Own home: interest rate development / interest rate / interest rate increase / conditions

Unclear what the trainee salary at Bundesbank or UPS has to do with the fact that 0.5% per month means having or not having 125 € (with 300 T€). Or put differently, for example, free canteen meals every day or not...

A 0.5% difference is quite a lot. Actually, the differences between the offers are not that big. They are usually more in the 0.1 range and depend on what you can do with the money. There are providers who don't really care what you buy with it ([Kitchen, fireplace, etc. all no problem]), who also don't want every euro accounted for, and there are others where you need a special permit if you deviate from their payment plan (which NO builder accepts).

Currently, interest rates are historically low, but they have been rising significantly again in the last few weeks (0.2-0.3% for 20 years). Yes, a 0.5% difference means 125€ less interest per month; over 10 years and 1%, it even amounts to a whopping 250€ per month. But what happens after the 10 years? In that time, you have saved around 25,000€ in interest. Yes, a really great sum that could be put toward repayment. But what if the rates are 3-4% then? Or even higher? What then? You must not forget that the 10 years start running as soon as you sign the loan application. If you build for one year, you only have 9 years of repayment. That doesn't add up to much.

Instead of focusing on the last decimal point of percentage, it is better to ensure that the overall package fits and that you remain planning-safe. If the amount is low and/or the rate is high, you can of course also choose a very short term (and low interest) and take a bit of a gamble. For a typical 25-year financer for 300,000€, a 10-year fixed interest period today would be harakiri (unless you expect a really big influx of money - e.g., inheritance).

So the interest rates for a 15-year fixed interest period have increased by 0.5% at Ing-Diba in the last 3 weeks. No one disputes that the surrounding factors are important, but the fact remains: 125 € more in your pocket without doing anything - you are welcome to transfer that to me monthly if you don't care...

When I read something like this, I am always puzzled ...

We refinanced for the last time in 2000 - we had agreed on variability in the original loan - at 6.5%. We were very proud and suddenly could – although not with a smaller installment, we instead raised the repayment rate to 4.5% – pay back a lot of money in a shorter time. Our loan has long been history; but when I read that digits after the decimal point are supposed to be "important" for financing, I don't quite understand the world anymore

Best regards from the Rhineland

The jump costs me about EUR 13,000 all in all...maybe the concrete figure creates a bit more understanding

When I read something like this, I am always confused...

In 2000 – we had agreed on variability in the original loan – we refinanced for the last time; at 6.5%. We were as proud as punch and suddenly could – although not pay a lower installment, instead we raised the repayment rate to 4.5% – pay off a lot of money in a shorter time. Our loan has long been history; but when I read that the decimal place is supposed to be "important" for financing, I don't quite understand the world anymore

Rhenish greetings

It's just that not everyone is rich. And I say that as a doctor who admittedly allows himself the luxury of having 3 children...

The jump of 0.5 percentage points is realistic. Initial repayment no longer 2.5%, but "only" 2% p.a. (just to have said something). And I also find that ~100 euros/month is a significant and important contribution to the bigger picture, by no means a marginal issue. Many people have annuities around 1000 euros. There (!) that would simply be 10% of the annuity.

By the way, the interest rate increase has not yet reached the overnight money (at least not with mine). My developer has also not yet adjusted his offer.