# Calculating Credit With Equity

## Calculation of the loan with equity

Calculate your available equity here. The available equity as well as the target maturity or how much equity is needed for real estate financing? First, enter the purchase price, the monthly installment and the equity in the repayment calculator. Go to How is the equity calculated (step by step instructions)? - It is important to bring in as much equity as possible.

## Muscle mortgages as a cost-reducing part of the construction cost financing

The muscle loan is a service that the customer provides in the course of a construction project or a real estate acquisition. This personal contribution can consist of: With the provision of a muscle mortgage, the customer reduces the expenses incurred, as no funds must be procured and paid for the services or materials provided by him on the loan amount.

Thus, the borrower uses his power in the truest sense of the word as equity, thus increasing his equity ratio and reducing construction prices. The main advantages of a muscle mortgage are the reduction of the required loan amount. Own funds in the form of self-service are usually 15% of the construction costs.

As a customer, you should first think about what you can do and submit a detailed calculation during the contract negotiations with the EB. The likelihood that the muscle mortgage will be recognized as equity is higher, the more likely it is. In particular, builders with a wide range of craft talents can significantly reduce the labor costs of the craftsman by offering a variety of services on the construction site.

The main disadvantage of the client's own contribution is the time delay in the construction. Thus, the client is usually not able to carry out paint work as economically as a specially commissioned company, because he is busy and must bring this activity into his free time. Such delays can also lead to a double financial burden, since the customer has to set the rent for the building loan higher and at the same time has to pay installments for the construction loan.

In addition, there may be problems with the health insurance if he has not done the work properly and the damage occurs later. As a rule, the customer uses the offered family or friend offer to support him in his own work. In addition, the client must not overlook the fact that all construction workers are registered with the responsible BG Bauberufsgenossenschaft (BG Bau).

## What should I look for in the mortgage for muscles?

Anyone who wants to take over as a building owner part of the construction costs through a muscular mortgage, above all should present a health-promoting self-assessment and ask himself the question of what work he can really do expertly. The time and energy costs that have to be spent on the craftsman's own work are underestimated by many.