bolån

Bolån, meaning mortgage loan in Swedish, is a loan taken out to finance the purchase of real estate, typically a home. It is a long-term secured loan, where the property itself serves as collateral for the lender. This means that if the borrower defaults on the loan payments, the lender has the right to sell the property to recover their losses.

The amount borrowed, known as the loan principal, is repaid over a set period, usually ranging from 10 to 30 years, through regular installments. These installments typically include both interest and a portion of the principal. Interest rates on bolån can be fixed, meaning they remain the same for a predetermined period, or variable, meaning they fluctuate based on market conditions. Many borrowers opt for a combination of fixed and variable rates to balance predictability and potential savings.

When applying for a bolån, lenders assess the borrower's creditworthiness, income, and the value of the property. A down payment, a percentage of the property's purchase price paid upfront by the buyer, is usually required, with the bolån covering the remaining amount. The size of the down payment can influence the loan terms and interest rate offered. Additionally, borrowers often need to factor in other costs associated with homeownership, such as property taxes, insurance, and potential maintenance.