High interest rates with fixed interest, alternative flex loans?

  • Erstellt am 2022-09-27 20:20:26

SoL

2022-09-27 21:41:00
  • #1

You don't even know which installment.
You can do that if you are financing a manageable amount or if there is still a lot of leeway in the installment.
But if you want to finance such a high volume and the installment is already quite high, then it's basically Russian roulette...
 

WilderSueden

2022-09-27 21:52:26
  • #2
You are making the mistake of believing that everything you have seen during the observation period is all that is possible. In this case, we do not even have to look into the future, a look into the past is sufficient. For example, the flood measurement series since the 1950s (often euphemistically described as "since the beginning of records") says little about extreme events. Most of the last 20 years were also quite interest-rate friendly. Extend the chart by a few more decades, and it looks different. Currently, we have a situation that could perhaps develop like the 70s. Back then, interest rates were double-digit at their peak. The problem is: if interest rates should rise quickly now (maybe we have learned from the 70s), then with high debt you have high interest. Take something with fixed interest, at least until the larger part is paid off. If that does not work out, adjust the house to the budget or bring in more equity. PS: A book recommendation for this is actually everything by Nassim Taleb
 

Gregor_K

2022-09-27 22:02:44
  • #3
I feel the same, the skepticism is great. I do not understand the margin of 2.75% as additive percent, but I could be wrong. Of course I don’t know the rate. That’s why I also wrote that a rate of €2800 would be affordable. Anything above that I have to cover from my equity and I know that doesn’t work well forever. You are absolutely right, I cannot foresee everything. Unfortunately, the chart does not go beyond 1999. I roughly know the situation in the 70s; in case of the variable loan, it would lead to a financial fiasco for me. :(
 

Tassimat

2022-09-27 22:15:14
  • #4
How, when, and at what amount must this margin be paid otherwise? How do you understand it? I consider it highly unlikely that the bank simply passes on the Euribor without a surcharge.
 

lastdrop

2022-09-27 22:15:53
  • #5
The information provided does not match for me. Euribor + 2.75% does not result in an effective interest rate of 0.61%.

The 2nd page is a fixed interest rate with interest rate lock?!?

I can't understand it …

?
 

Gregor_K

2022-09-27 22:25:44
  • #6


I also don't know why there is an interest lock-in entered there.
 

Similar topics
20.05.2013Question: 1% repayment and 10 years fixed interest rate. Will the house never be paid off?13
05.10.2014Building a house without equity26
27.10.2014Fixed interest rate financing without equity?20
02.02.2016It doesn't work without equity - experience!109
15.09.2016Financing without equity with security?52
30.08.2016Construction financing 40,000€ equity, tied to a condominium29
03.09.2016Interest rate / rate - bank calculation16
13.12.2016Realistic monthly rate59
10.01.2017Construction financing without equity capital, but with other liabilities36
21.02.2017Is home financing possible like this? Alternatively, save equity for a few years38
27.05.2017Realistic or daydream? (Buying property without equity)95
31.07.2018For how many years of fixed interest period would you currently finance?57
02.07.2019Financing with a 35-year fixed interest rate52
04.06.2020Is building a semi-detached house sensible despite low equity with a long loan term?79
26.08.2019Consumer credit as equity39
17.09.2019Building a house without equity - is that possible?117
29.08.2019Construction financing - mortgage instead of equity?58
17.06.2021House purchase - Is the fixed interest rate realistically estimated?11
18.12.2024Construction financing without equity as an option?162
25.09.2022Financing monthly installment €2500 with 40 years term117

Oben