Since our house was built, it has increased in value. Now I ask myself whether this has any advantages (except for a sale)?
For example, our house was lent 70% by the bank through a mortgage. The second mortgage would have to be amortized within 15 years so that the entire mortgage does not exceed 65% in 15 years. Can I now use the increase in value to cancel the 2nd mortgage (see sample calculation below)? If we were interested in it, we would no longer have to pay the amount for the amortization and would have tax advantages since the debt would not decrease through the amortization. If we want to change the mortgage after it has expired, it would be an advantage to only do this with a 1st mortgage, as many providers only finance 1st mortgages.
Are my thoughts correct? And can I even ask for such an increase in value from the bank?
Calculation example
Originally
Purchase price: 1 million
Mortgage: 700K
Own funds 300K
= Lending 70%
New situation after 5 years
Market value: 1.2 million (let’s assume this value was checked by an appraiser)
Mortgage: 700K
Own funds: 500K?
= Lending 58.3% (no more amortization necessary)
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