High interest rates with fixed interest, alternative flex loans?

2022-09-27 23:29:03

Thank you for the thread, I am currently considering a similar direction. From my point of view, an increase greater than 4 percent Euribor is not sustainable for longer than 1-2 years solely because of all the government debt, so I also think that long fixed interest rates are now wasted money. There is currently a lot of panic in the market, which can change quickly.

But yes, there is a risk behind it. Alternative short fixed interest rates, under 5 years, are probably not possible?

2022-09-27 23:42:20

Response from the financier who deals daily with variable loans based on Euribor:
1. variable means new interest rate every three months (basically a 3-month fixed interest)
2. based on 3-M Euribor (currently around 1.15 - you know the chart)
3. then the price = profit = margin for the bank
==> is exorbitantly high in your example at 2.75%, about 3-4 times what the bank earns on a long-term loan (that's because you can exit at any time), I sold a real loan (commercial and not residential property) yesterday with a 0.93% margin
4. DSL Bank has an offer for a classic long-term loan with 5 years
5. DSL Bank’s offer is absolutely unrealistic. The refinancing of a bank currently for 5 years is over 3%. In that respect, DSL would lose money every month.

First of all, thanks for getting involved here. If you say that 2.75% is added on top, I no longer understand the whole offer. There is also a fixed interest rate registered. Maybe I'll just ask the financier again tomorrow.

2022-09-27 23:44:41

Alternative short fixed interest periods, but nothing under 5 years is probably possible?

I would be interested in that as well. Is there, for example, a fixed interest period of 3 years?

2022-09-28 06:26:40

at a 2.75 margin you currently come to about 3.80 percent. so quickly forget the whole thing again.

2022-09-28 07:00:05

That is an interest casino you are running. Hands off

2022-09-28 07:48:21

This is an interest casino you’re running. Hands off

Mentality issue – in the States, the vast majority is financed with variable rates. By the way, there is real inflation there and not like here, an energy inflation that actually cannot be influenced by interest rates.

High interest rates with fixed interest, alternative flex loans?

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