The professional modernization of a home often not only requires a great deal of planning, but is also often associated with considerable costs. In order to carry out the necessary construction measures and to be able to preserve the building, it is advisable to take out a loan for the modernization. This means that the expenses can be financed and the amount paid back in monthly installments.
Compare offers and opt for a good loan
The home owner has several options when it comes to choosing the right loan. For this reason, it is worthwhile to compare the loans. Particularly in view of the rising prices for energy, it can make sense in the long term to invest in modern building technology, which leads to a reduction in the monthly bills for heating and electricity. Good thermal insulation can also make a significant contribution to improving the indoor climate and reducing heating costs.
Finance the project with the installment loan
Some banks provide for entry in the land register when a loan for modernization is taken out. The property is loaned, which can have negative consequences. However, a loan can also be taken out as an ordinary installment loan. The term is usually between 12 and 120 months. It may be advisable to negotiate the loan for the modernization regarding the terms. When determining the monthly rate, you should calculate exactly what amount is available without getting into financial constraints. It should also be included in the contract that special repayment of the loan for the modernization is possible at any time and without additional costs. The annual percentage rate for installment loans ranges from around 2.9 to 13 percent and depends on personal factors. Due to the high loan amount and the long term with more extensive modernization measures, a comparison of the loans is particularly recommended in order to keep the credit burden as low as possible.
Use support programs for energy-efficient renovation
If you want to carry out an energetic renovation as part of the modernization, you can benefit from interesting funding opportunities. Bank issues subsidized loans and grants for the installation of plants that use renewable energies. With the ultra-modern house technology, the energy of the sun and geothermal energy can be used to supply the house. The installation of photovoltaics and combined heat and power plants as well as other energy-efficient technology is being promoted in Germany to help homeowners increasingly focus on alternative energy sources for modernization.
A loan for the modernization is granted by KfW up to the amount of USD 75,000. Depending on which energy efficiency house standard is achieved, which is based, among other things, on the primary energy requirements of the building, a repayment subsidy of up to 12.5 percent is granted. Another advantage of the support program is the cheap effective annual interest rate, which starts at 1 percent. This means that the modernization project can not only be carried out on particularly attractive terms, but it can also be invested in building technology that leads to savings.