To find you the optimal mortgage in Frankfurt am Main, we will use our unique Hypofriend Recommendation Engine (Optimizer). But in the end, it helps you plan for a much sounder and safer financial future. Our consultations are unique in that they take our clients to new levels requiring fresh perspectives. We combine it with advanced interest forecasting techniques and financial insights to make suggestions as regards to the choices you can make. Of course, that is the outcome of the process, and if you already have set your eyes on a specific property, we will ask you those questions too.īut to give you the best financial advice we need to understand the bigger picture: how long do you plan to stay in the house, what is your income outlook etc. The most crucial difference between us and other mortgage brokers in Frankfurt am Main you will notice is that we ask you a lot of questions, rather than asking you the loan size and the mortgage product that you want. We are economists, engineers, and mortgage experts who together have built Germany’s most objective and advanced recommendation engine for mortgage advice. However, the bank will charge significantly higher interest rates.Īt Hypofriend, we have made it our mission to find the optimal mortgage for our customers in Frankfurt am Main. These conditions include, for example, a very good credit rating, a very high income, and an excellent location of the property. Under certain conditions, it is also possible to finance a mortgage in Frankfurt am Main without equity.
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Your down payment is the sum of the purchase fees in Frankfurt am Main plus the portion of the purchase price of the property that is not covered by the loan.įor a mortgage in Frankfurt am Main, the additional purchase costs are 10,98% or 8%, depending on whether you have to pay a real estate agent's commission or not. The LTV ratio is the ratio of the loan to the value of the property as estimated by the lender.
The amount of the down payment determines what is called the loan-to-value ratio (LTV). If you only pay the purchase fees with your savings, means that you borrow the entire purchase price of the property from the bank. In Frankfurt am Main, as in the rest of Germany, the equity you bring in should at least cover the purchase fees. We'll help you lay the foundation for your optimal mortgage. To find the right fixed interest rate for you, you should seek advice from our independent experts. Mortgage rate in Frankfurt am Main have been much higher in the past, and you may have to pay considerably more for the follow-up financing. Assuming it expires after ten years, you will need follow-up financing. If, on the other hand, you plan to live in your home for twenty years, you should fix the interest rate for longer. But if you plan to live in the property in Frankfurt am Main for only ten years and then sell it, your loan will cost you more than necessary. This is because the bank pays for the security of a long fixed-interest period of 20 years, for example, by charging a higher interest rate. It is either too short or too long for many real estate buyers, and that costs a lot of money. However, it should definitely be adapted to your personal situation. The fixed interest period gives you planning security. The lower the mortgage, the higher the equity, and the higher the property value, the better the interest rate. It sets the required loan in relation to the property value. The interest rate is mainly defined by the loan-to-value ratio. The property: The location of the selected property, the purchase price and the bank's assessment of the actual value have a substantial impact on the mortgage in Frankfurt am Main. If you make a bigger down payment, you will also reduce the interest payment over the life of the mortgage. On the other hand, the remaining mortgage is lower with a longer fixed interest rate than with a shorter one.ĭown payment: Usually, if you make a larger down payment, the bank will likely offer you a lower interest rate. As a rule of thumb, this means that the longer the fixed term, the higher the interest rate and the more costs you will incur. But banks will make you pay for this with higher interest rates. However, 15- and 20-year fixed interest rates are also possible. Many buyers opt for a 10-year fixed interest rate. The length of the fixed interest rate, the amount of the down payment, and the selected property have an influence on the mortgage in Frankfurt am Main.įixed interest rate: In Germany, you can choose how long you want your fixed interest rate to be.
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