Can You Raise Loans for Over 100? Therefore, Course 100 is so Crucial.

Can you raise loans for over 100? See for an illustration

It is one of the questions we often get here at Financesier and the answer is actually easy. No, you can NOT raise loans for over 100.

If you could, so will It becomes a real, real, and really good business.

We can just take one example if the course was 110, then you could borrow 1 million DKK for only 900,000 kr.
Immediately you will be able to terminate the loan at a price of 100 and you will have earned 100,000 minus possibly. fee etc.
That is, DKK 100,000 which is tax-free and a nice harvest on this small number. BUT this is not possible, as the Mortgage Credit Act states that no bond loan exceeding course 100 must be paid, therefore they always close at rate 100.

If you could take out a loan above 100, then investors would demand very high interest rates for investing in bonds that were at such high risk. So it’s good for everyone that the system is made like that.

As a borrower for you namely a low interest rate and as an investor you get a high security for your money.

What is a price point worth? And which course to borrow.

What is a price point worth? And which course to borrow.

When taking an example of one million kroner, a course point corresponds to approx. DKK 10,000 So it is a question of raising a bond loan as close to price 100 as possible. Since only a price point can change much in your residual debt. If we still take a starting point of DKK 1,000,000 and you raise the loan in price 95, you will owe DKK 1,050,000 before you start paying off the loan.

Most people recommend that you take out loans at around courses 96-99, as the risk of doing the course is high. Should the interest rate fall, your residual debt will increase and if you need to get out of the loan, it can be expensive.

If you have been lucky enough to get a loan offer with bonds that are now above course 100, then you will still be able to get the loan. Even if the price increases at a price of 105 or more, as long as the loan offer applies. So once in a while, some are lucky.