehicle, Cardone Acquisitions, has been involved in more than $425 million worth of real estate transactions, and the company currently holds $350 million in multifamily properties throughout the U.S.

Here's an overview of how Cardone built his multi-million dollar real estate empire without raising outside capital from people outside his close family members, who own less than 2% of the Cardone Acquisitions portfolio.

A condominium with 3 or 4 rooms, 100 m 2 in size, today quickly costs a million francs in a good location. At first glance, that's a lot of money. But the investment is worthwhile – buying is in most cases cheaper than renting. In addition, those who rent do not increase in value. And real estate is relatively safe compared to other investment options.

Up to 18 percent cheaper

The 2019 Credit Suisse real estate study shows that home ownership is almost always the more affordable form of housing, even with the current high real estate prices. If you calculate the full costs, including maintenance costs, for example, you can save an average of 18 percent with a condominium compared to a rental apartment. The reason for this is, of course, the still very low mortgage interest rate. This is unlikely to change, at least in the near future. Indicative interest rates for short-, medium- and long-term mortgages have fallen further since the beginning of the year. Rates for ten-year mortgages are at a record low of 1.30 percent and five-year mortgages are also at 0.99 percent. Even two-year fixed mortgages are at a low level of 0.93 percent.

The Credit Suisse Real Estate Study 2019 shows that home ownership is almost always the more favorable form of housing, even with the current high real estate prices.

You have just moved or finally want a change of wallpaper in your own four walls and of course your apartment should be particularly beautiful. You dream of a bright living room, want to furnish your rooms in tasteful colors, a new carpet is needed and you have ideas for three apartments.

But of course, moving, renovation and redevelopment are always associated with extreme financial burdens. How you can furnish your apartment cheaply and save on the dream apartment, you will learn here – in five simple tips.