Hyponex
2020-03-03 19:43:10
- #1
So hardly any bank lets you get out of the current contract.
BUT the exceptions prove the rule. An Allianz likes to do it, of course against a prepayment penalty.
A DSL Bank can also make an exception, of course against appropriate compensation.
PS. Whether it makes sense, you have to calculate yourself, but probably yes!
You just add it all up: 1) if I stay with the bank, I still pay interest X here for 5 more years 2) if I want to secure cheap interest rates now, I pay a forward premium = current conditions and forward premium, probably around 0.90% here
So you calculate the opposite: what does it cost me today to fix the interest rate here for 20-25 years immediately, it will probably become cheaper. Since without forward premium for 25 years, but I have to consider the compensation for the next 5 years... in the end it should be cheaper!
BUT the exceptions prove the rule. An Allianz likes to do it, of course against a prepayment penalty.
A DSL Bank can also make an exception, of course against appropriate compensation.
PS. Whether it makes sense, you have to calculate yourself, but probably yes!
You just add it all up: 1) if I stay with the bank, I still pay interest X here for 5 more years 2) if I want to secure cheap interest rates now, I pay a forward premium = current conditions and forward premium, probably around 0.90% here
So you calculate the opposite: what does it cost me today to fix the interest rate here for 20-25 years immediately, it will probably become cheaper. Since without forward premium for 25 years, but I have to consider the compensation for the next 5 years... in the end it should be cheaper!