Forward loan - Secure interest rates now?

That was just a thought anyway because of the currently low interest rates. If it is not worthwhile at the possible time x, everything stays the same and I will see how things look after 10 years. If it is better than it was a little over 4 years ago at the conclusion, all the better. If the interest rates are actually higher than 4 years ago, it doesn't matter either, then everything just stays the same...

So, yesterday I had a phone call with Dr. Klein (?) or whatever they are called... If you were to sign a contract now that starts in 5 years and then has a fixed interest rate period of 15 years, you would pay about 0.6% surcharge on the current conditions for a loan with a 15-year fixed interest rate. In total, that would be about 2.1%. For people who financed 5-6 years ago and pay around 3% for 10 years, that wouldn’t be so bad at all...

So, yesterday I had a phone call with Dr. Klein (?) or however they are called... If you were to sign a contract now that starts in 5 years and then has an interest rate fixed for 15 years, you would pay about 0.6% premium on the current conditions for a loan with a 15-year fixed interest rate. In total, that would be about 2.1%. For people who financed 5-6 years ago and are paying around 3% for 10 years, that wouldn't be so bad at all...

Exactly. 0.9% cheaper + longer interest rate security (15 years)

Quick question regarding the forum's opinion:

We have two loan components: One for €110,000 at 1.65%, term until 2031. So this one is not the topic here.

Component 2: Taken out with €175,000, currently outstanding €153,000 at 3.11% (2012, hence the higher interest rate). The fixed interest period ends on 30.01.2022, so in 58 months. I don’t have the exact numbers in mind, but let’s simply assume a remaining debt of €145,000 at that time.

Now I am already thinking about a forward loan. Security is my priority, but I’m really unsure whether that isn’t way too early.

Opinions?

Well, the longer the lead time for a forward loan, the higher the interest surcharge. However, the interest surcharge is always based on the current interest rate level. In other words, if you wait longer, the overall interest rate level can throw a wrench in your plans.

There is also the matter of the rankings in the land register in your case.

Contacting an intermediary to find out the current conditions for your case can't hurt.

Off the cuff, you will end up with something between 2.6-2.9% for 20 years with 60 months forward.

From the gut feeling you will end up somewhere between 2.6-2.9% for 20 years with 60 months forward.

I also roughly calculated that online. Of course, expensive by today's standards, but as I said, security matters more to me. Since I would still pay less than now and be secured for the entire duration, I will actually try to arrange it.

The loan is in first lien in the land register, so no problem.