possible interest rate fixation

2016-05-03 07:58:37

Hello,

we are currently planning a possible home financing and would like to get some preliminary information. We would like to finance approximately 150,000 euros. When I enter this amount into a mortgage calculator, I get a term of 6 years and 2 months until full repayment. For the fixed interest period, I can choose 5 years or 10 years. 5 years would be too short, as there would still be an outstanding balance of 30,000 euros, 10 years is much too long and therefore associated with higher financing interest. What is the best way to do this?

Best regards
Sabine

2016-05-03 08:07:43

Hello,

we are currently planning a possible house financing and would like to get information here in advance. We would like to finance about 150,000 euros. When I enter this amount into a construction financing calculator, I come up with a term of 6 years and 2 months until full repayment. For the fixed interest period I can choose 5 years or 10 years. 5 years would be too short, there would still be an outstanding debt of 30,000 euros, 10 years much too long and therefore also associated with higher financing interest. What is the best way to do this?

Best regards
Sabine

Hello Sabine,

5/10/15 year fixed interest periods are "standard" in the calculators. In your specific case, I would consult a broker and ask for a 6-year fixed interest period with a small outstanding debt to be offered. Alternatively, 5-year fixed interest period and 5% special repayment p.a., which also makes 5*5 years = 25% repayment here.

2016-05-03 08:11:39

You choose the repayment or the fixed interest period accordingly. You can also fix it for 6 years and 2 months or increase the repayment slightly (for 5 years) or reduce it (for 10 years). The [Internetrecherche] is anyway only a very rough calculator.

2016-05-03 08:18:55

I thought I could only choose between 5 or 10 years. Would 6 years then cost me an additional fee because it is something special?

Best regards
Sabine

2016-05-03 08:21:38

Depends on the point of view... a bit more expensive than 5 years, or quite a bit cheaper than 10 years.

For orientation: take the difference between 5 and 10 years, divide it by 5 and add this small remainder to the 5-year condition.

It's nothing special. Day-to-day business.

2016-05-03 11:08:40

Thank you for the information.

Best regards
Sabine

Similar topics
20.05.2013	Question: 1% repayment and 10 years fixed interest rate. Will the house never be paid off?	13
12.09.2015	Repayment or Repayment + Home Savings Plan	10
23.01.2016	Assessment of financing offer - Which repayment	36
25.05.2016	Financing without equity - Repayment / Interest	63
28.02.2018	How much repayment is advisable for how much net income?	196
22.02.2018	Financing with low repayment and many special repayments	60
10.01.2019	How would you finance €340,000? Split it?	18
13.08.2019	Hereditary leasehold land, land register - take over outstanding debt?	15
05.03.2020	1% repayment. Which banks? Requirements? Free land charge	34
02.03.2022	How much remaining debt at 46 is okay?	40
06.07.2022	How secure is the collateralization of the remaining debt via a home savings contract?	17
25.11.2022	Increase repayment or top up building savings?	20
06.03.2023	Is a building savings contract with a high outstanding debt sensible as partial security?	17

possible interest rate fixation

Curly

HilfeHilfe

nordanney

Curly

toxicmolotof

Curly