Interest rate fixation

  • Erstellt am 2010-07-23 11:54:20

Hausbender

2010-07-23 11:54:20
  • #1
I am just starting the planning for a single-family house. The current interest rates are said to be favorable. Ergo: I want the longest possible fixed interest period, that is 30 years.

As advantages, I expect that I can push the monthly installment to the limit because I know there will be no more increases to endure.

On the other hand, I wonder if with the lower interest rates and a shorter fixed interest period, I can achieve a higher repayment rate so that I could easily compensate for any increased interest rates after the fixed period ends because more of the loan amount has already been repaid.

Is there a kind of "turn-around" point from which higher repayment percentages make more sense than higher interest rates due to the long fixed interest period?

Can someone help me find a way to weigh the pros and cons clearly?
 

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