2nd priority loan
Achieve a lower interest rate by refinancing expensive small loans into one loan.
This is how we help you:
Fill in the application form
It only takes a few minutes and is completely
free and non-binding for you.
We talk to the banks
Your advisor will talk to our partners and find the
best solution for you.
Receive a non-binding offer
Once we've landed the solution we
most believe in, we'll contact you for a
no-obligation quote.
How much can you save?
Not all debt should have a 25-year long term, and in some cases a 2. priority loans can be a good solution. Even if the interest rate is low by refinance small loans into the mortgage, there will still be a lot of money over time.
By combining into one loan of NOK 200,000, we show you a couple of examples below:
Loan example consumer loan: A loan of SEK 200,000, with a repayment period of 5 years, costs SEK 4,337 per month. The nominal interest rate is 9.99% and the effective interest rate is 11.18%. The loan then includes an establishment fee of NOK 995 and a term fee of NOK 45 per month. The cost of the loan is NOK 60,255 and the total repayment is NOK 260,255.
Loan example 2. mortgage loan: A loan of NOK 200,000, with a repayment period of 5 years, costs NOK 3,917 per month. The nominal interest rate is 5.75% and the effective interest rate is 6.74%. The loan then includes an establishment fee of NOK 1,500 and a term fee of NOK 45 per month. The loan cost is NOK 35,028 and the total repayment is NOK 235,028.
Here you can see that the difference between these two loan types results in a saving of 31,863 (60,255 – 28,392) The difference between the interest on a credit card (NOK 122,497) and a 2. mortgage (28,392), a total of NOK 87,469 has been saved.
When is a 2nd mortgage a good choice?
2nd mortgages are relevant if you need to collect expensive small loans, car loans, loans to delete payment remarks or want to borrow money for renovation or a project you want to pay off in a shorter time.
The loan amount is usually quite low and the value of the property is good.
This is a good option if, for example, you have various credit cards or consumer loans where you want to consolidate this to be able to pay off the loan faster and at the same time achieve a much lower interest rate.
Most consumer loans often have an interest rate of between 11-14% and most credit cards have between 19-23%.a 2nd mortgage has around 5.75-8%.
Four different credit cards with a balance of 50,000 each, with an effective average interest rate of 22.91% cost approximately NOK 5,389 each month for 5 years, total interest cost NOK 122,497.
How much does a 2. priority loan?
It is a higher risk for the banks to offer a 2. priority loan and therefore this is priced higher than an ordinary mortgage, but not to be much higher. You must also expect a fee for establishing the loan and registering the mortgage.
We at Eiendomsfinans help you map the entire debt picture. We have a pleasant conversation with you so that we can plan which solution suits you best.
What is a 2. priority loan?
→ A 2nd mortgage is a mortgage you take out in addition to the mortgage you already have.
→ The bank lending the second mortgage takes security in the vacant value between the current mortgage and 90% of the value of the property.
→ The loans can be in 2 different banks, or 2 loans in the same bank.
→ You will then have 2 mortgages to service, but preferably a shorter term of 2. priority loan.
If you default on your loans and there is talk of a forced sale, the bank that has 2. priority loans could claim their money back after the bank that has first priority has been repaid its loan.
Loan calculator 2nd mortgage
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This is how we help you:
Fill in the application form
It only takes a few minutes and is completely
free and non-binding for you.
We talk to the banks
Your advisor will talk to our partners and find the
best solution for you.
Receive a non-binding offer
Once we've landed the solution we
most believe in, we'll contact you for a
no-obligation quote.
Free and fast case management
With us, you will be assigned a dedicated advisor who will help you every step of the way. After
a pleasant conversation with you, we map out your financial situation.