Financing: Covert spending makes cheap mortgages more expensive Consumers should not think of cheap loans. Home financing is hardly possible without own funds. However, consumers should not be tempted by cheap credit. “It does not matter whether interest rates are low by historical standards or not,” says Niels Nagelhauser of the consumer advice center in Budeun. “One should not force oneself to do so and have to make quick decisions based on the principle” Quick buys, because interest rates will rise soon “.
Some credit institutions currently have a ten-year lending business with an interest of less than three years. “It’s extremely cheap,” says Alexander Nuer of the Association of Private Building Societies. Interest rates were low, well below the long-term average of around six percentage points. “and when the financial resources are secured.
Markus Fecrt from the Consumer Advice Bureau in North Rhine-Westphalia says the same: “Those who can largely manage without loans can not do much good.” Anyone who contributes 30 or 40 percentage points to their own contributions is in the It is not recommended that the burden of interest plus repayment not exceed 40 percentage points of the income of households, so that the property does not cause any difficulties.
Feck added that it was important to be able to settle the partial payments from current income. This also applies if increased interest rates can accrue for follow-on financing after the loan agreement expires. By agreeing to a longer commitment period – usually five, ten or fifteen years – with many banks, the risk of loss of unpleasant follow-up financing can be reduced.
“The very long-term 25-year contracts are much later today than they were earlier,” says consumer adviser Feck. It can not be said in general whether a short-term with a lower or a long with a higher interest rate. “” I would rather choose the longer one, even if it costs a little more, “says Feck,” because of safety, as long as possible from the low interest rates too ? s genieÃ.
If this is particularly low, a sophisticated look would be quite appropriate, says Feck: “You should look for hidden additional costs.The conclusion is that the cheapest product offered is quickly more expensive than that of the competitors with the slightly higher interest rates.