Assessment of financing offer 1.58% 20 years

2016-10-12 11:32:05

Since I don't dare to look 15 years into the future and would call anyone who claims that a charlatan, only 20 years come into question for me in this case.

And because you can't look 15 years into the future, you take 20?

A part will still remain after 15 years as well, e.g. half of the loan.

Exactly, so how is the rate supposed to double? I still have 50% of the original amount on which I now have interest and repayment. If the rate were twice as high, I would have to have a multiple higher repayment.
And there is nothing wrong with a repayment period of ~30 years, I never said that. What I said is, if after 15 years I have hardly paid anything off, I will get a problem, and still won't be finished after 30 years.

2016-10-12 11:34:34

I will never be able to refinance as cheaply as now.

Crystal ball available? Even the banks do not know where it is heading. The KFW systems, for example, were not adjusted to negative interest rates for nothing.

The whole thing is a bet on rising, stable, or falling interest rates. A 20-year fixed interest rate is a bet on rising interest rates. 10 years is a bet on falling or stable interest rates, and 15 years is somehow the security that no matter how the interest rate develops, you are not completely off.

2016-10-12 11:44:51

I was faced with the same question about 4 years ago, by the way. Basically, the financing was planned for 30 years, but it was clear that special repayments would be made. I then decided against the 20 years and for the 15 years. In the meantime, there have been some salary adjustments, so that at best I paid off the loan after 15 years. I probably would have been better off with the 10-year option.

2016-10-12 11:45:48

Don't forget inflation, I suspect in 20 years €1500 will only feel like a €1000 burden, that's great

2016-10-12 12:05:17

And because you can't look 15 years into the future, you take 20?

Exactly, so how is the rate supposed to double? I still have 50% of the original amount on which I now have interest and repayment. If the rate were twice as high, I would have to have a repayment that is many times higher. And there is nothing wrong with a repayment period of ~30 years, I never said that. What I said is, if after 15 years I have hardly paid anything off, I will get a problem and will not be finished even after 30 years.

I simply estimate, probably not the only one, that interest rates cannot fall much further. Otherwise, you would almost be given money to take out a loan.

2016-10-12 12:11:38

I just guess, probably not the only one, that interest rates can't fall much further. Otherwise, you would almost be given money to take out a loan.

That exactly seems very unrealistic, but it's happening in the opposite direction right now. It's called a penalty interest if you hoard too much money.

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Assessment of financing offer 1.58% 20 years

RobsonMKK

Musketier

Musketier

sevennine

Peanuts74

matte