The house price breaks records. This can work to your advantage, even if you are not moving. You may be eligible for a lower mortgage interest rate.

House prices break all records

House prices break all records

The house price keeps breaking new records. Houses have never been more expensive than they are today.

Homeowners notice the increased house price mainly by the Good value. This annual estimate of the market value of the home is used for various taxes. It is not for nothing that homeowners sometimes object to reducing the Good value and therefore the tax.

A higher house price can also work to the advantage of the homeowner, even if you are not moving.

Let the increased house price work to your advantage

Let the increased house price work to your advantage

Due to the higher house price you can qualify for a lower mortgage interest. This is because lenders base the mortgage interest partly on the amount of the mortgage in relation to the home value. This is also referred to as the risk class.

The lower the risk class, the lower the mortgage interest rate. By paying off, but also with a higher house price, you can therefore qualify for a lower mortgage interest.

Reduce mortgage interest? Take the initiative yourself

Reduce mortgage interest? Take the initiative yourself

You do not have to wait for a new interest rate proposal from the bank at the end of the fixed-rate period. With most lenders, it is possible to lower the mortgage interest rate in the meantime. Lenders use different risk classes with associated different interest discounts. This may be a reason to close your mortgage. The mortgage interest rate with another lender may drop faster and cheaper with you during the term.

A number of progressive lenders automatically adjust the mortgage interest rate if the risk class has fallen. With most lenders, however, you must keep an eye on this and submit a request for a reduction. The most recent Good assessment is often sufficient for this. Occasionally a new appraisal report will be requested.

Realizing increased house prices

Realizing increased house prices

It is also possible to cash in on the increased house price. For that you can of course sell the property. You must take into account that a possible next home is also more expensive. And with the shortage on the housing market, the new house is not just found.

Overvalue also offers room to increase the mortgage, for example to finance a renovation or energy-saving measures. And with mortgage products such as the cash-in mortgage and the eating-out mortgage, you can use the surplus value as a supplement to the pension.

For homeowners whose homes have been flooded for a long time, rising house prices mean that their mortgage options have grown. Relocating and transferring the mortgage has become easier for them.

 

Leave a Reply

Your email address will not be published. Required fields are marked *