Low-interest rates: housing loans cost as little as never before

The interest rates are very low. Therefore, higher repayments are required. But the right to make special is still underused. It’s worth it.

The mortgage rates fall further and further. That’s why property buyers pay less and less for their credit. This data shows the financial services provider Dr. Small. Accordingly, the standard monthly rate for mortgage loans fell in January to a new low of 471 euros. In December, for a loan amount of 150,000 euros with a ten-year fixed interest rate (repayment of 2 percent, lending 80 percent) a month still 22 euros more had to be paid. Exactly one year ago this rate was even at 606 euros. The bottom line is now a saving of 135 euros, borrowers now have a month more available than it was then.

A look at the mortgage rates a similar picture. Currently, 1.4 percent in this country is due for a loan with a ten-year fixed interest rate on the data of the FMH financial advice on average. This is also a historically low level. A year ago the figure was around 2.7 percent in 2008 even 5.5 percent. Homebuyers want to commit the borrowing rates for 15 years, they have to pay only a small fee and are now on average a total of 1.85 percent. The values are based on data from 40 selected financial institutions.

In the low-interest rate environment, some trends have solidified in real estate financing, as data from Dr. Klein show. It is striking that the borrower to secure the low interest longer. Thus, the average nominal fixed interest rate recently rose sharply by eight months. In January, she was 13 years and five months. Formerly a ten-year fixed interest rate for mortgage loans was the rule. But in the meantime would offer more and more institutes by default a rate fixation period of 15 years, says Max fall of the FMH financial advice. Recently, many savings banks and cooperative banks also were added.

Pay off quickly in low-interest rate phases

The lower interest burden also leads to higher scheduled repayments. The average repayment rate is according to data from Dr. Small 2.6 climbed in December to 2.69 percent in January. Homeowners invest on average still about 22 percent equity in their construction projects. The rest is the loan. Nevertheless, there are also full-financings, that is 100 percent loan without equity commitment, set higher requirements for banks and more interest rise.
The average loan amount has remained unchanged at 172,000 euros. Compared to last year but that is an increase of 16,000 euros. This increase should not least are the many places sharp rise in real estate prices, and also that more and more people buy their own homes who have less money for a rainy day. The data from Dr. Small underlie 30,000 transactions.

At historically low value: Mortgage Rates

For a successful financing, there are many screws. The interest and principal are undoubtedly the most important. For autumn are regular repayments of at least 2 percent duty. Actually, it should be but 3 percent or more in view of the low-interest rates. In addition to these scheduled repayments borrowers can also make unscheduled usually if something still remains of the holiday and Christmas bonuses or lottery ticket wins last times. But in practice appears to make most borrowers of this important component too rarely use. Of these reports, for example, Baufi24.de, an Internet portal for residential mortgages.