Alex124
2019-06-21 08:00:31
- #1
A different approach...
You are assuming continuing falling or stagnating, but rather not massively rising interest rates (I agree, but that doesn’t matter here). In the first years, you want to significantly reduce the loan amount to then comfortably pay off the rest financially in the long term.
Assuming I have understood this correctly, one could also finance the entire amount with a flexible loan (i.e., without fixed interest rate). This way, your interest rate changes every few months according to the market, which would be relatively easy to handle with a high income. You can additionally repay as much as you want, and if the loan-to-value ratio is within the range you want, you switch to a loan with fixed interest rate. Advantages:
- Special repayments possible anytime and without limit
- When switching to a fixed interest rate, you could even change the bank
- If things go as I hope, in a few years your loan-to-value ratio will be better and the interest rates favorable, so ideal.
Disadvantage:
- Larger interest rate increases directly affect the monthly installments
You are assuming continuing falling or stagnating, but rather not massively rising interest rates (I agree, but that doesn’t matter here). In the first years, you want to significantly reduce the loan amount to then comfortably pay off the rest financially in the long term.
Assuming I have understood this correctly, one could also finance the entire amount with a flexible loan (i.e., without fixed interest rate). This way, your interest rate changes every few months according to the market, which would be relatively easy to handle with a high income. You can additionally repay as much as you want, and if the loan-to-value ratio is within the range you want, you switch to a loan with fixed interest rate. Advantages:
- Special repayments possible anytime and without limit
- When switching to a fixed interest rate, you could even change the bank
- If things go as I hope, in a few years your loan-to-value ratio will be better and the interest rates favorable, so ideal.
Disadvantage:
- Larger interest rate increases directly affect the monthly installments