ralalla
2012-03-30 12:32:01
- #1
That is the problem, hard to understand.
I have corrected my description again.
Yes, I pay interest and into the [Bausparvertrag], there is 0.5% interest on the balance.
The [Bausparvertrag] is comparable to a 25-year loan. It secures the interest rate over a long period.
With the [Bausparvertrag] I have an effective interest rate of 3.85%, and with a bank loan I don’t know anyone who would offer you a 25-year term loan with these interest rates?
In years 11-15 the interest rates have not yet been determined. The advantage I have is that I can pay in arbitrarily more in years 1-10 and thus shorten the term until allocation. This reduces the uncertainty of the interest rates. After the allocation I have fixed interest rates again.
I will look at the matter again over the weekend.
I have corrected my description again.
Yes, I pay interest and into the [Bausparvertrag], there is 0.5% interest on the balance.
The [Bausparvertrag] is comparable to a 25-year loan. It secures the interest rate over a long period.
With the [Bausparvertrag] I have an effective interest rate of 3.85%, and with a bank loan I don’t know anyone who would offer you a 25-year term loan with these interest rates?
In years 11-15 the interest rates have not yet been determined. The advantage I have is that I can pay in arbitrarily more in years 1-10 and thus shorten the term until allocation. This reduces the uncertainty of the interest rates. After the allocation I have fixed interest rates again.
I will look at the matter again over the weekend.