The annuity loan is the best known and most widely used home acquisition loan. A comparison shows where you can get the cheapest interest rates. The annuity loan has a constant monthly installment, which is constant and consistent throughout the term of the loan. The interest rate is always based on the current debt. One reason why this form of loan is popular with many borrowers: Because of the constant rate, the costs can be calculated well. The repayment rate consists of the interest and the repayment. The interest burden decreases in the course of the payment, so that the repayment of the remaining debt is accelerated.

## Independent of the interest rate

This loan has a fixed repayment installment over the agreed period. This is independent of the interest rate. As opposed to the annuity loan, the interest is payable on a pro rata basis so that the borrower has to pay the repayment installment plus the interest. The annually due contribution is thereby reduced continuously. In the case of mortgage lending, this type of loan also occurs, but in the case of real estate, the annuity loan is often preferred.

## Loan that is not repaid at maturity

A maturity loan is a loan that is not repaid at maturity. The eradication takes place only at the end in a large final rate. Before that, only interest is due at regular intervals (usually every month).

As a hedge of the final installment, a building savings contract, a life insurance policy or another secure investment will be created in parallel. The amount paid out will then be used at the end of the term to pay the loan debt.

## Type of annuity loan

The building society loan is a type of annuity loan, which may, however, only be used for residential purposes. During a savings phase, a Bauspar credit of up to 50 percent of the required sum is saved, the remainder is paid out as a loan. A home savings loan is a particularly low-interest loan.

Its interest rate is fixed independently of the capital market for the entire loan term. Special repayments are possible at any time with a home savings loan.