ETW Financing - Has the interest rate situation deteriorated extremely?

Calculate how much interest will go to the bank in 10 years with a 70000 loan. The effort for the bank is almost the same whether 1 million for 30 years or your few €. Then age can also play a role

shot up drastically?

On the way to healthy normality. However, only with very small steps.

Hello,

we have been done with our own construction financing since February 2021. It was through Interhyp, we got a portal access there.

Now I wanted to do some calculations and play around a bit for someone else with this account, of course adjusting salary, place of residence, etc. all adapted.
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I will make an appointment next week to verify everything with all the offers... Usually, there’s still something possible on site anyway!

Why do you have to make an appointment if you are done with your financing? For whom is the financing?

Interest rates are clearly going down again. Yield on the secondary market between 31.05. and 09.07. by -16 BP…

So it may sound like macro babble now, but what the ECB is currently suggesting regarding its fundamental goals and the direction of monetary policy means there will be no change in the interest rate situation for years. Even with inflationary pressure, they are willing to accept missing the inflation target in the short term. The target itself will probably also be raised at least marginally. Only with sustainable changes and a secure passage through the Corona crisis will the floodgates slowly start to close. A successor for the bond purchase program (which will probably run until spring 2022) is already in the starting blocks. It may have a different name, but it will still flood the market with liquidity.

Of course, sometimes it goes up or down by 20 basis points here and there, but the trend since the beginning of the year should at least theoretically lose some momentum for now due to the announcements of the last few days. What do you think?

PS: By the way, I am also about to arrange financing, so hope is probably a bit the father of the thought. Surely many banksters read here, they must have the insides ready ;-)

PSPS: I was also once a bankster, so I always allow myself this pun ;)

It's all a matter of expectations. Compared to the low point at the beginning of the year, you can be annoyed that you missed it. Compared to the interest rates of recent years, you are still extremely favorable and can be happy. In my opinion, waiting is no longer worthwhile now. (Wir fühlten uns 2001 mit "vier komma irgendwas Prozent" wie die absoluten Zinshelden.) :cool::oops: