Current financing offer from the house bank

  • Erstellt am 2022-01-24 10:38:10

driver55

2022-02-22 10:20:16
  • #1
Sure, but that’s not the point at all. It’s only about the projected 3% interest rate for a 20-year fixed rate period on a new build in 2032.
 

TmMike_2

2022-02-22 10:27:20
  • #2
For me, there were primarily 3 reasons. 1. KfW loans made up 2/3 of the financing amount for me. 2. Interest rate premium of 0.7% for the rest with 20 years instead of 10 years term 3. I repay relatively high and the marginal interest rate was enormous. If there are significantly high interest rates in 8 years, I will simply provide other liquid funds for the rest and shift. If interest rates are low, I will refinance.
 

hauskauf1987

2022-02-22 12:33:26
  • #3
Signed the loan yesterday, 1.42% over 20 years

Regards
 

BackSteinGotik

2022-02-22 12:48:10
  • #4
The "as usual" already suggests that you also see that refinancing could result in a different value than the one currently recorded in the books. Which is understandable – in 10 years, little has been repaid, interest rates have risen, and the value has not increased but is about 25% lower compared to the peak. Thus, despite repayment, the remaining debt has not decreased significantly compared to the value, so that one essentially starts again at zero.
 

Georgian2019

2022-02-23 12:15:17
  • #5

How: 20 years fixed interest would have cost you 2.45% or even more? Until the beginning of this year, 20-year fixed rates were around 1.5-1.8% at 80% loan-to-value. But certain banks regularly had promotions: take 30 for 15 or something like that, or you could negotiate well with banks.
And that interest rates would rise again was clear for a long time. The only question was when. The FED had already raised and the ECB kept hinting at it again and again. And especially with current inflation. And no: Italy & co. won’t go bankrupt if they now have to pay 2% instead of 1.4%. Inflation in the Eurozone balances it out. Especially since Italy and so on were not insolvent in the past even with 3-4% on government bonds.
 

WilderSueden

2022-02-23 13:05:38
  • #6
Where do you get 2.45% from? There's nothing about that in my document. Even 1.45% is quite a markup compared to 0.72% or where I end up here. Specifically, that's about twice as much interest and that makes itself noticeable from the very beginning. And as I said, I am calculating with rising interest rates. But not to the extent that a long fixed interest period is definitely worthwhile.


There you are comparing apples and oranges. Apart from the fact that inflation and debt ratios were lower in the past, all the countries had their own currency until just over 20 years ago. Insolvency, however, always only occurs in foreign currencies. Now the euro is (at least theoretically) a foreign currency for all member countries as they have no possibility to devalue themselves or print money. The former is still the case, the latter is attempted by all sorts of possible and impossible tricks through the back door. However, this creates a dependency of these countries on the ECB and vice versa – after all, Pandora’s box is open – a dependency of the ECB on politics within these countries. Therefore, normal monetary policy is still a long way off and accordingly, strongly rising interest rates in 10 years are quite unlikely unless inflation turns out to be significantly stronger than currently expected.
 

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