Building loan is more expensive again. The best home builders think early on the follow-up financing – and benefit from the current low-interest rates in the future.
Many borrowers are now wondering how the low-interest rates can save for the future. Especially with long-running construction financing will be necessary, when the deadline is approaching, where the first credit expires and a follow-up financing is necessary.
Demand for loans with a lead that are retrieved after twelve months or even later is increasing, but the banks may charge fees. There are also cheaper alternatives.
The likelihood that interest rates will be in a year higher than at present, has recently increased. The interest for a ten-year mortgage is currently at an average of 1.8 percent, as the FMH has identified financial advice based on 40 banks. End of April, some institutions had called less than 1 percent. Meanwhile, it has come in the bond markets to a sell-off, with the yields were pulled up.
Banks charge interest premium
The reference rate of the euro area, the yield on ten-year government bond rose from 0.05 to just under 1 percent and now stands at 0.8 percent. In the United States, the first rate hike is getting closer since the financial crisis. The trend is back toward rising interest rates, even if the level is expected to remain low in the future compared to earlier times. Thus, the market based on the current yield curve expected a ten-year yield on the government bond of 1.0 percent in one year and three years of 1.36 percent.
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In real estate finance, the theme plays a big role, especially when the follow-up financing must be planned. Most homeowners want to save the still low-interest rates. For that, there are different possibilities. According to Norbert Geiser, the pricing in the Postbank mortgage responsibility, customers whose funding expires in more than five years can secure low-interest rates with forwarding loans.
For this, but the banks require an interest rate premium that fails, the higher the longer the period before payout. Usually, the lead time between twelve and 36 months is, but there are also down and up different offers.
To the point allocation ripe
The conclusion of a forward-loan for the follow-up financing also holds Christiane Kienitz of the Consumer Hesse after the recent rise in interest rates for worth considering. However, she advises borrowers to compare the offers of good and pay attention to the interest rate premiums. According to her, the premiums on forwarding loans that are completed twelve months in advance lie between 0.1 and 0.3 percentage points.
With a lead of 36 months, the span increased from 0.2 to 0.75 percent. Kienitz points out that the financial statements of a forward-loan correspond to a bet on rising interest rates. the borrower has secured the loan interest rate of 1.8 percent three years before the follow-up financing and paid a premium of 0.3 percentage points, then the business equivalent of just for him if, by the beginning of the term of the new loan interest rate 2 1 percent.