Is there a cheaper place to pay interest than anyone else? How much do you pay for one pound of interest? I only know low interest rates. Favorable interest through online credit. Favorable interest rates: consumer credit via direct banks.
How do I get cheap home loan rates?
Cheaper interest rates? Is there a cheaper place to pay interest than anyone else? How much do you pay for one kilo of interest? I only know the low interest rates. You may want to interview people of interest. Most online offers are cheaper than those of local banks or housing associations, but of course they can also talk to you and take care of you individually.
Otherwise, you will receive a non-binding quotation from any financier with good creditworthiness – ask us about it and make your suggestions. Otherwise, the savings bank lures with low-interest loans. Because all interest rates are cheap at the moment, that should not be difficult. A good comparison of the various credit institutions should provide information. Instead, it is now necessary to set interest rates for a longer period of time and perhaps to increase the repayment.
How homeowners secure favorable interest rates for the future.
With a term loan, the property owner receives favorable interest rates for the follow-up financing. Preceding interest rates of less than two percentage points on home loans could only be dreamed of by previous generations of builders. For borrowers who are currently interested in follow-up financing, however, 1.5 percentage points and less are common. If you want to hedge low interest rates now, you should apply for a forward loan.
These are loans that the buyer only needs in one, two or three years – but whose interest he secured in advance, so to speak. A further advance planning is worthwhile in any case, explains the managing director of the consumer center in Bremen, Dr. Quebru: “Most offers are between two and three years before the end of the fixed interest rate.
Some providers grant forward loans for a timeframe of up to five years prior to the date of successor financing. “The sooner the term loan is taken, the higher the price is usually higher,” she says. “You have to expect an interest premium of at least 0.01% per calendar month.”
The historically low interest rates offer further opportunities to quickly and cheaply break away from residual debt. For example, it is possible to change the installment amount during the term of the contract – or to switch immediately to a full repayment loan. “For consumers who want long-term predictable security, full credit is interesting,” she says.
“Especially in the current low interest rate phase, it may make sense to keep the favorable interest rates until the end of the financing phase. “Of course, the single rates are greater to have fully repaid the loan at the end of the contract. The option of unscheduled repayment also leads to a reduction in the remaining terms.
But the modest additional costs are worthwhile – for oil expert Quebru, unscheduled repayments are “in principle an optimal means of using the available capital once a year to repay the loan debt”. Especially as some banks pay up to five percentage points more free.
“Those who neither repay fully nor have cash for special repayments, but consistently pay their installments, still have the opportunity to be more debt-free through increased repayments. Currently, many banks are demanding a minimum repayment of two percentage points per year – which is only recommended because the remaining maturity will last forever, with little repayment.
With a repayment of one percentage point, it would take 60 years to repay the loan. A high repayment amount is the optimal hedge against rising interest rates, “he explains. The higher the repayment rate, the larger the repayments will be. The Quebru’s tip: agree on a repayment rate of three and a total – ie interest plus repayment – of at least five percentage points.
According to experts, those who want to hedge the current conditions for as long as possible have the best chance of escaping interest rate hikes with a forward loan. With a lead time of five years and a ten-year term, borrowers have complete control over costs over a 15-year horizon. The consumer should only be aware of one thing: a forward loan is nothing more than a borrower’s decision on future interest rates.
Anyone who has made a forward loan in anticipation of rising interest rates in recent years has made a false offer because interest rates are still low. That the financial institutions are not expecting a rise in interest rates so quickly shows the currently low premium that the bank demands for term loans. But that can change at any time, she says: “As long as the European Sentro Bank does not raise the key interest rate for the USD area, mortgage credit prices will change only slightly.