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Schutzgemeinschaft

Normal earners should prefer a long interest binding Behringen, August 23, 2013. Construction money is still historically cheap. This applies to all interest periods. Still cheaper, builders can sometimes finance their real estate with a variable rate mortgage loan. But the possible interest saving face increased risks in financing, warns the protection community for e.V end of construction finanzier”in Munich (www.finanzierungsschutz.de).

Normal earners should choose a maximum interest rate of home financing. In all common run-time segments (5, 10, 15 and 20 years) mortgage loan cost approximately 3 percentage points less than the long-term average (stand: early August 2013; more on the Internet at). At an interest rate of 15 years, for example the cost advantage for an investor with 250,000 euro summed up to home loan more than 100,000 euros. Who this money in addition to the ongoing repayment, in the repayment of the loan say invested, much more than the half of his home has relief in the subsequent follow-up financing”, Florian Haas, Chairman of the Schutzgemeinschaft calculates. The conclusion of a variable rate mortgage loan can be significantly cheaper. The reason: The interest rate of loans with longer codification is based on the capital market returns, especially to the overall interest of mortgage Pfandbriefe. Bar for variable interest rate home equity loans is the 3-month Euribor money market rate regularly.

Banks calculate this as soon as they borrow money with each other for three months to. Currently (early August 2013) the 3-month Euribor is around 0.23 percent, the yield on mortgage bonds with 10 years to maturity 2.10 percent almost. The difference of about 1.8 percentage points, builders close currently make a very good business with a variable mortgage loan. “This can work, but doesn’t”, Haas warns. Because how much interest banks and savings banks for a variable mortgage loan require, in the main the own profit targets, as well as the business policy of the institution depends.

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