Mortgage rates rose at the beginning of this year, but since April interest rates have fallen almost continuously. Currently, construction loan interest rates are at their lowest for a long time.

The idea of ​​taking out a real estate loan

The idea of ​​taking out a real estate loan

Many potential borrowers are now waiting for the decline to continue, which is why they can not agree with the idea of ​​taking out a real estate loan that is subject to a longer fixed interest rate.

Exactly the opposite is the case: Instead of choosing a long-term interest rate, more and more interested people are thinking about taking a variable loan.

The interest burden that a variable loan entails increases significantly

The interest burden that a variable loan entails increases significantly

A variable loan is a loan whose interest rate is not fixed – instead, the level of the interest rate depends on the development of the interest rate markets. By borrowing such a loan, the borrower has the opportunity to benefit from further interest rate decreases.

On the other hand, the risk is often ignored: if mortgage rates rise, the interest burden that a variable loan entails increases significantly. For this reason, it is even more advisable to keep your fingers off the loan. Most home builders and homebuyers are better off opting for a loan that is subject to fixed interest rates. It is best to choose a long-term loan. Reason is the already very low mortgage rates: Who now takes a real estate loan, can benefit for a long time from a low interest rate.

A rise in interest rates is expected for the coming year

A rise in interest rates is expected for the coming year

The likelihood that mortgage rates will continue to fall, however, is low. Rather, a rise in interest rates is expected for the coming year. Consequently, the conclusion of a variable loan could soon take the form of high interest rates.Mortgage rates rose at the beginning of this year, but since April interest rates have fallen almost continuously. Currently, construction loan interest rates are at their lowest for a long time.

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