kati1337
2022-04-16 21:36:35
- #1
As of today, KFW-124 is already at 2.34 for a 10-year fixed interest period. Nevertheless, I agree with you that it is currently attractive. We are currently considering how long we should fix the rate. 10 years is pretty much ruled out. We are wavering between 15 and 20. 15 would be at 2.55%, 20 at 2.72%. The difference is not huge, but over the terms, the interest payments differ significantly. My gut feeling says 20. But I am still undecided.To answer your question, one would first have to define which interest rate we are talking about: at 60/80/100/105% loan-to-value ratio. In our case, most financing was done at 100-105% loan-to-value. Occasionally, a bit of equity was brought in beyond the incidental purchase costs. In this range, I see interest rates returning to 3-5% in the medium term. At the classic 80% loan-to-value, it should settle at around 2.5-3.5%. What matters is how strong the interest rate increase by the ECB will be and how inflation will settle. If Ukraine/Russia calms down again, we should see 3-4% inflation. Therefore, I see no signs indicating that we will see 0,x% or 1,x% again for 80-100% LTV ratios. At present, KfW-124 with 1.92% for 10 years is actually once again one of the most interesting options (and we have come here from 0.75% just under half to three quarters of a year ago)